Nov 2019: AAPL $260- $250 Bear Put Spread
Trade Selection Criteria
Overall market movement
With S&P 500 making new all time highs, the overall market and practically every stock in my watchlist is making new highs. With the first signs of a loss in upward momentum, it is a great time to put on some mean reversion trades
No Earnings or Significant News
Earnings are behind us and were announced on 10/30. There is no significant news or earnings event during our trade cycle.
Bollinger Bands outside Keltner Channels
Bollinger Bands are outside Keltner Channels. We are not in a squeeze or low volatility period.
RSI has flattened out and is in the overbought zone. But not showing any clear signs of a pullback or trend reversal.
ADX is still flat, indicating that the previous upward momentum has lost its strength.
Beginning Account Balance
Ending Account Balance