$COST ~ COSTCO~ SHORT SETUP USING PUT SPREAD~ #OptionsTrading

2019年12月16日

METHOD: Short COSTCO {price at entry ~ 292} via:

• +2 VERTICAL COST 100 (Weeklys) 27 DEC 19 300/292.5 PUT @5.00 ;
  
• Trading @ low IV after the earnings dump;
  
• Decay helps if price < 294;
  
• Sold high extrinsic put to buy high intrinsic put
  

STRATEGIES: Using COST day chart:

• The 20/50 Mean looks set to make a big pink cloud after a long chart runup.
  
• The Fisher Transform line signaling a continuation short.
  
• The last earnings bailing of stock price turned out to last a few days.
  

TACTICS: The plan in terms of stock price:

• STOP is price > 295 (MUST OBEY, Upside down R:R trade)
  
• TGT1 288 to scale; TGT2 286.25 to exit (NO EARLY EXIT, Upside down R:R trade)
  
• Consider scaling as pink cloud becomes large
  
• We may let the Fisher Transform and 20/50 mean together take us out technically for whatever we get win or lose.
  

Will update in comments,
B3
d^.^b

2019年12月16日

交易進行

Was able to get a better price than expected, 4.60 instead of 5.00. Stop raised to 296 due to slightly better R:R now, which STILL means this trade works immediately or is exited.

2019年12月30日

取消訂單

Sideways action brings need to put the money to work elsewhere.

2019年12月30日

手動結束交易