FUTU Trade on Dec 22, 2020 10:00 from tradelikelarry: Tradervue User Stock Trades.

Trade Planning:

• Daily Chart: Uptrend, Consolidation below ATH.
• TTM Squeeze: Daily
• Earnings Date: 2/18
• IV: 88%
• Potential Profit: $360
• Potential Loss: $640

Reason For Entry:

• Playing the Daily chart, Put Credit Spread. Price action is in a pattern of consolidation below its ATH. TTM is in a squeeze and gaining momentum. We are betting that FUTU will continue to new ATHs or maintain above our profit level ($40) by expiration (1/18).

Reason For Exit:

• FUTU made a strong move higher prior to expiration and we took advantage of the higher move by closing the position to lock in a +63% win or (+$224).

Recap:

• The pattern was correct as price action was in a pattern of consolidation below its ATH and we also had a TTM Squeeze on the Daily as momentum was shifting positive. Our Put Credit Spread profit level was in line with the lower Bollinger Band which is also a solid support level. Following our entry price action dipped lower and took out many traders stops (panic selling). The TTM was still in a squeeze and the pattern was still valid so we continued to hold our position. A few days after, price action made a strong move higher and we closed the position for a nice +63% win or (+$224). Patience was key in this trade while also trusting the pattern even when price action temporarily went against us. Nice trade overall.