SHOP Trade on Aug 24, 2020 11:18 from tradelikelarry: Tradervue User Stock Trades.

Trade Planning:

• Daily Chart: Uptrend, Consolidation below ATH.
• TTM Squeeze: N/A
• Earnings Date: 10/29
• IV: 55%
• Potential Profit: $115
• Potential Loss: $385

Reason For Entry:

• Playing the Daily chart, Put Credit Spread. SHOP is in a pattern of consolidation below its ATH. I am taking advantage of its price action pullback this morning for a PCS. The profit level is below the 50 MA (historically strong support level). Betting that price action will stay above $940 by expiration next Friday.

Reason For Exit:

• 8/31 - closed the trade for 88% of the premium. Reducing my risk by locking in the win as price action continued to hold above the 21 EMA.

Recap:

• The setup was correct as price action consolidated below its ATH. I opened the Put Credit Spread in the buy zone (between the 21 EMA and the 50 SMA). I locked in the win for 88% of the premium received as price action held above the 21 EMA following my entry (5 trading days later). I could have held the position until Friday (4 more trading days) to collect the other 12% of the premium but I wanted to reduce my exposure and close the trade for the majority of the premium. I feel that I managed the trade correctly overall. Thoughts?.