NFLX Trade on Apr 27, 2020 15:08 from tradelikelarry: Tradervue User Stock Trades.

Trade Planning:

• 78 Chart: Uptrend, Consolidation below recent ATH.
• TTM Squeeze: 78m
• Earnings Date: 7/21-

Reason For Entry:

• Playing 78m / 2h chart. NFLX is in a nice pattern of consolidation below its ATH. TTM squeeze and gaining momentum. Price entered buy zone and order filled for 2 contracts (right below 8 and 21ema). I am risking 2% of my portfolio so far and have room to add one more time to position (at bottom Bollinger Band). These options expire this week so looking for this to make a move over the next couple of days.

Reason For Exit:

• NFLX opened and immediately flushed breaking the pattern and TTM firing short. Closed the trade for a loss (about 1% of portfolio)

Recap:

• The entry was at the correct level (between 21ema and lower BB) second entry was on a strong pull back to the stop out area. Price continued to drop and TTM fired short causing the pattern to no longer be valid. Took the loss (about 1% of portfolio). This was a tough one because NFLX was consolidating below its ATH and the market gapped up and looked strong. NFLX just did the opposite and flushed out, nothing you can do about it but move on to the next valid setup. That's what we do, find the valid setups (our edge) and take shots on those opportunities while monitoring our risk.