For Bullish Trades (Bull Put Spreads):
Sell put strike price below current stock price and buy put strike price with $1 max lost for 1-2 weeks trade or $2-$2.5 max lost for 3-5 weeks trade (stop loss) below the sell put strike price.
Make sure checking RSI 14, Stochastic 80, 20, 14, 3 , MACD 12, 26, 9 EMA and linear reg channel 50/100 indicators for bullish trends or bearish trends. At least 3 of 4 indicators favouring the trades to enter. This is a vertical spreads with the same expiry date.
For Bearish Trades:
Sell call strike price above current stock price and buy call strike price with $1 max lost for 1-2 weeks trade or $2-$2.5 max lost for 3-5 weeks trade (stop loss) above the sell call strike price.
Conclusion, max loss is $165 and max profit is only $85. Very poor risks and rewards ratio, what do you think?
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