AMC Trade on Oct 19, 2020 15:59 from tjmiller2001: Tradervue User Stock Trades.

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tjmiller2001

 

Entered call at end of day as name showed strength with a fundamental news catalyst. Tight stop and strong entry make this a 5:1 RR swing trade. Low IV Percentile on contracts made me more pleased with this trade.

This is not my typical, "buy at support" swing. Here I am trying a momentum strategy with the previous day's LOD acting as my stop.


Name gapped down premarket on news that the company might go bankrupt. This position was not hedged so I lost a decent amount quickly.

Lesson Learned: Keep experimenting with momentum trades, but use shares instead of options contracts next time. This strategy is new to you, so size down and limit your risk until you're comfortable with it.


Execution detail:

Date/time Symbol Side Price Position
2020-10-19 15:59:47 19 MAR 21 2 CALL buy $1.710 long
2020-10-20 14:08:42 19 MAR 21 2 CALL sell $1.290 0


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