RH Trade on Aug 24, 2020 11:10 from tradelikelarry: Tradervue User Stock Trades.

Trade Planning:

• Daily Chart: Uptrend, Consolidation below ATH.
• TTM Squeeze: N/A
• Earnings Date: 9/3
• IV: 55%
• Potential Profit: $151
• Potential Loss: $349

Reason For Entry:

• Playing the Daily chart, Put Credit Spread. RH is in a pattern of consolidation below its ATH. I am taking advantage of the pullback to the 8 EMA this morning and executed a PCS. Our profit level is just below the 20 MA (historically strong support level). We are betting that price action stays above $305 by expiration next week. 8/26 - added to my trade as price action is holding the 8 EMA.

Reason For Exit:

• Closed the trade for 80% of the premium or +$121.

Recap:

• The setup was correct as price action was honoring the 8 EMA and consolidating below its ATH. Executed a Put Credit Spread and the profit level was at a key support area below the 21 EMA. I risked about 1% of the portfolio on this trade. Within a few days price action hit a new ATH and I closed the trade for 80% of the premium received which was +$121. Overall was a nice trade.