Shared by
tradelikelarry
Trade Planning:
- Daily Chart: Uptrend, Consolidation below recent highs.
- TTM Squeeze: N/A
- Earnings Date: 10/29
- IV: 51%
- Potential Profit: $47
- Potential Loss: $453
Reason For Entry:
- Playing the Daily chart, Put Credit Spread. This signal is from Omega Options Trading, nice risk to reward in terms of a chart prospective. The break even level is below the 50 MA (historically solid support level). Betting that SHOP will close above $940 by expiration on Friday.
Reason For Exit:
- SHOP closed well over the profit level and expired worthless. I was able to collect 100% of the premium for a nice small win.
Recap:
-
The Put Credit Spread setup was correct as the profit level was at a key support level (50 MA) Price action was able to stay well above the profit level and I was able to collect 100% of the premium. Nice small win overall.
Execution detail:
| Date/time | Symbol | Side | Price | Position |
|---|---|---|---|---|
| 2020-08-18 11:51:56 | 21 AUG 20 940 PUT | sell | $2.750 | short |
| 2020-08-18 11:51:56 | 21 AUG 20 935 PUT | buy | $2.280 | long |
| 2020-08-22 09:22:55 | 21 AUG 20 940 PUT | buy | $0.0000 | 0 |
| 2020-08-22 10:24:00 | 21 AUG 20 935 PUT | sell | $0.0000 | 0 |
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