- Bought the SPY 20NOV20 338 put options no Aug 11, Aug 24, Aug 27 and Sep 2 for an average cost of $13.20.
- Sold the puts on Sep 3 at $15.80 for a gain of 19.70% on the trade.
- 8% portfolio allocation.
Bought the initial put position on Aug 11 when my Momentum Burst Indicator flashed bearish - this turned out to be a bear trap as the index popped the next day.
Added to the puts on Aug 24 when the RSI14 entered overbought territory at 72.25. But the index kept climbing.
Added my third tranche of puts on Aug 27 when the RSI14 hit 77.31 - even more overbought - but the index just kept climbing.
Added my last tranche of puts on Sep 2 when the RSI14 hit 82.90 and the price climbed above the Upper Limit Line of the linear regression model.
On Sep 3 the price bubble finally burst and I locked in my gains on the trade.
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