Shared by
tradelikelarry
Trade Planning:
- Daily Chart: Uptrend, Consolidation below ATH.
- TTM Squeeze: None
- Earnings Date: 5/25
- IV: 71%
- Potential Profit: $430
- Potential Loss: $570
Reason For Entry:
- Playing the Daily chart, Put Credit Spread. Entering in a symmetry support level compared to the pull back in Jan 2021. Expiration is over 1 month away and risk to reward is around 1:1.
Reason For Exit:
- Price action moved higher and took over the 21 EMA and 50 SMA. Closed the trade for a 46% win.
Recap:
-
The setup was correct as price action was at a symmetry level compared to the pullback in Jan 2021. The PCS had an expiration over 1 month away (4/16) and risk to reward was around 1:1. Three trading days later, price action took over the 21 EMA and 50 SMA. Closed the trade for a 46% win. Nice trade overall.
Execution detail:
| Date/time | Symbol | Side | Price | Position |
|---|---|---|---|---|
| 2021-03-09 09:38:07 | 16 APR 21 240 PUT | buy | $14.480 | long |
| 2021-03-09 09:38:07 | 16 APR 21 250 PUT | sell | $18.780 | short |
| 2021-03-12 15:45:53 | 16 APR 21 240 PUT | sell | $6.200 | 0 |
| 2021-03-12 15:45:53 | 16 APR 21 250 PUT | buy | $8.530 | 0 |
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