This is a discussion of the "Bearish Bursts" strategy. See the best combination of moving averages and RSI that have outperformed the market over 10-, 5-, 3-, 2-, and 1-year, as well as during the Great Recession with a bearish strategy.
Overview
- Long put
- 1 leg
Bearish Bursts Strategy Settings
Bearish Bursts Open Conditions:
- Stock crossed down through the 200-day SMA
- Stock below 50-day SMA
- 20-day RSI is above 30
Details on Options TradeMachine is Selecting for Bearish Bursts Strategy:
- 1x long 40 delta put near 14 days to expiration
Earnings Handling for Bearish Bursts Strategy:
Bearish Bursts Close Conditions:
- Gains above 40%
- Losses above 60%
- Options reach expiration
Open next trade for Bearish Bursts:
