Making 75% profit from APPL Bearish trade on a big Up Day?

Is it really possible to do that?

Yes. It is indeed possible. And it was actually achieved as the snapshots prove. And the steps of entry / exit were taken based on clear and simple guideline. Without ambiguity.

First, let us quickly think about the “direction” of a stock.

Even if a very strong stock like AAPL is up significantly on a day, that is from a “Daily” perspective. Within that day, there are ups and down on a lower time frame; say on a 5 minute chart. And if a trader has clear guideline on when to enter and exit a trade, it is possible to take Short trade (in this case it was taken using Weekly Put Options) and book profit quickly.

Here is the actual trade …

1) In the first snapshot, we review the entry and reaching of 20% profit in less than half hour. The Short trade was taken using the Stretch Release entry mechanism which is a Low Risk High Probability trade set up. At this point Bulls were overstretched (Stock was Overbought) and then Bulls gave up (Stock started to decline). We could catch the very top using the Stretch Release mechanism.

2) After that, AAPL continued to fall – to the extent it had a Bears in stretched (Stock was Oversold) condition. By this time, profit had reached 50%. One could start to book profit somewhere between 20-50% profit range and use Protect Profit Stop on the remaining position.

3) AAPL fell further. And came close to Early Range High. At this time profit was 75% and the entire position could be exited. Alternatively, Protect Profit Stop could be tightened. This allowed one to capture significant profit from a Bearish trade on a day when AAPL was significantly up.

What is the general conclusion from a traders’ viewpoint?

The conclusion is that the “direction” of a stock is very much dependent on the “viewer’s time horizon”. And with clear guideline on when to enter trade, when to book profit and when to tighten stop, one may be able to trade profitably on either direction of the market. Long or Short.

That is the Superior Profit Way of Trading Profitably !

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