XLU Trade on Mar 2, 2020 09:39 from GH0ST_0P: Tradervue User Stock Trades.

Gravatar

Shared by
GH0ST_0P

 

3 APR 20 63C

Market panic sold all last week, eventually taking down utilities which are typically a safe haven play. This bad boy is almost never oversold. I thought the market would bounce here as many securities are at support. Now whether this marks a V bottom or merely a dead cat remains to be seen, but I think Utes will do well if the market grinds out a base of high volatility sideways action and funds are more likely to rotate towards defensive stocks in general.

Method

  • RSI Oversold (22)

  • Bollinger Band pierced (2/27-2/28)

  • Pin candle reversing off strong support at $61 area

  • 5Wk Expiry

  • Risk / Reward = 3-4R

Money Management

Risked 5%

Exit Strategy

$68 is the logical resistance and may coincide with the 20dma

image
*I took this screenshot at the end of the day, I entered the trade right around $62.95

UPDATE

Sold a bit too early. I have no faith in the market right now, but I'll take another win just the same.


Execution detail:

Date/time Symbol Side Price Position
2020-03-02 09:39:56 3 APR 20 63 CALL buy $1.650 long
2020-03-03 11:32:51 3 APR 20 63 CALL sell $3.350 0


Leave a comment about this trade!

You need to log into your Tradervue account to leave a comment. If you don't have one,
it takes just a few seconds to sign up, and it's free!

View plans, Sign up for free, or Log in