WKHS Trade on Aug 5, 2020 13:45 from tradelikelarry: Tradervue User Stock Trades.

Trade Planning:

• Daily Chart: Uptrend, Consolidation below ATH.
• TTM Squeeze: Daily
• Earnings Date: 8/10
• IV: 139%
• Potential Profit: $112
• Potential Loss: $238

Reason For Entry:

• Playing the Daily chart, Put Credit Spread. WKHS is in a pattern of consolidation below its ATH. TTM is in a squeeze and momentum is shifting positive. Betting that price action will close above $16.50 by expiration on Friday of this week.

Reason For Exit:

• 8/7 Price action closed above our higher strike ($16.50) and expired worthless collecting 100% of the premium (+$112).

Recap:

• This is a great example of why Credit Spreads are high probability trades. When trading Put Credit Spreads, the trader can profit in three ways. 1) Price action can increase. 2) Price action can do nothing and stay level. 3) Price action can decrease a bit and still profit. In this example, I entered the trade (green arrow) and 2 days later price action decreased (red arrow) and was still able to collect 100% of the premium +$112. This is one of several strategies that we teach in our Discord.