TSLA Trade on Aug 5, 2020 12:26 from tradelikelarry: Tradervue User Stock Trades.

Trade Planning:

• Daily Chart: Uptrend, Consolidation below ATH.
• TTM Squeeze: Daily
• Earnings Date: 10/22
• IV: 60.09%
• Potential Profit: $238
• Potential Loss: $262

Reason For Entry:

• Playing the Daily chart, Put Credit Spread. TSLA is in a pattern of consolidation below its ATH. TTM is in a squeeze and price action is hanging around the 20 MA area. Looking for a move to new highs.

Reason For Exit:

• TSLA faded below my stop out area. Closed the trade for a loss.

Recap:

• The setup was a pattern of consolidation below recent ATH and a TTM Squeeze. Executed a Put Credit Spread above the stop out area. Price action faded below my stop out area and closed the trade for a loss. Looking back on the trade I could have been more patient and executed the PCS on a further pull back to the stop out area and received a better risk to reward. One thing I did correctly was position size. Although this was a loss, the loss was less than 1% of my portfolio.