Rationale:
-positive momentum day
-AAPL had a big reversal day on Friday and gapped up above HVN today
-was also upgraded buy BofA analyst to buy; I didn't realize this catalyst in real time, or it would've been a good opportunity to size-in to 15-20% risk
-today's price action is a clear gap up and go set up - note how strong the opening drive was
Reasons for entry:
-strong opening drive - green candles up until 10a
-catalyst: analyst upgrade
-gapped up into resistance zone and above HVN (clear areas to risk off of)
-today the stock had very bullish candle with stock closing very close to high (not a reason to exit so left risk on)
-elevated RVOL; although I didn't see this in real-time, most likely would've only given me the confidence to hang in the trade
Trade Planning
-structure: Long call
-major support: $175-175.50
-add point: NA
-stop loss: $176.75
-take profit price / risk-reduction plan: LVN at $181.50 so start looking to conduct risk-reduction activities around $181: selling further OTM calls, scaling out of 1/2 position; if position reaches 12-15% of NLV before reducing risk; it is time to exit entire trade
2019-03-13 01:50:29
-AAPL continued higher and I scaled out of 1 more lot as stock rallied above LVN - scaled out on the first consolidation of the up move
-also sold further OTM call and almost fully eliminated downside risk with creation of call debit spread, with -10 risk to downside and +490 reward to the upside
Execution detail:
Date/time | Symbol | Side | Price | Position |
---|---|---|---|---|
2019-03-11 09:54:15 | APR18 19 175 CALL | buy | $6.100 | long |
2019-03-11 10:12:55 | APR18 19 175 CALL | buy | $6.150 | long |
2019-03-11 11:37:01 | APR18 19 175 CALL | sell | $6.850 | long |
2019-03-12 10:10:39 | APR18 19 175 CALL | sell | $8.700 | long |
2019-03-12 10:36:15 | APR18 19 180 CALL | sell | $6.050 | short |
2019-04-05 09:45:51 | APR18 19 180 CALL | sell | $16.920 | short |
2019-04-05 09:47:14 | APR18 19 180 CALL | buy | $17.030 | 0 |
2019-04-05 10:27:20 | APR18 19 175 CALL | sell | $21.400 | 0 |
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