NKLA Trade on Jul 1, 2020 15:28 from tradelikelarry: Tradervue User Stock Trades.

Trade Planning:

• Daily Chart: Uptrend, Consolidation below ATH.
• TTM Squeeze: none
• Earnings Date: N/A
• IV: 172%
• Potential Profit: $830
• Potential Loss: $170

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. Betting that NKLA closes above $65 by 7/17.

Reason For Exit:

• Expiration is tomorrow and price action on NKLA is consolidating well below our profit area. I closed the trade for a small loss as I was risking less than 1% of my portfolio on the initial trade.

Recap:

• There was not a valid setup in this trade but only a really nice risk to reward in terms of capital. I was risking $170 to win $830 on this Put Credit Spread. Unfortunately, price action did not work in my favor as it was consolidating well below my profit area. I closed the trade for a small loss as I was risking less than 1% of my portfolio on the initial trade. These trades are rare and somewhat a gamble with a manageable risk. On to the next one.