The set-up: Pattern Alteration Long - broke through 69-70 resistance with a strong confirmation day.
What I did Right: Entry was solid, and I was more patient than I usually am with this one, I waited for a full confirmation day. Managed risk to ensure solid return by changing up conditional stops and trailing stops on a daily basis.
What I did Wrong: Feeling pretty solid about this trade so far. Should I have given it a more flexible trailing stop with the duration of the option all the way out to December? Maybe?
Where I could improve: Watching charts a little more closely. Had some help pin-pointing things from my mentor with this chart that I may have missed otherwise (price dropped down to former resistance which became support, broke back up through 2 resistance levels strongly, and resistance level had some previous failed attempts which built up momentum of this potential breakout).
Trade grade: B+
Big-picture: Broad markets started off trading more bullish, and ended up more neutral/breakeven by the end of the day. But this chart still held its own strength, which was part of the reason for entry.
Trade parameters: Broke through 69-70 resistance past 2-days pretty strongly (had failed at this level 3 times previously), had very solid upward momentum maintained through the trading day on 8/11/2022.
Entry: 08/11/22 03:17 PM ET Buy 2 SCHW Dec 16 '22 $65 Call Executed @ $10.15
Trade Management: Placed initial Conditional Stop @ 69, right about 7-Day SMA once initial trade entered. After I was up 23%, I switched Conditional Stop to 73.25 to preserve profits. Intraday support Friday seemed to be at 73.50, so I went a little lower than that to give stock room to move over a $1.50 without triggering a stop out. Closed Friday @ $74.90/share.
Exit: Next level of resistance is probably 75 or 80, I will be watching these levels closely.
Broad markets started to shift to a much more bearish stance on 8/17/2022. The trailing stop was triggered after the price dropped more than 7.5% and I exited with a 30% return.
Execution detail:
Date/time | Symbol | Side | Price | Position |
---|---|---|---|---|
2022-08-11 15:17:00 | DEC16 22 65 CALL | buy | $10.150 | long |
2022-08-17 10:16:00 | DEC16 22 65 CALL | sell | $13.210 | long |
2022-08-17 10:16:00 | DEC16 22 65 CALL | sell | $13.210 | 0 |
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