Winner: 22.22% Gain On SPY Calls
Summary
- Bought the SPY 20NOV20 320 calls options at $16.74 on Sep 21.
- Sold the calls on Sep 22 at $20.46 for a gain of 22.22% on the trade.
- 2% portfolio allocation.
I bought the calls when SPY closed below the Lower Limit Level of the Linear Regression Model, and the price bar formed a hammer bottom. The next day SPY rallied 1.02% but closed right at the Lower Limit Line - which was resistance.
I sold my calls for a quick one-day 22% gain on the trade, fearing a reversal at resistance the next day - and that's exactly what happened - SPY dropped 2.32% on Sep 23.
SPY is now in the process of hammering out a bottom, so my next trade in SPY will most likely be to buy new call options.
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