---
title: "Credit the Sell-off"
slug: "credit-the-selloff"
description: "Discover the \"Post Earnings: Short Put Spread\" strategy, a custom trading approach designed to capitalize on stock movements after earnings announcements. Learn the open and close conditions, earnings handling, and specific options selections for effective post-earnings trading."
tags: ["Today Tab 2.0", "Short Put Spread", "Credit the Sell-off"]
updated: 2026-10-16T20:32:50Z
published: 2026-10-16T20:32:50Z
canonical: "learn.trademachine.com/credit-the-selloff"
---

> ## Documentation Index
> Fetch the complete documentation index at: https://learn.trademachine.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Credit the Sell-off

This is a discussion of the "[Credit the Sell-off](https://www.trademachine.com/index.php?share_key=20260914_IsGCZZJY1fW6r0Np)" strategy.

Credit the Selloff is a bullish strategy that sells a put credit spread when a stock is deeply oversold (14-day RSI below 25) and flat or down for the day, exiting when 50% of the credit is captured, RSI rises above 40, or earnings are two days away—whichever comes first.

### Overview

- Short Put Spread
- 2 legs

### Credit the Sell-off Strategy Settings

#### Credit the Sell-off Open Conditions:

- 14 Day RSI below 25
- On the day, the stock moves down 0% or more
- On a scale of 1 to 5 (best) the minimum [liquidity](/v1/docs/liquidity-technical) for an option trade is 4

![Image](https://cdn.document360.io/b73389a5-b202-4bf4-8df2-8c69e8edbb3b/Images/Documentation/image(282).png)

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

- 1x **short 50 delta** put near **30 days to expiration**
- 1x **long 40 delta** put near **30 days to expiration**

![Image](https://cdn.document360.io/b73389a5-b202-4bf4-8df2-8c69e8edbb3b/Images/Documentation/image(277).png)

#### Earnings Handling for Credit the Sell-off Strategy:

- [Never Trade Earnings](/v1/docs/earnings-and-trademachine)

#### Credit the Sell-off Close Conditions:

- 14 Day RSI above 40
- Close 2 days before earnings
- Gains are above 50%
- Options reach expiration

![Image](https://cdn.document360.io/b73389a5-b202-4bf4-8df2-8c69e8edbb3b/Images/Documentation/image(278).png)

#### Open next trade for Credit the Sell-off:

- [At Normal Time](/v1/docs/what-does-the-and-open-next-trade-at-normal-time-and-re-open-immediately-mean)

![image.png](https://cdn.document360.io/b73389a5-b202-4bf4-8df2-8c69e8edbb3b/Images/Documentation/image%2871%29.png)

## Related

- [Today Tab 2.0](/today-tab-2-0.md)
- [Today Tab 2.0 Strategies](/today-tab-2-0-strategies.md)