LUV Long, breakaway Gap and back to weekly demand zone

Apr 20, 2020

Condition:
1. 10/17/2014 weekly Demand zone confirmed
2. Two breakaway Gap (G1, G2), Two down trendline break
3. Re-test weekly demand zone

Estimate: next breakaway Gap (G3), down trendline break;

Entry: 31
Stop: 28.5
Target: 45; risk/reward=1:5

This is a trading school homework. I need 6 months to practice trading plan.
If you like it, thank you for your support. Please use SIM/Demo account to try it, until my trading plans get high winning rate.

Apr 20, 2020

Trade active

In my option trade, simulate long 28 shares of stock, and got 0.6 credit per share.
I bought ButterFly Sep C35/45/55, limit 1.65 (Delta 0.09), and sold P22.5 limit 2.25(Delta -0.19);
if LVU stays above 22.5, at least win 0.6.
Option Stop below 22.5

Since all Air stocks are in same pattern, I also bought:
AAL Butterfly Aug. C13/23/33 Limit 1.42;
DAL Butterfly Sep. C30/45/60 Limit 1.83;

Apr 20, 2020

Trade active

For these Air stocks, I bought betterfly for two reasons
1. it is not in uptrend clearly yet. try to reduce the initial risk;
2. IV is still very high. if price goes higher slowly, the OTM calls will still lose money.

May 26, 2020

Trade active

SellToClose Sep P22.5 limit 1.25, win 1.00;
Still today,
LUV is a small winner,
AAL is a small winner,
DAL make even;
Actually, The entry point was not good, but the option strategy is good, So, I could survive in the bottom.

Jun 9, 2020

Trade closed: target reached

this is a winner.