Updating on 3/22
IIRC, I couldn’t find anything that I liked on my watch list, so I checked the sizzle index within ThinkorSwim and this is one that came up. It had been pushing down for weeks, and appeared to be in a place of consolidation before pushing down again.
I liked what I saw, coupled with the fact that I was looking at this the day before, too, and it finally moved how I wanted to (price gapped up to nearly the 20MA, which was also near a fairly strong resistance area. It looked like a great retest before filling the gap and continuing back to the downside), so I pulled the trigger. As of right now, I’m still in the trade down.
Underlying Price – $11.50
Underlying Target – $9.50
Strike Price – $12.50
Premium – $2.73
Entry – $2.75
Exit – 3/31 @ $1.70
I let this run for quite a while since it didn’t make moves that suggested to me it was pushing up. It wasn’t pushing down, but for several days it stalled right around a resistance area. I thought about liquidating a few days early, but even then told myself that I didn’t need to get out because it wasn’t really tying up capital. I was still able to get into trades no problem.
On Tuesday (3/29) when I looked at MYTE, though, price did push up through that resistance area, and was coming up against another one. That up-move was enough for me, so I closed it at market. $1.70
