WMT Trade on Dec 18, 2020 11:05 from tradelikelarry: Tradervue User Stock Trades.

Trade Planning:

• Daily Chart: Uptrend, Consolidation below its ATH.
• TTM Squeeze: None
• Earnings Date: 2/16
• IV: 21%
• Potential Profit: $562
• Potential Loss: $1138

Reason For Entry:

• Playing the Daily chart, Put Credit Spread. Price action on WMT has historically honored the 50 MA and we are entering the PCS at that specific area. Our profit level ($144) is in line with the lower Bollinger Band and we are betting that price action will rebound from this area or maintain above our profit level by expiration on 1/8.

Reason For Exit:

• As we expected, price action consolidated and eventually overtook the 50 MA. The Put Credit Spread expired worthless and we collected 100% of the premium +$562.

Recap:

• The setup was correct as price action had historically honored the 50 MA (our entry area). After several trading days, price action consolidated and rebounded above the 50 MA. The Put Credit Spread expired worthless and we collected 100% of the premium +$562.