Buy the Sell-off Strategy

This is a discussion of the "Buy the Sell-off" strategy.

Overview

• Long call diagonal
• 2 legs

Buy the Sell-off Strategy Settings

• Buy the Sell-off Strategy utilizes a custom strategy which is labeled "qa_Diagonal_50-20_CS" under the custom strategy dropdown menu.

Buy the Sell-off Open Conditions:

• RSI 14 days below 25
• On the day, the stock moves down 0% or more

Details on Options TradeMachine is Selecting for Buy the Sell-off Strategy:

• 1x long 50 delta call near 60 days to expiration
• 1x short 20 delta call near 30 days to expiration

Earnings Handling for Buy the Sell-off Strategy:

• Never Trade Earnings

Buy the Sell-off Close Conditions:

• RSI 14 days above 40
• Options reach expiration (Close all legs with front month options)

Open next trade for Buy the Sell-off:

• At Normal Time

Video Transcript