AMZN Trade on Dec 1, 2020 10:11 from tradelikelarry: Tradervue User Stock Trades.

Trade Planning:

• Daily Chart: Uptrend, Consolidation below recent highs.
• TTM Squeeze: N/A
• Potential Profit: $130
• Potential Loss: $370

Reason For Entry:

• Playing the Daily chart, Put Credit Spread. Price found support at a new support level which was previous resistance. Entered the trade at the buy zone (at the 21 EMA area) and our profit level is at a previous support level well below current price action. We are betting that price action stays above the $3115 level by expiration on Friday.

Reason For Exit:

• Two days later we were up +85% on the trade and I closed the PCS for the win. I closed 1 day before expiration but I wanted to lock in the win in advance as the market was turning red and due for a pull back.

Recap:

• The setup was correct as price action was consolidating at a new support level below recent highs. We entered the PCS at the buy zone which is the 21 EMA area. Two days later the Theta worked in our favor and was up 85% on the trade as price action stayed flat. Closed the trade for the 85% win or +$111. This is a great example to show that you can profit nicely on Put Credit Spreads even if price action does absolutely nothing and stays horizontal.