HD - swing puts - watch price and RSI on daily

21 Apr 2020

The 20 SMA shows a downtrend on the weekly and 30min chart. Price has come up to 10 SMA on the weekly, and in a strong trend the price may not rally back up to the 20 SMA. I am looking for price to head lower, back to yellow support line, maybe lower.
Right now I am only taking a small position because on daily chart the 20 SMA is still upward, so I am watching for this to turn down and RSI will also head back below 50. Then I might add more puts. Otherwise price could head a higher (towards weekly 20 sma).

I bought 5/15 expiry 180 strike. Support (yellow line) is around 186. Remember that time matters. If stock takes too long to move lower, you can exit position and reenter later. Another strategy is to take profits if stock moves towards support, and then open a later expiry if it breaks lower.

23 Apr 2020

Catatan

Holding puts. Watch weekly chart - so far the candle is a doji with very small body. If it ends like this then Monday's open will indicate whether stock continues rising or heads lower. One way to keep track of your stocks is to use a separate page for each stock and keep a running record, with dates/times, of your observations and trade ideas.