RH Trade on Jun 29, 2020 12:19 from tradelikelarry: Tradervue User Stock Trades.

Trade Planning:

• Daily Chart: Uptrend, Consolidation below its ATH.
• TTM Squeeze: Daily
• Earnings Date: 9/3
• IV: 62.5%
• Potential Profit: $210
• Potential Loss: $290

Reason For Entry:

• Playing the Daily chart, Put Credit Spread. RH is in a pattern of consolidation below its ATH. TTM is in a squeeze, short float is 22% and IV at 62.5%. I executed a PCS at the buy zone (between the 8ema and 21ema), break even level is well below the entry and risking 1% of portfolio. Watching for RH to continue its uptrend to new ATHs.

Reason For Exit:

• Price action on RH worked its way up to the Fibonacci 127.2% level and I closed the trade for a 85% win.

Recap:

• The pattern was correct as price action was consolidating below its ATH. Executed a Put Credit Spread at the buy zone (21EMA) and risked 1% of portfolio. Price action worked its way up to the Fibonacci 127.2% level and I closed the trade for a nice 85% win. I could have held the trade 4 more days for max profit but I wanted to lock in the win in this uncertain market.