Daily Report Card
-morning prep: C
-market prep: B
-stock prep: B
-level of focus: A
Rationale:
-ROKU was gapping up in the premarket and also gapping above one of its prior (10/28) high volume channels, which have acted as rough support and resistance areas over the last couple days
-MS downgraded ROKU on 12/2, ROKU closed at the lows, then bounced on 12/3 (Needham maintained by and raised PT); on Day 2 (12/3) I was looking for continued downside but today I was looking for a long given it bounced, held gains and gapped up in the premarket today (no news)
Trade Strategy:
-enter on break and hold of PMH or retest of PMH
How much risk should/did I take?
-entered 1 tier; nothing on the tape urged me to go heavier, and I just saw NVDA fail at PMH, also knew I would have to give ROKU some room before I was proved right or wrong
-238; 2.5% of NLV
Recap / Trade Management:
-price traded above PMH 149.22 and then pulled back slightly below PMH but stayed above 149 and I entered thinking price could hold 149
-price dipped more than 2 spreads away from 149 and I exited position
-the flaw in this trade decision is I didn't wait 2-3m, or ideally 5mins, after price broke PMH; note that it didn't do it on extraordinary volume (a break of a level has to be confirmed by volume or time)
What did I do well?
-stay light and only enter 1 tier
-quickly getting out when price failed to hold above 149
How could I have traded this better?
-waited for time to confirm price would hold above PMH (entered this trade too early); need to see ideally 5min + above this level since trade occurred after 10a
What did the tape look like during the most important moments intraday?
-TBD
Where could I have been responsibly bigger?
-NA; trade didn't work out
Gain/loss relative to expected gain/loss:
-net loss of -22.59; in line with expectations
Execution detail:
Date/time | Symbol | Side | Price | Position |
---|---|---|---|---|
2019-12-04 11:27:33 | DEC06 19 152.5 CALL | buy | $2.380 | long |
2019-12-04 11:28:46 | DEC06 19 152.5 CALL | sell | $2.170 | 0 |
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