TGT Trade on Jun 11, 2020 15:32 from tradelikelarry: Tradervue User Stock Trades.

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Trade Planning:

  • Daily Chart: Uptrend, Consolidation below recent highs.
  • TTM Squeeze: Daily
  • Earnings Date: 8/19

Reason For Entry:

  • Playing daily chart, Put Credit Spread. TGT is in a pattern of consolidation below recent highs. Price Retraced to the bottom of the buy zone and I executed a PCS risking 1% of portfolio. Watching for TGT to continue to new highs.

Reason For Exit:

  • I exited 1/3 position 1 day before expiration to reduce exposure as price action was consolidating below my breakeven point (light blue dotted line). Price action consolidated up to the expiration date in which it closed over the $120 level. The Put Credit Spread expired worthless and I collected 100% of the premium for the win.

Recap:

  • The pattern was correct as price action was consolidating below its recent highs. Entry was at the buy zone (at the 21ema level). I held the position through expiration as price closed over the $120 level leading the PCS to expire worthless as I collected 100% of the premium for the win. NOTE: It is wise that when entering these Credit Spread plays that the break even point is below the initial entry. This increases your chances of profiting on the trade. On this example, my entry (red arrow) was in line with the break even point (light blue dotted line). I will have better entries moving forward. image

Execution detail:

Date/time Symbol Side Price Position
2020-06-11 15:32:53 19 JUN 20 120 PUT sell $3.160 short
2020-06-11 15:32:53 19 JUN 20 118 PUT buy $2.230 long
2020-06-18 11:56:47 19 JUN 20 118 PUT sell $0.9900 long
2020-06-18 11:56:47 19 JUN 20 120 PUT buy $2.390 short
2020-06-19 10:32:25 19 JUN 20 118 PUT sell $0.1500 long
2020-06-19 10:32:25 19 JUN 20 120 PUT buy $0.8000 short
2020-06-20 08:04:30 19 JUN 20 120 PUT buy $0.0000 0
2020-06-20 10:22:34 19 JUN 20 118 PUT sell $0.0000 0


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