Batman By Lunchtime, And The Tent That Never Landed

Two Premium Popper signals, two at the money credit spreads, and both of them transformed into risk-free butterflies before lunchtime.

The Popper fired BEAR at the 1st opening range breakout and again at the 3rd. Standard entries, taken the usual way, with a view to transforming them into butterflies should they profit. They did.

Something we looked at live during the group call, as it happened.

$200 locked in, a nice little risk-free batman or pussy cat pattern depending on your preferences, and the rest of the day off.

The Popper Morning

Standard Premium Popper Monday. Watch for the signal, put the trade on, get on with the day.

The software had the quality score sitting above average all day. Here is what the Expert Advisor panel was showing:

• Direction: BEAR
• PP Grade: NORMAL, scoring +1
• PP Win Rate: ~89%
• ORB30 and ORB60: both confirming
• Stack Status: FULL STACK
• Lazy Score: 6 out of 6
• Stack Rate: ~91%

Worth pausing on the grade math, because Monday is the bit people get wrong.

The day and calendar input scored minus 1. Mondays usually do. But the ATR ratio came in at 29.7% for plus 1, and the early breakout added another plus 1. Close aligned and flip bonus both flat. Net grade plus 1, above average, signal stands.

That is the whole point of a scored system. You do not sack off a Monday because it is a Monday. You let the maths tell you whether the rest of the day has paid for it. On this occasion it had.

Underneath that, the SnapView options stats were reading 77.4% on the bull side, 78.6% on the bear side, 77.9% total across 517 samples.

Two Breakouts, Two Credit Spreads

Standard opening range break 1 and break 3 for the chart entries. Both taken in the usual way, this time with an at the money credit spread to initiate.

For anyone new to the format: a bear call credit spread is a defined-risk bearish position. Sell a call close to price, buy a further-out call for protection, pocket the credit. As long as SPX stays below your short strike into expiry, the credit is yours.

At the money is the aggressive version. More credit up front, less room to be wrong, and a far better starting point if you intend to do something with it later.

Which was always the plan.

The Transformer

Here is the bit worth watching, and the bit we walked through live on the group call that morning.

An at the money credit spread that goes your way is not the end of the trade. It is the raw material for a better one.

Once each spread had moved into profit, the position could be transformed. Add a second credit spread one strike below the first, and the combined position stops being a credit spread and becomes a butterfly. Wings 5 points apart. Two of them, off the two separate signals.

The strikes ended up as 7465 / 7470 / 7475 on one, and 7475 / 7480 / 7485 on the other.

Stack those two side by side on the risk graph and you get twin peaks with a flat floor running underneath the whole thing. A batman. Or a pussy cat, depending on your preferences.

The important word in all of that is risk-free.

Because the second spread was funded out of the profit already banked on the first, the floor of the whole structure sits above zero. There is no downside left in the position. Whatever SPX does for the rest of the session, the trade cannot lose. It can only sit at the floor or do better.

That is the transform. Take a defined-risk trade that is winning, and convert the win into a guaranteed floor plus a free lottery ticket on the close.

Profits locked in by lunch time. Risk-free from there.

The Math

• $200 locked in as the guaranteed floor across both positions
• Two butterflies, wings 5 points apart, from the 1st BO and 3rd BO Popper signals
• Two profit tents, centred around the 7470 and 7480 strikes
• No downside remaining once both transforms were on

The theoretical was showing a touch above the floor at $218 into the last hour, with expiry value pinned at $200.

Then the close did what closes do. Price drifted away from the strikes and settled outside both tents.

So the floor is what we keep. $200, no risk, done by lunchtime.

The tent was there for the taking. It just did not land. That is the nature of a free lottery ticket, and I will take a free lottery ticket that costs nothing every single day of the week.

A Low Maintenance Day

Here is the punchline.

The signal fired in the morning. The transforms went on as the trades moved into profit. And after that the position could not lose, so there was nothing left to manage.

Another low maintenance day’s trading with great potential at the closing bell.

The potential did not convert. The day still paid.

The Community Were On It Too

While all that was going on, the Premium Popper crew were filling the channel up.

Don closed the SPX PP Bear for 50%. Bill closed the RUT PP Bear for 50% not long after. Chris posted his 1st BO on SPX to start the week with the chart to go with it. Mary bagged 2 wins on SPX and called it a nice way to start the week. James rolled into the next morning with an LP RUT win.

Special mention to Richard, who traded the exact same strikes and gave everyone the most useful post of the day.

On the 1st BO he sold the 7480 / 7485 call spread for 2.80 credit and bought it back at 2.00. He had intended to set up the butterfly as per the morning session, but in his words:

“Monday morning fat fingers meant I closed it, fully instead. Listening and clicking at the same time are not my forte!”

Then on the 3rd BO he sold the 7465 / 7470 spread for 2.85 credit and closed it at 2.30, having again not quite got the closing butterfly on:

“Despite the annoying retracement a $0.5c target on the ATM option came in just now. That’s me done for the day.”

Two fumbled transforms. Two wins anyway.

That is the bit I want new traders to hear, so I am going to say it plainly. The base trade wins on its own. The transform is the upgrade, not the requirement. Cock up the transform and you still collect. Get the transform on and you get a guaranteed floor plus a free shot at the tent.

There is no version of that where you needed to be perfect.

Students are smashing the results, AGAIN!

Want To Collect Morning Income Like This?

If you want to collect morning income like this, from a trade that is finished before lunch and cannot lose after it, have a look at the Premium Popper system. Same signal that fired twice on 20 July. Same transform that turned two at the money credit spreads into a risk-free batman with $200 on the floor.

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