FB - 4/17 expiry 170 strike PUTS - set profit and loss targets

2020年4月13日

Daily chart context - 4/9 candle is almost an inverted hammer (there is a short wick on top) and today opened lower. Stochastic reached up to 98 but RSI is lagging and still under 55. I may hold a few contracts overnight and look for RSI to be lower by today's close.

On the hourly chart, I see:
* higher lows in price while stochastic %K went lower (aqua line)
* higher highs in price while RSI went lower (light orange line)
* yellow rectangle shows three bearish signals, look at red candles - 1) bearish engulfing candle, 2) an almost bearish engulfing candle (missed by 2 cents), 3) a bearish reversal in which today's candle opened lower than previous green candle body

15 min chart - I will be checking this for support of my trade idea. Moving averages are still above cloud.

2020年4月13日

交易進行

Bought weekly 170 puts for $2.38
Stop loss = FB over 174, option price at $1.80
Profit targets = 168.40, 166.50, 161

2020年4月13日

註釋

Looking at Directional Moving Index on multiple time frames, I think this move up lacks buying strength, and it is due more to reduced selling (versus increased buying). On daily chart there are two candles with long bottom wicks, which gives support for more upside. The 60min chart does not support puts because price is over cloud, RSI is holding over 50, and moving averages are not sloping downward yet. This said, I still believe in the hourly chart divergence indications and bearish candle signals so I am holding some puts overnight, however caution is warranted due to mixed technical signals.

2020年4月14日

交易結束：達到停損點

Sold puts yesterday for $2.07 and $1.80 when above stops were reached.