Thanks for the help. I am using WordPress but it’s self-hosted and I am using the Thesis theme. I am unable to find the option you mentioned – my only choice is older/newer first.

- Jeff

Rob

- Jeff

-On another note, is it possible to sort the comments on these posts in a oldest to newest/top to bottom format? As it is, reading multiple comments with replies (which are automatically below the original comment) requires a bit of zig-zagging.

Thanks again,
Mike

Gotcha. My objective wold be to have the short strike at or below the previous low. Most trades would not have met my 10% return rule, but I bend that rules on a hot stock like MA. Using the TOS thinkback tool, here is what I would have done with MA based on my rules in my trading plan:
9/4 SEP 195/190 Bull Put – Credit 57.50
10/7 OCT 200/195 Bull Put – Credit 55.00 (according to my plan I should have entered with a 195/190 but there was not enough premium)
11/5 NOV 210/200 Bull Put – Credit 62.50
11/23 DEC 220/210 Bull Put 220/210 – Credit 125.00
12/10 DEC 230/220 Bull Put – Credit 30.00 (I would pass on this one because I already have an open DEC spread and it would be too expensive to roll and it would increase my risk)
1/14 No play – it’s too close to JAN expiration and too early for FEB expiration – plus earning are in FEB and I don’t like to hold through earnings.

There you have it. A total premium of $330 times the number of spreads and never putting more that $70 at risk for any one month per spread.

As of now, I have removed MA from my ‘On Deck’ watch list until after earnings on 2/4. Hope this is what you were looking for.

- Jeff

Thanks for the comment. According to that definition, you are right in that the last green confirmation is the only one that meets that definition. But, my entries are defined as the second reversal day after the initial formation of the flag in my trading plan. If I were to wait for the price to break the low/high at the beginning of the flag, I would lose too much time value as this may take several days or never happen at all. All I need is the confirmation that the price is continuing its trend. Granted, if I was buying stock and didn’t have to worry about time, then I would wait for the breakout.

Here’s a bit more explanation. If you looked at the chart closely, and I was to wait until the price closed above the previous high, more than 50% would have been bad trades because the price almost immediately started to form a new flag. When I enter a vertical credit spread, I like to set my short strike below the previous low. Waiting for the classic definition would set the short strike way too far away from the current price to give me any decent return – and in some cases no premium to speak of.

Hindsight is always 20/20 and not all trades are going to work out. Finding a balance between risk and reward is the secret.

I’m not sure I understand your last question.

- Jeff

A bullish signal occurs when the price rebounds beyond the upper trendline of the Flag formation, and continues the original upward price movement. This is considered a pattern confirmation.

From (http://www.trending123.com/Chart-Pattern-Scan-Stocks/Technical-Analysis-Trading-Bull-Flags.htm)

Do you consider the confirmation to be different? When looking at your MA chart, only the very last green “confirmation” you’ve illustrated crosses the “upper trendline of the Flag formation.”

My more specific question, would be (trying to ignore hindsight), where would you have placed your trades based on the red trendlines?

Thanks for all of your insight.