DOCU Trade on Jul 20, 2020 11:48 from tradelikelarry: Tradervue User Stock Trades.

Trade Planning:

• Daily Chart: Uptrend, Consolidation below its ATH.
• TTM Squeeze: Daily
• Earnings Date: 9/3
• IV: 61%
• Potential Profit: $440
• Potential Loss: $560

Reason For Entry:

• Playing the Daily chart, Put Credit Spread. Entered DOCU following a 3 & 8 EMA cross over the 20 SMA. Price action is confirming a bounce off of a key support level. Watching for a move to new ATHs.

Reason For Exit:

• Out half of the position at the Target 1 area (+43% profit from the premium). Holding the second half for new ATH or until expiration for max profit. Closed second half position at a new ATH. Overall +58% profit of the premium.

Recap:

• Setup and entry were correct, entered trade following a 3 and 8 EMA cross over the 20 AM. Exited in 2 transactions, Target 1 was just below the ATH and Target 2 was a run to a new ATH. Overall was a 58% profit of the premium on the Put Credit Spread.