AMD Trade on Jan 25, 2021 12:15 from tradelikelarry: Tradervue User Stock Trades.

Trade Planning:

• Daily Chart: Uptrend, Consolidation below ATH.
• TTM Squeeze: Daily
• Earnings Date: 1/26
• IV: 96%
• Potential Profit: $190
• Potential Loss: $3108

Reason For Entry:

• Playing the Daily chart, Put Credit Spread. AMD reports earnings 1/26 after hours. We are expecting an earnings beat. IV is currently at 96% and we are taking a position with over 10% cushion.

Reason For Exit:

• Price action decreased following our entry but maintained above our profit level. The PCS expired worthless and we collected 100% of the premium.

Recap:

• Playing the Daily chart, Put Credit Spread. AMD reported earnings 4 days after our entry after hours (1/26). We were expecting an earnings beat. IV was currently at 96% and we were taking a position with over 10% cushion. Price action decreased following our entry but maintained above our profit level. The PCS expired worthless and we collected 100% of the premium. This is a great example that with Put Credit Spreads price action can decline following your entry and you can still profit nicely on the trade.