DVA Trade on Mar 19, 2019 10:19 from kerobo0000: Tradervue User Stock Trades.

2019-03-19 23:35:08
Rationale:
-IVR steadily increased from 3/12-3/18; no clear news or earnings to justify the increase in volatility (earnings on 5/2)
-added this name to watchlist yesterday but didn't enter strangle since volatility was still on the rise; today the volatility has come off a little and we may continue to contract
-entered into Apr expiry as that is where all the liquidity is; only 31 DTE so may have to take profits quickly

IVR=74%
IV/HV=

Reasons for entry:

-high IVR
-portfolio needed short delta, which this non-directional trade offers

Trade Planning
-structure: strangle
-major support: $50
-major resistance: $60
-add point: NA
-stop loss: 150-300 (scale out of 1 lot when it reaches .5x loss on credit received; can hold remainder for 1.5-2x credit)
-take profit price / risk-reduction plan: scale out at 30% and 50% premium capture

2019-03-22 16:10:21
-exited remainder of the position today: first scale out was 34% of max profit and second scale out was for 53% of max profit
-vol crushed very quickly - think this is the shortest period i've held any strangle