SNAP Trade on Jul 23, 2021 09:42 from Marius: Tradervue User Stock Trades.

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Marius

 

Global Markets opened the week with continued selling but was aggressively bought and brought to new ATH's EOW. Market is being supported by buyers, stronger earnings growths, and technology growth with declining treasury yields. It is however on breadth deteriorations with new highs on specific leaders.

Fundamentals In Play Analysis

Snap Inc. reported +0.11 EPS and 16% Revenue beat. They also issued Q3 sales guidance above estimate. DAU was higher in all regions of the on Y/Y basis. Spotlight daily active users grew 49% Y/Y and daily time per user in the US was also up 60% Q/Q. This as also seen with Twitter on their ER reported a the same time. A communications sector theme is confirmed in sympathy which is also adding buying sentiment in FB. FB reports next week. There were also several analyst coverage updates in Snap following the ER.

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Quantitative Analysis

Intraday Fundamentals

RVOL 5.87
AVOL 19.77M
ATR 3.73
Beta 1.27
Volatility 4.89% 4.28%
Short Float 4.05%
Shs Float 1.22B
Inst Own 62.20%
Market Cap 124.94B

Options Statistics + Tape Reading + Order Flow + Dark Pool Levels + Flow Sentiment

SI 12.555
IV 54.91%
IVP 13%
P/C 0.726
VWAP 76.98

Notable elevated order flow with concentration on the call A/AA side. There are also B/BB puts.
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This is a trade to hold bullish in 0DTE now reviewing the order flow. No notable puts 400k+ on any side. Sentiment was extremely bullish seeing this on the 07/23 contracts.
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Day one DP level at 77.97 but unusual BB DP print at 7:03AM. This was the high at the opening session. I had exited this trade after trading below VWAP and the opening consolidation range. The options contracts did have more actionable variable at this point.
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Day 1 capital sentiment flows.
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Options Positioning

OI 660/1338
VOL 2550/1276
Delta -.03/-.01
Theta -.06/-.02
Vega .00/.00
Gamma .02/.00
Prob T 7.38%/2.41%
Prob ITM 3.73%/1.22%
MMM +/- 3.052
IV Series 96.57%

Scalp option positioning was adequate and should have been re-entered on the test of 75 after initially getting flat.
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Earnings Statistics

Historical gap-up on ER has seen follow-through or sideways consolidation. Another point to have held onto the position.
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Technical Analysis

Significant gap-up over HTF resistance on elevating RVOL and decreasing IV.
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Re-test of 75 was above pre-market high. If there is another scenario where there is a strong earnings gap-up and sell-off after the opening momentum volume, the pullback needs to assessed. The volume was decreasing. This was a great area of support.
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Trade Risk + Position + Size + Allocation Management & Review

(A) setup as this a working playbook 0DTE trade. There is edge to be refined here and will be evaluating screen time on these plays. It does require me to be trading the open. This can be expanded onto trade more than 0DTE but is considered intraday. (B/C) execution as this should have been re-entered. I was not watching after getting flat so something to keep in mind. I was specifically looking for a trend trend play following the open.

Weekly Trading Review

Overall a good week of trading. The Market Play Trade in the beginning of the week is something I would take 9/10 times. It has worked remarkably well in the past so it is a playbook I will keep. Just need to act on those earlier variables in risk management. The remaining trades for this week was inline with my playbook and I put the trades on however my executions needs to refined as reviewed in each trade. This is probably related to the beginning of the week when I drew down. I shifted to more risk averse and decided to get out of trades at initial signs of risk on my positions. This is something I should have done on the first trade but not necessarily on the next trades. Still making the base hits to re-gain my trading focus. Next week will be another important week of earnings, central bank announcements, and economic reports.


Execution detail:

Date/time Symbol Side Price Position
2021-07-23 09:42:58 23 JUL 21 65 PUT buy $0.0100 long
2021-07-23 09:42:58 23 JUL 21 70 PUT sell $0.0800 short
2021-07-23 10:40:34 23 JUL 21 65 PUT sell $0.0200 0
2021-07-23 10:40:34 23 JUL 21 70 PUT buy $0.0600 0


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