Description
TWTR remains in extended downtrend that began in FEB of this year. Began broadening formation in August that ended in a breakout to the downside of both the broadening formation and the major trendline that began in MAR of 20'
Long Put
Levels on Chart
SL on a daily close over the lower trendline in the broadening formation. This can happen and a short is still valid, but due to the nature of options this position will be a close-out and search for new entry.
*Stops based off underlying stock price, not mark to market loss
The Trade
BUY
11/12 53P
R/R & Breakevens vary on fill.
Manage Risk
Only invest what you are willing to lose
TWTR remains in extended downtrend that began in FEB of this year. Began broadening formation in August that ended in a breakout to the downside of both the broadening formation and the major trendline that began in MAR of 20'
Long Put
Levels on Chart
SL on a daily close over the lower trendline in the broadening formation. This can happen and a short is still valid, but due to the nature of options this position will be a close-out and search for new entry.
*Stops based off underlying stock price, not mark to market loss
The Trade
BUY
11/12 53P
R/R & Breakevens vary on fill.
Manage Risk
Only invest what you are willing to lose
Comment:
Filled at .47.
Trade closed manually:
Closed at .6, +28%.
Comment:
If I had caught the breakout of the broadening pattern on the day it happened, I would still be in this position.
At my entry, I was caught halfway through a pattern, which is a psychologically weak position to be in, so I took what profit posted.
Otherwise this was a strong pattern to trade the deteriorating market-breadth.
At my entry, I was caught halfway through a pattern, which is a psychologically weak position to be in, so I took what profit posted.
Otherwise this was a strong pattern to trade the deteriorating market-breadth.
