Z Trade on Jun 24, 2020 13:54 from tradelikelarry: Tradervue User Stock Trades.

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tradelikelarry

 

Trade Planning:

  • Daily Chart: Uptrend, Consolidation below ATH.
  • TTM Squeeze: Daily
  • Earnings Date: 8/6
  • IV: 68%
  • Potential Profit: $210
  • Potential Loss: $290

Reason For Entry:

  • Playing the daily chart, Put Credit Spread. Z is in a pattern of consolidation below its ATH. TTM is in a squeeze for 4 days now. Executed a PCS at the buy zone (8ema), break even point is below my entry at the support level (21ema). Risking less than 1% of portfolio. Watching for Z to continue to new ATHs.

Reason For Exit:

  • Z worked its way up to the Fibonacci 78.6% level and I closed the trade for a +50% win.

Recap:

  • The pattern was correct as price consolidated below recent highs at the 21ema level. The TTM was in a squeeze and short float was 22%. Watching for a continuation to new ATHs, I executed a PCS risking about 1% of my portfolio. Price action consolidated after the entry and even decreased a bit but held the TTM squeeze. Z then worked its way up to the Fibonacci 78.6% level and I closed my position for a +50% win. Nice trade overall. image

Execution detail:

Date/time Symbol Side Price Position
2020-06-24 13:54:20 17 JUL 20 55 PUT buy $1.970 long
2020-06-24 13:54:20 17 JUL 20 60 PUT sell $4.070 short
2020-07-06 12:07:35 17 JUL 20 60 PUT buy $1.470 0
2020-07-06 12:07:35 17 JUL 20 55 PUT sell $0.4200 0


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