FDX Trade on Dec 14, 2020 12:09 from tradelikelarry: Tradervue User Stock Trades.

Trade Planning:

• Daily Chart: Uptrend, Consolidation below ATH.
• TTM Squeeze: Daily
• Earnings Date: 12/17

Reason For Entry:

• Playing the Daily chart, Put Credit Spread. FDX reports earnings on 12/17 and we are betting that price action will maintain above our profit levels after earnings are released. The profit levels are ($255, $260 and $265).

Reason For Exit:

• Earnings were released and FDX beat. Price action ended up gapping down on good earnings. Fortunately, our profit level was well above price action after it gapped down and the PCS expired worthless at expiration and we collected 100% of the premium (332).

Recap:

• This was a Put Credit Spread earnings play. We were betting that price action would maintain above our profit levels ($255, $260 and $265) after earnings were released. FDX posted their earnings and they beat as we expected. Price action then gapped down and fortunately our profit levels were well above price action after its gap down. The PCS expired worthless on Friday and we collected 100% of the premium. This was a great Put Credit Spread example that price action can drop after your entry and you are still able to profit nicely.