SQ Trade on Jan 25, 2021 10:14 from tradelikelarry: Tradervue User Stock Trades.

Trade Planning:

• Daily Chart: Uptrend, Consolidation below ATH.
• TTM Squeeze: Daily
• Earnings Date: 2/23
• IV: 54%
• Potential Profit: $539
• Potential Loss: $1461

Reason For Entry:

• Playing the Daily chart, Put Credit Spread. SQ is in a pattern of consolidation below its ATH. Historically price action has honored the 50 SMA which is above our profit level. Betting that price will continue to consolidate or move to new ATH by expiration on 2/12.

Reason For Exit:

• SQ gapped up and I took advantage of the strong move to lock in profits for 63% of the premium received or +$336.

Recap:

• The setup was correct as SQ was in a pattern of consolidation below its ATH. After reviewing the chart, price action was honoring the 50 SMA which was above our profit levels. We were betting that price action would continue to consolidate or move to new ATHs by expiration on 2/12. SQ gapped up and I took advantage of the strong move to lock in profits for 63% of the premium received or +$336. Nice Put Credit Spread play overall.