Trade Details & Summary

EWW Debit Spread (LIVE Closing Trade)

Using some of the technical analysis signals we discovered in our backtesting research, we were able to make a quick $130 profit on this bearish EWW debit spread trade.

More Discussion

Was This Helpful? Add Comments/Questions

Show Video Transcript +

I want to go through a live closing trade that we're gonna try to make here in EWW. Now, this is a trade that we got into a little while ago trying to, or assuming that EWW, would be moving down, we used some of our technical signals that we generated using our signals back testing report that we publish on our website.

And now the trade is making about $127, definitely reached our profit target of about $72 that we had, that we kind of back is tested, we know that it is a real profit target to have for a trade like this.

So we got into this trade back on 8/12, it's 8/23 today. So if we go back here to EWW, and you can see where 8/12 is, 8/12 is this day right here. So this red day right here, I'll kind of circle it here so you guys can.

But this is the day we got into EWW. Again that point after the nice run up we had seen some flashing sale signs and some of the technicals that we use, studies we use that we have found to be excellent and reliable. So, we got into a position that was bearish in EWW.

We bought the [inaudible 00:01:05] debit spread in EWW. And as a result, we didn't quite pick the top and that usually never happens, maybe once in a blue moon do we pick the top.

But we are pretty close to the top. So, we're two days off from the top, and now you can see the stock is falling pretty hard today down almost two percent on the day. And so again, what we need to do here is just be diligent in taking the trade off.

So, we're gonna go ahead and create a closing order and sale all five of these. We're trying to get out of 75. That's an excellent price. We've been up since we got this trade. So that position is in. So, this is all live, real time here, so there is a lot of contracts that being traded at the 54/53 strike, those are not us today, but hopefully we can get out of here at about 75.

We might have to adjust this down to 74, yeah, so the market's already adjusted down to 74. In this case, 74 is still good. I mean that's $5 off total for all five contracts so, lets try to undershoot the market here just for the sake of getting out of the trade. And so we adjusted this price down here 74. You can see here I just canceled the other one.

The new one is working at 74. I'm gonna leave this one in here for a little bit. It's about 2:30 in the afternoon, so, we're gonna leave this in for just a little bit. The stocks are running down. So, we don't want to chase this thing lower in price if we don't have to.

We can let the market come to us. But, I'll pause this video and come back here and see if we need to adjust or if we get the fill. All right, so, we're back here and again, we just got filled on this at 74. This is a little before we entered the trade.

Maybe about fifteen minutes, maybe about twenty minutes or so after we entered the trade. We did get filled, and we are now out at 74. I think what's interesting about this is that the stock has continued to run down. This was trading for higher than 74 for a while; we just didn't get a lot of people to fill.

But, you can see here now the 53's and the 54's had a little bit more activity. There not too much activity trading around there, so most of these are probably option off of members who have automatic closing trades, but we just want to get this order in as a live trading video update for you guys.

So, as always if you guys have questions or comments, please ask them in the comment section right below and until next time...happy trading.

eBook Download

The "Ultimate" Options Guide

Ultimate Options Strategy Guide

The step-by-step guide on how to set up each of the top 18+ options strategies we trade to generate monthly income. Read the whole strategy guide in less than 30 mins and have it forever to reference.

Download PDF