1-31-2019 – $SBUX

Stock Overview: $SBUX was an earnings winner inching towards a new 52 week high.

Market Overview: Market has been on fire since the FED released “dovish” language Wednesday afternoon.

Technicals: Weekly and daily candles higher highs higher lows. Above key moving averages, market on fire and stock very close to fresh highs. This morning buyers stepped in again buying the brief morning dip.

Trade: The trade was buying calls after the opening chop session and a punch through top channel. $SBUX began trending higher about an hour after the opening bell above resistance. Bought the weekly ITM calls when the stock was trading at $68.69. risking a break below channel and the opening 10 min candle high (stop $68.39)

Summary: Entered weekly calls with stock at 68.69. SBUX continually churned higher after the top channel break. The stock was an earnings winner & positive developments on trade talks with China gave it a bid. Unfortunately Etrade Pro crashed and started giving me delayed quotes, pretty much tilting me out of the trade. I ended up closing out the trade before the second leg of the move even started missing out on .50 cents per contract. This was after I had to enter two separate options orders due to the software freezing. Basically I didn’t exit anywhere near my target (s) partial 69.05 / 69.55

  1. Daily Candle w/ Lower low Lower high – Yes
  2. Weekly Candle w/ Lower low Lower high – Yes
  3. Above 200 Day MA – Yes
  4. Green market – overall market & sector weakness – Yes

 

Result: – +.14 contract  (GAIN)

 

Trade Plan
Stop:$68.39
Entry: $68.69
Target: $69.05 / 69.55

Actual Exit: $68.85

Risking .30 to make .36/ .86

 

1 Year Trend: Higher
200 day: Above
100 Day: Above
50 Day: Above
Weekly Candle Low: 62.93
Weekly Candle High: 67.69
Average Daily Volume: 11.34M
Opening 10 Min Volume: 814K
52 Week High: 68.98
52 Week Low: 47.37
Short Interest: 3,22%

Leave a Reply

Your email address will not be published. Required fields are marked *