jay_beckner

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

#014 TWLO Calls Closed Profit

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Trade Details: Sold to close 3 Nov 25th Twilio Ord Shs Class A (NYSE:TWLO) 34 calls for $2.45 (in at $1.60 for 2 days), $728.40 total proceeds. The trade executed at 14:03:00 when the stock was approximately $35.75.

Return: 49.7% after commissions

Note: The 2-hour technical trigger proved too slow to capture most of the profit offered by this trade. As seen on the 15-minute chart below, TWLO started to break down technically late yesterday while the two-hour and daily charts remained bullish.

Short-term TWLO chart showing deteriorating technicals and a (possible) better exit. The gap at $34.90 is magnetic.

Short-term TWLO chart showing deteriorating technicals and a (possible) better exit. The gap at $34.90 is magnetic.

When this option was marked about $1 higher, I submitted a stop limit order ($3.70/$3.40) to protect my profit. Torn between booking a nice win and sticking to my plan of selling when the 2-hour MACD crossed in a bearish manner, I pulled the order.

How sensitive I should be to more granular technical deterioration? If I am trading a daily setup with a 2-hour technical trigger, should I use the 30-minute or faster chart to prompt a more critical look at the second-level view? Or is this setting me up to miss the return for which I initiated the trade?

Status: Account $1,703.35 | Q2 Return (55.5%) | Q2 Goal 59%

#015 TWLO Calls

#014 TWLO Calls