LULU Trade on Jun 30, 2020 13:41 from tradelikelarry: Tradervue User Stock Trades.

Trade Planning:

• Daily Chart: Uptrend, Consolidation below ATH.
• TTM Squeeze: Daily
• Earnings Date: 9/10
• IV: 45.7%
• Potential Profit: $210
• Potential Loss: $290

Reason For Entry:

• Playing the Daily chart, Put Credit Spread. LULU gapped up after good news following a nice pattern of consolidation below its ATH. I am basically betting that LULU will close over the $310 level by next week. These plays have been consistent as of late, good news is released and investors come in and move the stock higher. Risking 1% of my portfolio on this trade.

Reason For Exit:

• LULU closed over the $310 level that we bet on and the position expired worthless giving me a +100% win.

Recap:

• LULU gapped up after good news following a nice pattern of consolidation below its ATH. I executed a Put Credit Spread and was betting that LULU would close over the $310 level by expiration next week. I was also watching for a rally in price action after its gap higher. Price action pretty much did nothing and consolidated for 7 days. Its important to note that this was a Put Credit Spread, and since price consolidated all week and was able to close above the $310 level that I was betting on, my position expired worthless giving me a +100% win. These Put Credit Spreads really do give you a higher probability to profit compared to naked options and this trade is a solid example of that.