Shared by
tradelikelarry
Trade Planning:
- Daily Chart: Uptrend, Consolidation below recent highs.
- TTM Squeeze: None
- Earnings Date: 9/8
- IV: 100%
- Potential Profit: $85
- Potential Loss: $915
Reason For Entry:
- Playing the Daily chart, Put Credit Spread. This is a signal from Omega Options Trading. Earnings play and the profit level is 17% below the entry.
Reason For Exit:
- Price action closed above our Target level at expiration and collected 100% of the premium.
Recap:
-
The setup was correct as we entered the PCS at the end of the day and set a profit level 17% below our entry. This was an earnings play and we were expecting good results. Positive earnings came out and price action gapped down (this is why its always tough to play earnings) fortunately we had a Put Credit Spread and our profit level was well below price action after the gap down. Price action held and we collected 100% of the premium at the close on Friday. Nice trade overall.
Execution detail:
| Date/time | Symbol | Side | Price | Position |
|---|---|---|---|---|
| 2020-09-08 13:13:51 | 11 SEP 20 295 PUT | buy | $1.180 | long |
| 2020-09-08 13:13:51 | 11 SEP 20 300 PUT | sell | $1.570 | short |
| 2020-09-08 15:59:26 | 11 SEP 20 295 PUT | buy | $1.540 | long |
| 2020-09-08 15:59:26 | 11 SEP 20 300 PUT | sell | $2.000 | short |
| 2020-09-12 07:24:32 | 11 SEP 20 300 PUT | buy | $0.0000 | 0 |
| 2020-09-12 07:57:34 | 11 SEP 20 295 PUT | sell | $0.0000 | 0 |
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