FB - back into puts

Jun 22, 2020

I recently posted a daily chart showing a rectangular top (linked here) and bought puts for a move down. However the price remained above 235 and I sold my puts to cut risk in my account. Today again I see stock failing from 240. See weekly chart. The prior three days had small candle bodies, so the wicks indicate the "tug of war" in price. If buyers do not come in to take stock over 240, then it might roll over quickly from profit taking.

Jun 23, 2020

Trade closed manually

whew! sold puts at open and into weekly calls, 245 strike, for a day trade

Jun 23, 2020

Note

Reasons for exiting weekly puts and buying calls:
FB traded over last week's high, and candle is a bullish engulfing. When you look at daily directional volume, DX is just moving up, so more room for buyers to come in. RSI has room to move over 70. Usually after a strong momentum move and consolidation, the trend continues. If FB cannot get over 243 in the next 1-2 hrs I will exit. See this 5min candle at 10:10 bounce up from 10sma. mostly my day trades are based on 5 and 30min charts.