MSFT Trade on Sep 15, 2022 10:58 from bockr25: Tradervue User Stock Trades.

What I Entered:

1. Trade Pattern: Trend Continuation Trade Put
2. I bought 1 Jan 20 '23 $250 Put Contracts @ $19.40 at 9:58am CST
3. William's %R Overbought Trigger was perfect and had a strong candle breakdown through both the 7-Day SMA's on higher selling volume two days before entry
4. MSFT was in a very strong downtrend that respected the 7-Day SMA

Why I Entered It:

1. MSFT broke through the key $250 support level and seemed to be heading strongly in the bearish direction
2. All of the broad markets were dropping well into the trading day steadily
3. At the time of the trade, both the NASDAQ & MSFT individual charts were dropping strongly/showing weakness at key support levels/or, in MSFT's case, just broke through a key support level.
4. Open interest was very high, and the bid-ask spread was under 5%.

Initial Exit Strategy:

1. I placed Conditional Stop @ a price greater than or equal to $252.50 as I wanted to give the trade a little room to move if the price tried to cling or bounce back up to the $250 support level a little bit.

Room for Improvement:

1. This chart was a bit over-extended, to begin with, and I think I shouldn't have chased it as I did. Price was moving quicker than some other charts.
2. I think I should have let this trade play out a little more in hindsight, as I only gave it two-thirds of a trading day to really work. I could have adjusted with tighter stops and seen if it could break through this $245 support level in the coming days.

The Results: $85/4% Profit

1. I manually exited before market close Friday as broad markets and individual MSFT charts had a very strong price bounce back heading into the close. I also didn't like the more bullish hammer doji pattern that was forming on both NASDAQ & MSFT daily charts either.
2. I Ended up with a 4% profit on a trade I didn't really love to begin with, in hindsight. I took the victory and kept my winning streak alive. At the end of the day, that is more important than being too aggressive and giving all my profits back.
3. I think I made the right call getting out when I did, as MSFT continued to bounce back into the close (along with most of the market) and added another $1 back in post-market trading, which reclaimed what is looking like a potentially sticky support level
4. With a January expiration & overall negative macro conditions still existing, one could argue that I should have ridden out the bounce and been more patient. But I have recently given away great trades too many times in this weird back & fourth market environment and didn't want to get too greedy as that has typically led to losses for me. Better to come away unscathed than take too many chances.