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Oct 2021: SI $135 – $140 Bull Call Spread

Stock

SI

Trade Structure

$135-$140 Call Spread

Trade Date

10/19/2021

Price Paid

$250

Expiration Days

11/19/2021

We are on week 6 of 100% winning trades. A pullback is expected.

We are on week 6 of back to back winning trades and so far where we literally had 100% winners every week. But to expect this to continue in the future is unrealistic. Markets are finally slowing signs of exhaustion and I do expect a pullback which will be a buying opportunity. 

THIS IS A DELAYED TRADE FOR EDUCATIONAL PURPOSES ONLY.

To participate in our live challenge and to access our online training, please click “Your Account” and upgrade to the “Live Trader” plan.

 

Trade Rationale

With most of the earnings trades, you will find some level of judgement and experience coming into play. On any trade that I take right on the day of earnings, it will always come down to watching the price action on that day. I watch the daily candle and see signs of stabilizing before taking these trades. A solid red candle is usually a sign of danger and it is best to wait for another day on those trades. A candle which starts looking like a DOJI with a small body and long wicks are the best indicators of downward pressure dying off. But there is a lot more art than any science to this. You just need to keep watching and learning to develop your own feel for these trades.

Trade Selection Criteria

Overall market movement

Massive drop in the markets and we are nearing the end of a correction.

No Earnings or Significant News

This is a post earnings trade and earnings were announced before market open

Bollinger Bands outside Keltner Channels

Bollinger bands are clearly outside Keltner Channels

RSI Analysis

Trade was taken purely based on price/action

N/A

ADX Analysis

Trade was taken purely based on price/action

N/A

Trade Analysis

I literally caught the bottom on this trade. SI took off immediately in my direction and I was able to close this trade for 94% ROI in just 20 days.

Trade Outcome

WINNER

Profit/Loss

$235

Beginning Account Balance

$21,400

Ending Account Balance

$24,500

To follow along the strategies we use in the $25K challenge, we recommend that you get the strategy book which explains the whys and wherefores of our method. Get it here=> https://amzn.to/2MUOCE5

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