Rationale:
-trade was in a squeeze (& mentioned by Simpler YT video); that is how it got on my watchlist
-also has earnings in a couple days
-on the open there, was three green 5-min candles and then a pullback into VWAP on lighter volume, which was a entry signal for me
-the market was positive but did not have strong momentum
Recap:
-overall this was a bad trade on my part; number of rules were broken: did not do chart analysis, was not on WL matrix (also did not complete), did not complete morning routine, did not obey spread / OI requirements (.40-.50 spread & ~550 OI)
-entered with a $2960 position (15% risk), pretty full position size on a name that I didn't fully prep for and has a big spread, doesn't have catalyst or strong volume
-also have never monitored this name and wasn't expecting the dramatic red candles this name had on the morning - price would fall very quickly with little rebound
-didn't know where the levels were and was likely too big to be able to hold through the selloff to 34.60
-one key thing to note is this stock is in XLY and XLY was the weakest sector on the day (need to have sector/market strength and/or catalyst/volume when going long)
Execution detail:
Date/time | Symbol | Side | Price | Position |
---|---|---|---|---|
2019-04-29 10:01:52 | MAY17 19 35 CALL | buy | $3.700 | long |
2019-04-29 10:39:17 | MAY17 19 35 CALL | sell | $3.100 | long |
2019-04-29 10:40:09 | MAY17 19 35 CALL | sell | $3.120 | long |
2019-04-29 10:45:56 | MAY17 19 35 CALL | sell | $2.850 | 0 |
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