Thursday, January 23, 2020

Jan 23 Trades

Jan 23 Trades

Today I closed one trade and it was a winner. The trade  was a NFLX trade based on the modified bollinger bands strategy. In this post I will try to explain the strategy I used for this trade, and the same strategy that I use to share my trades on the free whatsapp group that I have which is open to anyone who would like to join.

In short, I scan everyday the stocks for 5 closes below or above a modified bollinger band of standard deviation of 0.382 a well as the 50 SMA. 

On January 7, NFLX came up on my scanner by showing 5 closes on the daily candles above the modified bollinger bands and 50 sma. 

On January 8 the trigger above the highest of these candles triggered so I entered a put credit spread  (See image below) and I sent out an alert on the whatsapp group.

On these kind of trades I like to take profits at 25% and go on to the next trade so when we entered we collected 1.15 on the PCS and I set a GTC order at 0.8 with our stop loss being double the credit received so in this case 2.3.

I kept the trade open for earnings because the stop loss never triggered, and i was ok with the risk on this trade in case it went against me after the earnings. The earnings did not come good and the stock went below our sell strike and some members of the whatsapp group contacted me asking if I will be closing the trade and my reply was that i have a stop loss that did not trigger so I am staying in.

Today NFLX bounced back up and our profit target was hit and we closed the trade for 25% profit and we sent the alert to the whatsapp group that we closed it in case anyone was following it thus making a profit of $35 profit per contract. 

NFLX Chart:

Total Profit for Jan 23 2020 profits:

Trade 1: $35 

Total: $35 per contract.

Hope this blog helps you find profitable strategies and in case you want to follow my trades please join the whatsapp group