WMT Trade on Aug 17, 2020 15:23 from tradelikelarry: Tradervue User Stock Trades.

Trade Planning:

• Daily Chart: Uptrend, Consolidation below recent ATH.
• TTM Squeeze: Daily
• Earnings Date: 8/18
• IV: 50%
• Potential Profit: $40
• Potential Loss: $160

Reason For Entry:

• Playing the daily chart, Put Credit Spread. This trade was a signal from Omega Options Trading. Nice risk to reward in terms of chart analysis. The profit level is well below the 20 MA (which is a key support level). Earnings will be released tomorrow and expecting good results due to increased selling during the covid era. Risking less than 1% of my portfolio on this trade.

Reason For Exit:

• After earnings, price action fell below the 8 EMA. To minimize the risk, I closed the trade for about a 45% win.

Recap:

• The setup was correct with a nice risk to reward in terms of the profit level below a key support area. Price action fell below the 8 EMA a couple days before expiration so I closed the trade and locked in the with for about 45% of the premium. Nice small win overall.