SHW Trade on Dec 8, 2020 15:44 from tradelikelarry: Tradervue User Stock Trades.

Trade Planning:

• Daily Chart: Uptrend, Consolidation below ATH.
• TTM Squeeze: Daily
• **Earnings Date: **
• IV: 27%
• Potential Profit: $240
• Potential Loss: $760

Reason For Entry:

• Playing the Daily chart, Put Credit Spread. SHW pulled back to a symmetry level ($710 area)and rebounded with a strong bullish candle. We entered the trade at the the cluster of MAs (8 EMA and 21 EMA) and betting that price action will maintain over the symmetry level by expiration on 12/18.

Reason For Exit:

• As we expected, price action held above the symmetry level and consolidated up to the expiration date. The PCS expired worthless and collected 100% of the premium.

Recap:

• This was a Put Credit Spread symmetry play. Symmetry is when you compare a pullback at one area of a chart and compare it to another. In this case, we measured the pull back from 10/10 - 10/26 and compared it to the recent pullback on the chart. We entered the trade after price action bounced from that specific level. Our profit level ($710) was in line with the symmetry level. Essentially, we were betting that price action would maintain above this level by expiration. Following our entry, price action did as we expected and consolidated well over our profit level. By expiration the PCS expired worthless and we collected 100% of the premium (+$240). Nice trade overall.