AMZN Trade on Oct 29, 2020 15:15 from tradelikelarry: Tradervue User Stock Trades.

Trade Planning:

• Daily Chart: Uptrend, Consolidation below recent highs.
• Potential Profit: $134
• Potential Loss: $1866

Reason For Entry:

• Playing the Daily chart, Put Credit Spread. Entered the trade at the cluster (50 MA and 20 MA) leading up to an earnings release. Our profit level is well below current price action and at a key support level.

Reason For Exit:

• Earnings were released and price action flushed out. Price action did stay above our profit level at expiration and we collected 100% of the premium.

Recap:

• The is a key example that you can profit on your bullish Put Credit Spread even if price action drops after your initial entry. In this case, we entered the trade at a key support level leading up to an earnings release. After earnings were released, price action flushed out but still held above our profit level (green horizontal line). We then collected 100% of the premium at expiration.