Shared by
tradelikelarry
Trade Planning:
- Daily Chart: Uptrend, Consolidation below its ATH.
- TTM Squeeze: Daily
- Earnings Date: 1/7
- IV: 62%
- Potential Profit: $210
- Potential Loss: $3384
Reason For Entry:
- Playing the Daily chart, Put Credit Spread. MU reports earnings later this week. MU has been trending up leading up to earnings. I’m expecting flat to uptrend reaction to earnings. IV is over 60% and were taking a position with over 10% cushion.
Reason For Exit:
- MU reported earnings and maintained above our profit levels. The PCS expired worthless and we collected 100% of the premium $210.
Recap:
-
This was an earnings Put Credit Spread play. MU reported earnings a few days following our entry and had been trending up leading up to the earnings release. We expected flat to uptrend reaction to the earnings. Earnings were released and price action maintained above our profit levels. We then collected 100% of the premium +$210.
Execution detail:
| Date/time | Symbol | Side | Price | Position |
|---|---|---|---|---|
| 2021-01-04 14:10:54 | 8 JAN 21 67 PUT | sell | $0.4500 | short |
| 2021-01-04 14:10:54 | 8 JAN 21 64 PUT | buy | $0.1900 | long |
| 2021-01-04 14:10:54 | 8 JAN 21 67 PUT | sell | $0.4500 | short |
| 2021-01-04 14:10:54 | 8 JAN 21 64 PUT | buy | $0.1900 | long |
| 2021-01-05 13:51:57 | 8 JAN 21 68 PUT | sell | $0.2400 | short |
| 2021-01-05 13:51:57 | 8 JAN 21 65 PUT | buy | $0.1100 | long |
| 2021-01-05 13:51:57 | 8 JAN 21 68 PUT | sell | $0.2400 | short |
| 2021-01-05 13:51:57 | 8 JAN 21 65 PUT | buy | $0.1100 | long |
| 2021-01-05 14:01:12 | 8 JAN 21 68 PUT | sell | $0.2400 | short |
| 2021-01-05 14:01:12 | 8 JAN 21 65 PUT | buy | $0.1000 | long |
| 2021-01-05 15:07:02 | 8 JAN 21 68 PUT | sell | $0.2600 | short |
| 2021-01-05 15:07:02 | 8 JAN 21 65 PUT | buy | $0.1200 | long |
| 2021-01-09 07:11:49 | 8 JAN 21 67 PUT | buy | $0.0000 | 0 |
| 2021-01-09 07:13:29 | 8 JAN 21 68 PUT | buy | $0.0000 | 0 |
| 2021-01-09 07:36:03 | 8 JAN 21 64 PUT | sell | $0.0000 | 0 |
| 2021-01-09 07:36:12 | 8 JAN 21 65 PUT | sell | $0.0000 | 0 |
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