BA 190/170 May put vertical spreadTrade thesis
- technical breakout (bearish)
- downward break out of 3 months consolidation zone
- weekly stochastic showing more room to downside
- entry trigger: retest of demand zone and failure to hold above (wicked into the zone and closed below on daily)
Position
- strategy: put vertical
- structure:
long 05/19 190p
short 05/19 170p
- cost: $450
- delta: -19.68
- theta: -2.311
- gamma: 0.54
- vega: 10.15
Targets
- 1st target: $190.50 zone (previous gap fill)
- 2nd target: $173-169 zone
HVN from post covid to present
confluence of .5 retracement level from previous low to recent high
- SL target
technical: weekly close back into consolidation zone
discretionary: price action at key price levels
discretionary: price action when stochastic enters oversold level (below 20)