This is a discussion of the "200 Day SMA Jumper" strategy.
The goal of this strategy is to make a bullish speculation when a stock crosses up through its 200-day simple moving average and is also up 3% or more on the day.
Overview
- 200 Day SMA Jumper utilizes a custom strategy which is labeled "CML_Diagonal_50-20_CS" under the custom strategy dropdown menu.
- 2 legs
200 Day SMA Jumper Strategy Settings
200 Day SMA Jumper Open Conditions:
- On a scale of 1 to 5 (best) the minimum liquidity for an option trade is 4
- On the day, the stock moves up 3% or more
- Stock Crosses Up Through 200 day SMA
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Details on Options TradeMachine is Selecting for 200 Day SMA Jumper Strategy:
- 1x long 50 delta call near 60 days to expiration
- 1x short 20 delta call near 30 days to expiration
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Earnings Handling for 200 Day SMA Jumper Strategy:
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200 Day SMA Jumper Close Conditions:
- 2 days before earnings
- Options reach expiration (Close all legs with front month options)
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Open next trade for 200 Day SMA Jumper:
