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.
- Daily Candle w/ Lower low Lower high – No
- Weekly Candle w/ Lower low Lower high – No
- Above 200 Day MA – No
- Red market – overall market & sector weakness – Yes
Result: – +.13 contract (GAIN)
Actual Exit: $22.27
Risking .38 to make .27
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%