JNJ Trade on Jan 28, 2019 13:24 from kerobo0000: Tradervue User Stock Trades.

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kerobo0000

 

2019-01-29 01:53:05
-took entry on this as it has been consolidating sideways above support zone in the 126.50-128 range and the pivot zone in the 121-128 range
-on 1/24 price broke support zone and spiked down to 125 but it was swiftly rejected
-->could indicate buying support or the fact that market makers ran stops; a lot of buyers likely set stops just below support
-Friday's (1/25) daily candle was a hammer candle / long lower shadow (stock is in downtrend so this is bullish signal)
-today, the stock began making higher lows, then broke out above morning range -> initiated position on the restest of the top of morning range after the breakout
-the stock moved above the 8ma(daily)/50ma(hourly)
-the completed daily candle is bullish (green, big body, small upper wick, long lower wick)

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2019-02-01 01:02:25
-since entering 130C, NVDA rallied above the weekly LVN, restested it from above and continued toward the weekly HVN
-i've been monitoring the price of the 135 calls to look to reduce risk
-today the market rallied and JNJ broke above the HVN in a very bullish matter
-in hindsight, I should've scaled into the 130s a bit more or scalped further OTM calls around the core position instead of trying to find new names - JNJ had the strongest chart of all names on my watchlist today (there only one real pullback and it didn't come close to VWAP)
-max loss of -$28 and max upside of $970 if JNJ is above $135 by March expiration
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2019-02-17 15:32:25
-position is in the same place it was on 2/1; most likely due to the fact that JNJ has essentially traded sideways since then (on Friday it broke through the range put in from 2/1-2/14)
-given there are 26 DTE, the premium decay in the short calls should begin to accelerate around 21 DTE which will bring the position closer to max profit potential
-stock is right under its LVN; would like to see if break through it and retest, which might be a good opportunity to add on a few more calls and trade around this core call debit spread position

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2019-03-12 00:04:12
-closing out of this trade for a 35x risk/reward trade on a small two lot
-held into expiration week as it was clear JNJ would stay above 135 and I wanted to continue to collect positive theta
-there is no way I would be able to hold this long if I didn't sell calls and create debit spread
-on exit, I legged out, closing the short calls first as stock price bottomed in the morning and selling the long calls into strength when stock rallied around lunch time
-by legging out, I was able to make an additional +$111 as to a max profit of $930 on the call debit spread
-goals for next trade I structure in this manner is to sell weekly or front month options against core position

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Execution detail:

Date/time Symbol Side Price Position
2019-01-28 13:24:23 MAR15 19 130 CALL buy $2.360 long
2019-01-31 12:15:39 MAR15 19 135 CALL sell $2.220 short
2019-03-11 09:48:00 MAR15 19 135 CALL buy $3.430 0
2019-03-11 12:08:13 MAR15 19 130 CALL sell $8.550 long
2019-03-11 12:21:13 MAR15 19 130 CALL sell $9.000 0


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