Rationale:
-Morgan Stanley reiterated overweight target, but lowered price target
-thought this may be a catalyst play with potential for a lot of upside given the stock has been beaten down
-on the open there was a lot of buying during the first 5min bar, which got me looking for bullish signals as price pulled into VWAP
Recap:
-saw large lots trade on the ask as price was pulling in towards VWAP, once I saw price confirm with an up move, I entered the position
-price began to stall in the 178.90 area and this was the cue to get ready to sell if more buying doesn't come shortly after
-with the selling that came in as price pulled back to VWAP that is definitive reason to exit (no more evidence needed)
-have to be swift in exiting (AAPL is liquid so there is room for error, but I wasn't fast enough on WSM)
-ended up exiting at 9:46a (had sufficient evidence to exit 2 mins earlier and may have ended up at break even), minimizing these losses is the key that keeps the engine working
How could I have traded this better?
-exiting the trade faster once there was evidence to exit, can't hold on unless i'm seeing aggressive buying being confirmed with price
Trade Planning
-structure: long call
-take profit price / risk-reduction plan: 15% / 1 ATR
Execution detail:
Date/time | Symbol | Side | Price | Position |
---|---|---|---|---|
2019-05-30 09:43:27 | JUN21 19 180 CALL | buy | $4.550 | long |
2019-05-30 09:46:10 | JUN21 19 180 CALL | sell | $4.350 | 0 |
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