Indicator State: PCS READY = TRUE (93/100 Score)
My indicator explicitly flagged this candle as PCS READY, which means every condition required to sell a bullish put credit spread was met:
- Trend: ✅
- RSI (40–65): ✅
- ATR% > 1.5: ✅
- Gap% < 4: ✅
- Above swing low (20): ✅
- SMA50 > SMA200: ✅
On Dec 23:
- 9 EMA (white) > 20 EMA (yellow) > 50 EMA (orange)
- EMAs are fanned out, not tangled
- 50 EMA is rising sharply
This tells us:
- Momentum is dominant (9 > 20)
- Trend is established (20 > 50)
- Long-term participants are supporting price (rising 50)
Here, overlap had already resolved into expansion — ideal.
Look at the candles leading into Dec 23:
- Prior breakout in early December
- Short consolidation / pullback above the 20 EMA
- No daily close below the 50 EMA
- Dec 23 candle holds trend and structure
That dramatically reduces downside tail risk.
We are only looking to collect 40-50% so the chances of this reaching it’s target is pretty high as long as the market doesn’t tank for some reason due to news or trump tweets.
TRADE LOG:
Ticker: GEV
DTE: 31
Spread Type: Put Credit Spread
Short Strike: 595
Long Strike: 590
Credit Received: $1.05
Target Exit Price: $0.55
Result: Closed
Was able to close these at $0.45