BA Trade on Jun 24, 2020 15:10 from tradelikelarry: Tradervue User Stock Trades.

Trade Planning:

• Daily Chart: Uptrend, Consolidation below recent highs.
• TTM Squeeze: Daily
• Earnings Date: 7/22
• IV: 74%
• Potential Profit: $100
• Potential Loss: $150

Reason For Entry:

• Playing the Daily chart, Put Credit Spread. Basically playing a day trade here by choosing options that expire in 2 days. BA is approaching a support area and looking for a bounce. Very risky play because the support has not been confirmed but its at a key support level historically. Limited risk on this trade but risky.

Reason For Exit:

• BA broke yesterdays low (support level) and market is red on the day. These options expire at the end of the day so I closed the position for a loss. (Less than 1% of portfolio loss).

Recap:

• This was a risky trade from the start. Options that expire in 2 days, and not a valid setup (no TTM Squeeze). The one thing I did correctly was position size VERY SMALL. I risked less than 1% of my portfolio on this day trade. The entry was at a support level (21ema) and my breakeven point was below my entry (which is correct per the plan). BA worked its way below my stop out level and I closed the trade for a small loss. I am not too excited about these day trades and will limit myself to them as it is not my specialty. One thing I will add is that if I plan to trade another (day trade), I will play it very small AND make sure there is a valid setup with a confirmed bounce off support. **_Most likely wont be playing these much though_.**