20 JAN 348/ 27 JAN 358 DIAGONAL PUT
Updated
Low Base Set Up:
Since December 13th we've been selling off and the last 6 days we've been in a low base. It's had lower or equal volume and it traded below the consolidating low of about 378ish on the 22nd. Overall market sentiment is bearish with the 20 day looking to cross the 50 day
The candle on the 22nd of December was used as my entry point/trigger. The consolidating lows were about 378ish.
I will not have any stops. Set up for max loss risking less than 2% of my portfolio.
348.11 target was determined because this was the low of October 13th. I wanna give this enough time so my time frame is going to be 4 weeks. If this decided to have a year end rally, I'll still have enough time for this trade to work. Plus I'm already hedged short term if we do get a end of the year rally.
If this goes lower... below 348, I'll watch it come expiration week to see where it's at. But I may want to just close out the entire combo. I might also adjust my position...maybe get rid of my 348 strike and ride the 358 strike depending on volatility in the coming weeks.
If this goes sideways, I'm set up for max loss.
If this goes higher this week and a little into early next week (as this could happen), I'll still have enough time for it to continue down to my target. And I'll be set up for max loss.
If we are well below my 348 target by expiration, I'll close out the entire combo.
Since December 13th we've been selling off and the last 6 days we've been in a low base. It's had lower or equal volume and it traded below the consolidating low of about 378ish on the 22nd. Overall market sentiment is bearish with the 20 day looking to cross the 50 day
The candle on the 22nd of December was used as my entry point/trigger. The consolidating lows were about 378ish.
I will not have any stops. Set up for max loss risking less than 2% of my portfolio.
348.11 target was determined because this was the low of October 13th. I wanna give this enough time so my time frame is going to be 4 weeks. If this decided to have a year end rally, I'll still have enough time for this trade to work. Plus I'm already hedged short term if we do get a end of the year rally.
If this goes lower... below 348, I'll watch it come expiration week to see where it's at. But I may want to just close out the entire combo. I might also adjust my position...maybe get rid of my 348 strike and ride the 358 strike depending on volatility in the coming weeks.
If this goes sideways, I'm set up for max loss.
If this goes higher this week and a little into early next week (as this could happen), I'll still have enough time for it to continue down to my target. And I'll be set up for max loss.
If we are well below my 348 target by expiration, I'll close out the entire combo.
Trade active
Note
Letting my 348 strike expire worthless. Hanging on to my 358 strike until next Friday since we did not reach target today.Trade closed manually
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