I play poker and trade options, seeking edges from study, reflection and analytics.

#007 FIT Calls Day Loss

If you are viewing on mobile, scroll down for links to adjacent posts and email subscription options for /trades and /blog. Thanks for visiting.

Opening Trade Details: Bought to open 10 Oct 22nd Fitbit Inc. (NYSE:FIT) 12.5 calls for $0.80, $810.36 total cost (28.6% of account), 5 days to go. The trade executed at 09:44:51 when the stock was approximately $13.20.

Potential: Unlimited, but targeting $14 for underlying stock to exit the trade before expiration. Should fit break through the $13.04 support level, an exit is prudent.

Thesis: This is a moderately bullish technical and sentiment call. Friday's trade appeared constructive at the $13.04 level as negative sentiment crescendoed. I identified a stick sandwich pattern on the 4-hour chart, however taking a second look the two closes aren't exactly equal. I matched the low of the candle on the left with the close of the candle on the right.

 Stick Sandwich candlestick reversal pattern.

Stick Sandwich candlestick reversal pattern.

I initiated this trade on a pullback from a strong open, in the context of the fibonacci retracement levels on the hourly (shown below). Perhaps I was early as the 9-hour and 21-hour moving averages have yet to cross and send a stronger buy signal.

 Looking for FIT to base at $13.04.

Looking for FIT to base at $13.04.

Closing Trade Details: Sold to close whole position for $0.60, $589.60 total proceeds. The trade executed at 10:35:45 when the stock was approximately $12.99.

Return: (27.2%) after commissions

Note: This was not intended to be a day trade. When the stock moved below the $13 level, I closed the position at a loss. Since the trade, the stock has recovered back to $13.10, but I remain on the sidelines for confirmation of a bottom/breakout.

Status: Account $2,609.41 | Q2 Return (31.8%) | Q2 Goal 59%

#008 CME Calls

#006 YNDX Call Spread