2-4-2019 – $X

Stock Overview: $X was an earnings loser, but based on valuation & overall market strength the stock has been range bound.

Market Overview: The market opened up slightly red after last weeks huge move higher. Expecting more chop this week.

Technicals: At the time of the trade the market was red and $X was green. The daily prior high was 22.62, prior low 21.61. Weekly prior high 22.86, prior low 19.95.  The stock opened up lower with the rest of the market & was immediately bid up green.

Trade: The trade was buying puts on a punch through 22.50 risking 22.90 – above last weeks high. The target was VWAP @ 22.25

Summary: Entered the Feb 15th 24.50 monthly puts with stock at 22.52.  $X immediately shot up to 22.69, putting me red pretty quickly before finding sellers. Eventually $X retested VWAP 22.27 where I covered for a quick gain.

The main problem with the trade was entering too early. Given the prior daily high was 22.62 I really needed to get an entry in the 22.60s for a better risk reward.  The other error was not re-entering the same area risking HOD w/ VWAP target. The market strengthened so I decided against it.

  1. Daily Candle w/ Lower low Lower high – No
  2. Weekly Candle w/ Lower low Lower high – No
  3. Above 200 Day MA – No
  4. Red market – overall market & sector weakness – Yes

 

Result: – +.13 contract  (GAIN)

 

Trade Plan
Stop:$22.90
Entry: $22.52
Target: $22.25

Actual Exit: $22.27

Risking .38 to make .27

 

1 Year Trend: Lower
200 day: Below
100 Day: Below
50 Day: Below
Weekly Candle Low: 17.08
Weekly Candle High: 47.64
Average Daily Volume: 8.92M
Opening 10 Min Volume: 861K
52 Week High: 68.98
52 Week Low: 47.37
Short Interest: 8.26%

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