Two Transforms, One Bullseye, And A Trend That Never Turned

Two Premium Popper breakouts, two credit spreads, and two transforms into a guaranteed profit situation with bonus profits available as a choice.

One of them landed close to the bullseye. The other one needed the day to turn around, and the day was having none of it.

[VIDEO EMBED PLACEHOLDER]

Two Breakouts On A Trending Day

Standard stuff to open with. Both SPX and RUT saw standard breakout setups, with the software highlighting good setups as usual.

SPX came up BULL, grade HALF (+0), half size at 0.5x. The Lazy stack read 5 out of 6 with ORB30 and ORB60 both confirming, full stack, stack rate ~91%. Underneath it, the SnapView options numbers across 517 trades: 78.3% total win.

RUT came up BULL as well, and it graded better. NORMAL (+1), full size at 1x, Lazy score a clean 6 out of 6, and the only plus on the grade math came from Close Aligned. Total win 80.7% on its own sample.

Two bull breakouts, two green lights, nothing exotic about either of them.

What neither panel could tell me at the time was how hard the day was about to run.

Two Credit Spreads, And A Trend With Its Foot Down

Both trades went on the usual way. Standard credit spreads to initiate, with a view to transforming them into a guaranteed profit position once they moved into the money.

Then the day did something it does not do all that often. It trended, properly, and it did not stop to think about it.

That matters more than it sounds. A credit spread does not care much whether a move is fast or slow, it just wants to be right. But a transform cares a great deal, because the speed and strength of the move decides what shape you can transform into.

Which is why the two trades ended up looking nothing like each other.

The Transformer, Twice, Two Different Shapes

On SPX, the move was strong but it settled. That let the credit spread transform into a butterfly, wings five points apart, sat at 7505, 7510 and 7515. A tight tent with a sharp peak, because a settling market can be pinned.

On RUT, the move was faster and stronger, and it did not look like settling anywhere. So that one got transformed into a guaranteed profit iron condor instead. Four strikes, 2960, 2965, 2975 and 2980, giving a flat-topped tent rather than a peak.

That is the bit worth slowing down for. A butterfly is a sniper shot at a single price. A condor is a wide net. When a market is running hard and you cannot sensibly guess where it stops, you stop guessing and you take the wide zone instead.

Both transforms did the same fundamental job. Once they were on, the worst outcome available on either trade was a profit, and the only question left was how big.

The Math

SPX

• $80 locked in as the guaranteed floor
• Around $930 taken, because the close landed close to the bullseye inside the profit tent
• $1,080 was the true bullseye at 7510, so it landed near enough to matter
• Butterfly wings five points wide, 7505 / 7510 / 7515

I will admit to leaving a little on the table there. I was tinkering with some new strategy versions while it ran, and I missed out on a bit more than I should have. It was eventually locked in, and it still landed close to the bullseye, so I am not going to complain too loudly.

RUT

• $140 locked in as the guaranteed floor
• Up to $640 available across a very wide zone, between 2965 and 2975
• The close came in at 2,987.40, above the tent, so the $640 stayed where it was
• Condor strikes 2960 / 2965 / 2975 / 2980

RUT sadly did not hit the jackpot despite having a very wide profit tent. And here is the honest reason why: collecting that $640 would have required a u-turn of the day’s strong trend. The trend was not in a u-turn mood. It never came back.

Why Simply Closing The Trade Would Have Cost Me

Here is the whole point of the exercise.

Both of those trades were winners the moment the spreads moved into the money. I could have closed them right there, taken the win, and gone and made a cup of tea. Plenty of people would call that good discipline.

But closing the trade ends it. Transforming the trade keeps it alive with the risk removed.

On SPX, closing it would have banked the win and walked away from roughly $930. On RUT, closing it would have meant never having $640 on the table in the first place, over a zone wide enough that the day genuinely might have delivered it.

Neither of those bonus profits would have been available had I simply closed the trade.

That is the difference between a system that pays you once and a system that pays you once and then offers you a free go at paying you again.

An easy, good day’s trading, made easy by the profit locking process.

The Community Got The Transformer Working

Awesome work team. Slow moving, but cracking out the profits again.

Mary took the biggest slice with an SPX win at 75%. Duncan had both breakouts, RUT and SPX at 60% and 50%, and called it a good day, which it plainly was. Bill closed the RUT Popper Bull at 50%. James got the Lazy Popper RUT win in before 9am and set the tone for everyone else.

Paul closed SPX at 50% and was straight about the fact it got a little too close for comfort on the stop. Worth saying out loud, because a win that made you sweat is still information.

And then the two I want to finish on.

Chris converted his SPX breakout into the lottery trade and locked in 55%. Richard took the SPX Bull BO1 on an at-the-money vertical spread for $2 credit, locked in $50c with the transformer butterfly, and left the rest riding for a lottery ticket win.

In his own words: he got it set up correctly today.

If you followed the debrief from the 20th, you will know why that line matters. Richard ran the same technique twice that day and fumbled the setup both times, once to Monday morning fat fingers and once to an order that did not behave. Both trades still finished green, because defined risk does not require perfect execution.

One session later, he had it working properly.

That is what learning a mechanic actually looks like. Not a clean first attempt. Two messy ones, then a clean one.

Want To Collect Morning Income Like This?

If you want to collect morning income from breakouts that get their risk removed before the afternoon, have a look at the Premium Popper system. Same signals that fired on both SPX and RUT on 21 July. Same transformer that turned two ordinary credit spreads into an $80 floor with $1,080 available, and a $140 floor with $640 available.

Poppers cracking. Team crushing it.

Collect Morning Income
– Learn More