Daily Report Card: C
-morning prep: D
-market prep: B
-stock prep: A
-level of focus: B
Rationale:
-ROKU beat earnings expectations on 11/7, stock sold off, but has traded higher every single day since then
-yesterday (11/14) price broke to the upside of the 147.42-148.15 high volume price channel; alerting me to put ROKU on watch today and look for areas to get long above 148
-fresh news of BofA analyst reiterating Buy rating and raising price target to 160 which caused the stock to continue to gap in the PM
Trade Strategy:
-on the open, I was looking for price to break above the PMH/PM range
-enter on pullback to 148
How much risk should/did I take?
-1,760; 14% of NLV; too much risk
-I saw size on the bid, but ROKU leaks above / below levels so need to size accordingly
Recap / Trade Management:
-As soon as I got out of the BA trade, noticed price breaking through the PMH on volume
-I admittedly entered way too soon and then sized up as I saw size on the bid
-didn't wait for the full retest of the PMH/some consolidation above the level (there will be consolidation either above or below the PMH)
-didn't quite think through stop as I quickly exited (have not traded ROKU well over the last couple months), felt like I was trading my P&L as I was trying to keep my earlier gains, but then I sized into this one to catch more gains but got shaken out
What did I do well?
-identify bullish pattern -> price breaking above the PMH
How could I have traded this better?
-be patient for the retest, will enable me to better fight for price and reduce the chances of getting shaken out
What did the tape look like during the most important moments intraday?
Where could I have been responsibly bigger?
-as price consolidated above PMH
Gain/loss relative to expected gain/loss:
- -$46 loss; -2.5% loss
- loss smaller than expected, but trade had potential to be a winner if I wasn't shaken out
Execution detail:
Date/time | Symbol | Side | Price | Position |
---|---|---|---|---|
2019-11-15 09:46:35 | NOV22 19 157.5 CALL | buy | $4.340 | long |
2019-11-15 09:46:50 | NOV22 19 157.5 CALL | buy | $4.500 | long |
2019-11-15 09:48:57 | NOV22 19 157.5 CALL | sell | $4.340 | long |
2019-11-15 09:48:59 | NOV22 19 157.5 CALL | sell | $4.300 | 0 |
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