FB - buyers exhausted, buy puts, stop above 229.20

Jun 15, 2020

After a huge run FB price has stalled. If selling picks up (see weekly chart) the stock is likely to move below white line. Also note that RSI-14day still has not returned to 50 and stochastic made a sharp move lower (yellow oval). This suggests the possibility of more selling.
I bought weekly 225 puts when price was around 228.80 and may hold overnight. I am not going further out in time because options are expensive. A safer option trade would be 220 puts with 6/26 expiry. I exit if stock breaks 229.20.

Jun 15, 2020

Trade closed: stop reached

Sold my puts. If I focus on chart technical and indicators and [try to] squash all biases, I have to start buying calls.

Jun 15, 2020

Trade active

Switched to calls. Bought 6/26 expiry 240 strike calls.

Jun 15, 2020

Trade closed manually

Took about 10% profit and sold calls. Decided not to keep risk overnight. Right now I see DJI might close under 20sma on daily and stochastic is heading lower. FB could go either way, as this could be a liitle rebound rally (seeing same on QQQ).

Jun 16, 2020

Note

I closed my calls because I had other overnight positions and wanted to limit capital kept at risk. I suggest selling at least half of your calls, as FB filled the gap. I still believe in that white line on chart and this may still be a "top" that rolls over.