CHGG Trade on Jun 10, 2020 15:32 from tradelikelarry: Tradervue User Stock Trades.

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Trade Planning:

  • Daily Chart: Uptrend, Consolidation below ATH.
  • TTM Squeeze: Daily
  • Earnings Date: 8/3

Reason For Entry:

  • Playing the daily chart, Put Credit Spread play. CHGG is in a pattern of consolidation below its ATH. Price action had faded to the bottom Bollinger Band and looks to have found a support level closing just above the 21ema. The TTM remains in a squeeze. I executed a PCS risking 1% of my portfolio and may add another 1% risk if price action stays above the 21ema over the next few trading days. Watching for CHGG to continue its uptrend to new ATHs.

Reason For Exit:

  • CHGG made a worked its way to a new ATH and closed the trade for a 59% win.

Recap:

  • The pattern was correct as price action was consolidating below its ATH. This was a Put Credit Spread so I was betting that the price would close above the $60 level by expiration on 7/17. Price consolidated for 4 days until making a move to a new ATH. I closed the trade for a 59% profit at the new all time high level. Note that you don't need to hold these Credit Spreads until expiration, I held this position for 9 days before closing it in for a nice profit. image

Execution detail:

Date/time Symbol Side Price Position
2020-06-10 15:32:41 17 JUL 20 60 PUT sell $4.570 short
2020-06-10 15:32:41 17 JUL 20 55 PUT buy $2.420 long
2020-06-19 10:54:50 17 JUL 20 60 PUT buy $1.590 0
2020-06-19 10:54:50 17 JUL 20 55 PUT sell $0.7000 0


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