Today I exited my short speculative earnings trade on SHLD (see yesterday's post). It was Chaikin's Bearish stock of the week, and the stock is trading over $2.00 lower (nearly 6%) this morning. I took profits. Here was my exit at the open.
BOT +7 SHLD 100 SEP 14 42 CALL @.17 NASDAQ
Rather than wait a month for the $.17 remaining to decay, I redeployed my buying power to selling a short call spread on Very Bearish rated TRIP. Today TRIP gave an overbought sell signal, is in a weak industry group and it is trading below its Chaikin Trendline. I decided to sell a few strikes out of the money, because Chaikin Money Flow has been bullish and the trendline is really sideways, not down. I wanted to give myself some room to be wrong. My odds of success are just shy of 70%. Here is the trade:
SOLD -7 VERTICAL TRIP 100 SEP 14 101/103 CALL @.60 ISE
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