AMZN Trade on Dec 22, 2020 11:50 from tradelikelarry: Tradervue User Stock Trades.

Trade Planning:

• Daily Chart: Uptrend, Consolidation below ATH.
• TTM Squeeze: Daily
• Earnings Date: 1/28
• IV: 34%
• Potential Profit: $294
• Potential Loss: $706

Reason For Entry:

• Playing the Daily chart, Put Credit Spread. AMZN is in a pattern of consolidation below its ATH. We also have a TTM Squeeze on the daily and gaining momentum. We are entering just above the 8 and 21 EMA and Betting that price action makes a move to new highs or consolidates above our profit level by expiration.

Reason For Exit:

• Price action made a move out of consolidation to new highs and we locked in the win for 74% of the premium received (+$214).

Recap:

• The pattern was correct as price action was in a pattern of consolidation below its ATH. We also had a TTM Squeeze on the daily and gaining momentum. Our profit level was in line with the lower trendline that is drawn in the picture. We were betting that price action would either make a move to new highs or consolidate over our profit level by expiration. Price action ended up making a move to new highs prior to expiration so we closed the position for +74% of the premium received or +$214. Nice trade overall.