CSCO Trade on Jul 16, 2019 15:55 from kerobo0000: Tradervue User Stock Trades.

Rationale:
-CSCO broke out above resistance 57.50 after creating an ascending triangle pattern
-I have been stalking this name to look for an entry when price retraces to retest resistance from the top side
-thought through butterfly structures, but settled on a debit spread as i'm looking for a directional move / dont think price will stay in this area too long
-also thought price could run up into earnings (along with vol increasing), so didn't want to be short too much vega, which is what will happen with a butterfly

Trade Planning
-structure: debit spread
-major support: 57.5
-add point: added 1 lot as price pulled back to $57 and held (fully allocated)
-stop loss (price & PnL): break and hold below 56.90 (approx -110 to -130)
-take profit price / risk-reduction plan: take off 1-2 lots at 30% winner and remainder at 50%

IVR= 49%
Potential ROC= 666/834=80% (max)
Key corporate events (earnings, dividend, investor day, etc.)= earnings on 8/14
How much risk should/did I take? $834; appropriate

2019-07-28 12:29:47
-took off 1 lot as price continued to decline; even though the market rallied
-position is below B.E. point and dragging on portfolio theta
-dynamically reducing risk since this is a position I added to

Recap:
2019-08-01 17:11:16
-price took a steep dive to the downside after the fed announced the rate cut yesterday
-believe CSCO is also a market stock so it was really affected (check correlation/beta)
-another example of a stock that broke my initial risk limits and ended worse than expected; need to actively cut trades faster
-this position didn't really workout from the start
-was also very aggressive in the structure (more reward than risk, price ahead of tent), requiring a large up move for profit
-price was not in the tent and essentially lost theta the entire hold period

How could I have traded this better?
-cut trade as soon as lower B.E. and/or support broken

Gain/loss relative to expected gain/loss:
-loss larger than expected (-302 vs -110 to -130); didn’t cut trade fast enough