AMD Trade on Dec 31, 2020 11:11 from tradelikelarry: Tradervue User Stock Trades.

Trade Planning:

• Daily Chart: Uptrend, Consolidation below its ATH.
• TTM Squeeze: Daily
• Earnings Date: 1/26
• IV: 51%
• Potential Profit: $256
• Potential Loss: $744

Reason For Entry:

• Playing the Daily chart, Put Credit Spread. Price action is in a pattern of consolidation below its ATH. We also have a TTM squeeze on the daily which indicates momentum is building. Our profit level is in line with the 50 MA and we have a 5.2% cushion from current price action. We are betting that price action will continue higher to a new ATH or continue to consolidate over our profit level by expiration. The % win rate for this signal at current price is 84.5%.

Reason For Exit:

• Price action made a move to new all time highs 4 days before expiration. I went ahead and closed the trade for a 94% win or +$240.

Recap:

• The setup was correct as price action was in a pattern of consolidation below its ATH. We also had a TTM Squeeze on the daily which indicates that momentum is building. Our profit level was below 2 key support areas (50 SMA and lower Bollinger Band). We were betting that price action would continue to consolidate or make a move to new ATHs. Price action eventually made a move to new ATHs 4 days before expiration. We took advantage of this move and closed the trade for 94% of the premium received or +$240. Nice trade overall.