NFLX Trade on Aug 24, 2020 15:45 from tradelikelarry: Tradervue User Stock Trades.

Trade Planning:

• Daily Chart: Uptrend, Consolidation below ATH.
• TTM Squeeze: N/A
• Earnings Date: 10/16
• IV: 41%
• Potential Profit: $115
• Potential Loss: $385

Reason For Entry:

• Playing the Daily chart, Put Credit Spread. NFLX is in a pattern of consolidation below its ATH. Price action retraced to the 50 MA (historically strong support) and I executed a Put Credit Spread at that level. The profit level is below the 50 MA at a key support area. Betting that price action will close above $465 by expiration next Friday.

Reason For Exit:

• After 2 days, NFLX popped and I closed the PCS for 88% of the premium.

Recap:

• The Put Credit Spread setup was correct. I executed the trade at a key support level (50 MA) and the Target level (green horizontal line) was at another solid support level. I was betting that price action would stay above $465 by expiration next week. NFLX popped and I closed the trade prior to the expiration date for 88% of the premium. The reason why I chose a 2 week out expiration date was because of the higher premium value that it offers compared to the current week expiration options. Overall was a nice high probability trade.