WYNN Trade on May 29, 2020 12:46 from tradelikelarry: Tradervue User Stock Trades.

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Trade Planning:

  • Daily Chart: Uptrend, Consolidation below recent highs.
  • TTM Squeeze: Daily
  • Earnings Date: 8/5

Reason For Entry:

  • Playing the daily chart. WYNN is in in a pattern of consolidation below recent highs. One can argue that it is also in a Inverted Head and Shoulders pattern. TTM is in a squeeze and momentum shifting positive. Price pulled back to the buy zone (21ema level) and I executed 1 contract and risking about 1% of my portfolio. Watching for WYNN to continue to new highs. Added to the trade as price pulled back a bit to the buy zone.

Reason For Exit:

  • WYNN worked its way up to the Fibonacci Extension 78.6% resistance level. I was up nicely on the trade but since I only had 1 contract, I was looking for the pop through the resistance level and the plan was to take profits at new highs. Price pulled back and pretty much consolidated below the resistance level. Options expire this Friday and Theta was working against me. I closed the trade for a small loss.

Recap:

  • The setup was correct as price was consolidating below its recent highs. I entered the trade with a small position and the plan was to profit at new highs. Price pulled back and I added to the trade at the buy zone. Unfortunately the options expire this Friday and price consolidated below the highs. Although the pattern is still valid, I closed the trade as Theta was working against me. The takeaway is to purchase options dated further out (at least 3 weeks out) This will give the pattern time to develop. In this case, if I had purchased options that expire in a few weeks, I would have stayed in the play as the pattern continues to be valid. Lesson learned. On to the next!

Execution detail:

Date/time Symbol Side Price Position
2020-05-29 12:46:24 5 JUN 20 86 CALL buy $2.150 long
2020-06-02 10:34:58 5 JUN 20 86 CALL buy $2.010 long
2020-06-02 10:39:46 5 JUN 20 86 CALL buy $1.620 long
2020-06-02 10:46:48 5 JUN 20 86 CALL sell $1.700 long
2020-06-02 12:10:50 5 JUN 20 86 CALL buy $1.350 long
2020-06-02 15:31:14 5 JUN 20 86 CALL sell $1.210 0


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