Rationale:
-1 of 2 names on WL that had strong opening drive (need to specifically define this) on elevated RVOL for the first 5m bar (and almost above 2 st dev for the 2nd 5min bar)
-entered as stock pulled back to VWAP during my entry window (9:50-10:15a) and I entered with approx 20% risk
-also noticed that XLC was the outperforming market/all other sectors on the open
-FB was showing price/vol strength (but no catalyst), while market & sector also showed strength - note this could be a key criterion to put on additional risk
Recap:
-trade began working immediately; have really done a good job of refining entries
-I had the confidence to continue holding past target b/c I saw a lot of buying on the tape at the 185 price point
-set initial target at 15% gain & second target at 1 ATR - can consider putting together methodology for additional profit targets
-also can further analyze how far a stock will run once it has made a 1 ATR move
-i've noticed that it is rather easy to make $1k on this momentum setup
How much risk should/did I take? $4,770 - should have taken additional risk - stock strength, sector strength, market strength
Trade Planning
-structure: long calls
-major support: 181
-add point: NA
-stop loss: break of VWAP / 30cents on the option contract
-take profit price / risk-reduction plan: take profit at 15% then at 1 ATR (couldn't reduce risk - no more trades available to do so)
Execution detail:
Date/time | Symbol | Side | Price | Position |
---|---|---|---|---|
2019-05-15 09:53:52 | JUN21 19 180 CALL | buy | $7.950 | long |
2019-05-15 10:25:15 | JUN21 19 180 CALL | sell | $9.200 | long |
2019-05-15 10:38:04 | JUN21 19 180 CALL | sell | $9.550 | long |
2019-05-15 10:48:21 | JUN21 19 180 CALL | sell | $10.050 | long |
2019-05-15 10:51:16 | JUN21 19 180 CALL | sell | $9.700 | long |
2019-05-15 10:55:19 | JUN21 19 180 CALL | sell | $9.400 | long |
2019-05-15 11:01:22 | JUN21 19 180 CALL | sell | $9.200 | 0 |
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