We are using the strong bull trend on AMAT and its exceptionally low IV to give us the base for a solid Bull Call Calendar. We actually looked at this trade during our FT session on Calendar trades last night and I decided to add it to our ATA trades today.
WDC turned down during this trade and went against us, but the design of the diagonal limited the loss to a very small amount.
A solid trade with NKE ending up right in the range we wanted. Over the last few days, the theta erosion has been strongly in our favor giving us extra profits as we come into the expiration.
WDC has been in a solid uptrend and is also running near the low end of its volatility range. This gives us a good target for a bullish trade, but we want to control the risks if WDC pulls back.
NKE has been in a steady but relatively slow trend up for the last few months. I expect this to continue for the next few weeks, but I am concerned we may have a bit of a pullback.
This trade is designed to make money from the slow progression towards the 56 strike and at the same time limit our losses if NKE suddenly pulls back.
NKE has hit its bottom and is now heading back up. This is a strong company that took a price hit over the last several months. Room to go up further and we will take advantage of that with a Bull Put Spread.