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Sept 2019: GOOG $1220- $1230 Bull Call Spread

Stock

GOOG

Trade Structure

$1220-$1230 Bull Call Spread

Trade Date

09/27/2019

Expiration Days

10/15/2019

Trade Rationale

During this month, the market is mostly range bound and not giving many trading opportunities. You will notice most of trades appear unusual and I am trying to make some money by trading the tight range.

Trade Selection Criteria

Overall market movement

SPY pulled back from its all time high of 302 to 294 but is showing signs of going back up again. Overall a range bound market

No Earnings or Significant News

Earnings are behind us and the next earnings will be after our expiration cycle. 

Bollinger Bands outside Keltner Channels

Bollinger Bands are outside Keltner Channels. We are not in a squeeze or low volatility period.

RSI Analysis

RSI has flattened out, but is not touching the overbought and oversold zone.

ADX Analysis

ADX is flat and low confirming that the stock is range bound. There is no trend in place.

Trade Analysis

This spread immediately went against me as soon as I put it on, however as expiration neared it bounced back up and I was able to close it for a profit. If you had bought a regular Call, you would have been wiped out and lost money on this trade.

Trade Outcome

Winner

Profit/Loss

$332

Beginning Account Balance

$9,395

Ending Account Balance

$15,000

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