NKLA Trade on Jun 22, 2020 16:31 from tradelikelarry: Tradervue User Stock Trades.

Trade Planning:

• Daily Chart: Uptrend, Consolidation below ATH.
• TTM Squeeze: none
• Earnings Date: N/A
• IV: 204%
• Potential Profit: $250
• Potential Loss: $150

Reason For Entry:

• Playing the Daily chart, Put Credit Spread. NKLA is in a pattern of consolidation below its ATH. Main reason why I executed this Put Credit Spread is that there is a nice pattern and the premium on this vertical spread is ridiculous. Very nice risk to reward. Risking less than 1% of my portfolio and potential profit of 2% of portfolio. These options expire in 4 days so we are watching for NKLA to close above $67 by end of day on Friday.

Reason For Exit:

• Options expire at the end of the day and NKLA is chopping around. Price action pulled back to the break even level and consolidated intraday. I closed the trade for a nice 76% win.

Recap:

• NKLA is in a pattern of consolidation below its ATH. Main reason why I executed this Put Credit Spread is that there is a nice pattern and the premium on this vertical spread is ridiculous. Very nice risk to reward. I executed a Put Credit Spread that would expire in 4 days after entry. NKLA chopped around on the day of expiration and consolidated at the break even level. I closed the trade for a nice 76% win. This trade adds to my assurance that Credit Spreads are high probability plays. For example, NKLA pretty much consolidated after my entry and STILL I profited 79% on this trade. Had I executed a naked Call Option, the THETA would have decayed the play and more than likely I would have closed the trade today for a significant loss.