COST Trade on Dec 10, 2020 14:45 from thefudawg: Tradervue User Stock Trades.

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thefudawg

 

COST historically does not move much after earnings (usually priced in pretty well). We're currently sitting right at POC $373 and the daily 21 EMA $372 and bouncing between the 2 the whole day. With earnings today and it perfectly being a Thursday - premiums will be crushed tomorrow since it will be 0DTE. Market makers priced in a $9.53 move for earnings and $10.74 for the entire week. Sitting at $372, the outer legs of $387.5 and $362.5 should cover it. Keeping it at $375 made sense for a slight bullish exposure since COST has been doing great this year. In the last 30 minutes, we started to see some ramp up to the opening range breakout of today ($375) which is perfect for the iron butterfly $362.5/$375/$375/$387.5 so $12.50 of room on each side to risk each $5 to make $7.42.

This thesis fits in perfectly too with SPX roll week and a lot of names getting pinned down through much of Thursday.

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The thesis unfolded almost perfectly, COST actually held perfectly near the $375 level all-day. Closed this trade for 73% max profit or +110% of what I risked. Exited this trade with about another $1 on the table, but I was ready to kick off the weekend.

Grade: A+
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Execution detail:

Date/time Symbol Side Price Position
2020-12-10 14:45:23 DEC11 20 362.5 PUT buy $1.250 long
2020-12-10 14:45:23 DEC11 20 375 PUT sell $5.920 short
2020-12-10 14:45:23 DEC11 20 387.5 CALL buy $1.070 long
2020-12-10 14:45:23 DEC11 20 375 CALL sell $3.830 short
2020-12-11 12:36:38 DEC11 20 387.5 CALL sell $0.0300 long
2020-12-11 12:36:38 DEC11 20 362.5 PUT sell $0.0400 long
2020-12-11 12:36:38 DEC11 20 375 CALL buy $0.8200 short
2020-12-11 12:36:38 DEC11 20 375 PUT buy $2.250 short
2020-12-11 15:19:31 DEC11 20 362.5 PUT sell $0.0300 long
2020-12-11 15:19:31 DEC11 20 375 CALL buy $2.130 short
2020-12-11 15:19:31 DEC11 20 375 PUT buy $0.1900 short
2020-12-11 15:19:31 DEC11 20 387.5 CALL sell $0.0200 long
2020-12-11 15:19:31 DEC11 20 362.5 PUT sell $0.0200 long
2020-12-11 15:19:31 DEC11 20 375 CALL buy $2.110 short
2020-12-11 15:19:31 DEC11 20 375 PUT buy $0.2000 short
2020-12-11 15:19:31 DEC11 20 387.5 CALL sell $0.0200 long
2020-12-11 15:19:32 DEC11 20 362.5 PUT sell $0.0300 long
2020-12-11 15:19:32 DEC11 20 375 CALL buy $2.100 short
2020-12-11 15:19:32 DEC11 20 375 PUT buy $0.2100 short
2020-12-11 15:19:32 DEC11 20 387.5 CALL sell $0.0100 long
2020-12-11 15:20:30 DEC11 20 375 CALL buy $1.990 short
2020-12-11 15:20:30 DEC11 20 375 PUT buy $0.2400 short
2020-12-11 15:20:30 DEC11 20 387.5 CALL sell $0.0100 long
2020-12-11 15:20:30 DEC11 20 362.5 PUT sell $0.0100 long
2020-12-11 15:20:30 DEC11 20 375 CALL buy $1.990 short
2020-12-11 15:20:30 DEC11 20 375 PUT buy $0.2400 short
2020-12-11 15:20:30 DEC11 20 387.5 CALL sell $0.0100 long
2020-12-11 15:20:30 DEC11 20 362.5 PUT sell $0.0100 long
2020-12-11 15:20:51 DEC11 20 375 CALL buy $2.000 short
2020-12-11 15:20:51 DEC11 20 387.5 CALL sell $0.0200 long
2020-12-11 15:20:51 DEC11 20 375 PUT buy $0.2400 short
2020-12-11 15:20:51 DEC11 20 362.5 PUT sell $0.0100 long
2020-12-11 15:20:51 DEC11 20 375 CALL buy $2.060 0
2020-12-11 15:20:51 DEC11 20 387.5 CALL sell $0.0400 0
2020-12-11 15:20:51 DEC11 20 375 PUT buy $0.2300 0
2020-12-11 15:20:51 DEC11 20 362.5 PUT sell $0.0400 0

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