New Trades for Monday
Buy Signal
BABA - May $185 Calls (closed on Fri. at 8.25)
Sell Signal
TSLA - May $270 Puts (closed Fri. at 18.59)
TSLA has been very volatile lately, ranging from a low of 254.46 on March 25th to a high of 296.17 on April 3rd. It closed Friday around the middle of that range at 274.96. A gap-up Monday would not be a good omen for this trade. Absent that, the stock is likely to test the 255 level.
These two high profile stocks are building strong momentum in opposite directions. Although the option prices seem expensive, it's relative only to the number of contracts bought. In other words, buying 1 option at 18.60 is the equivalent of buying 10 options at 1.86. It's not the price of the option that matters, it's the cash investment.
Premium vs Standard Trade Performance
Below are the two trading tables representing performance of recent trading signals for both services, short-term (Premium Service) and intermediate term (Standard Service). These are all of the open expiration trades; April-May-June.
In the Premium Service below, 15 out of 18 trades have already hit +35% while 2 have been stopped at -75% and 1 trade has yet to hit either threshold.
SHORT TERM
In the Standard Service below, there are 26 trades with 8 hitting 35% and 7 hitting -75%, while 11 trades have yet to hit either threshold.
INTERMEDIATE TERM
I'm not so much plugging the Premium Service (which is $20/mo more than the Standard Service) as pointing out how the shorter-term signals are outperforming the intermediate term signals by a wide margin. This outperformance based upon time frames cannot be ignored, and as I have already indicated to the Premium Service subscribers, shorter time frames (60-120 minute price bars) may yield even better results.
It makes sense to take each service into even shorter-term based signals, with the Premium Service always using more shorter-term price bars the the Standard Service.
The only other difference between the two services is that the Premium Service has the ability to post Alerts and/or Updates at any time during the day, while the Standard Service posts only one Update and toward the end of trading each day.
If any current Standard subscribers want to upgrade to Premium subscriptions, just send us an email: service@bluelinetradingsystem.com.