Shared by
tradelikelarry
Trade Planning:
- Daily Chart: Uptrend, Consolidation below ATH.
- TTM Squeeze: Daily
- Earnings Date: 8/4
- IV: 66.8%
- Potential Profit: $205
- Potential Loss: $295
Reason For Entry:
- Playing the Daily chart, Put Credit Spread. TWLO is developing a nice 3 and 8 EMA cross over the 20 SMA with increased volume. Price action bounced off of a key support level and watching to continue to new ATHs. Earnings are on 8/4 so we are also watching for a move up to its earnings release.
Reason For Exit:
- Price action made a strong move to new ATHs and I locked in the win for a 66% win.
Recap:
-
The pattern and entry were correct as price action bounced off of a key support area (20 SMA) and the 3 EMA crossed over the 8 EMA showing strength. I executed a Put Credit Spread with the intentions to hold up to its earnings date on 8/4. After 1 day, price action made a strong move to new ATHs and I decided to lock in the win for a +66% profit of the premium. Nice trade overall.
Execution detail:
| Date/time | Symbol | Side | Price | Position |
|---|---|---|---|---|
| 2020-07-17 14:30:33 | 31 JUL 20 225 PUT | buy | $6.360 | long |
| 2020-07-17 14:30:33 | 31 JUL 20 230 PUT | sell | $8.410 | short |
| 2020-07-20 11:41:24 | 31 JUL 20 230 PUT | buy | $2.750 | 0 |
| 2020-07-20 11:41:24 | 31 JUL 20 225 PUT | sell | $2.050 | 0 |
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