Nov 2016 Swing #2 – GOOGL

Day 1 – 28 Nov 2017 : Entry


Daily chart. GOOGL broke the mean after a series of price resistance at mean. However it still closed below the mean.


5min chart. GOOGL started declining after lunch time.

  1. GOOGL broke the mean on the first hour of market open. The wave indicator at that point was around 1.7.
  2. This is a directional bullish trade. To reduce my exposure, I opened the Bull Put Spread for 4.00 credit per contract when GOOGL was trading around 793. The BPS gives me positive Theta if it stays above 780.
  3. I made the entry just before lunch time at 11:30am US EST and went to sleep. Then GOOGL started to decline around 2pm US EST, just after lunch time.
  4. This trade will have a higher probability of winning if it closes above the mean.

Day 3 – 30 Nov 2017

  1. GOOGL was still trading and closed at the mean on 29 Nov 2017, so I left the trade open.
  2. Today it started to decline and it came with volume. So I decided it is time to cut the loss and close the trade.


Trade Summary

  1. This is losing trade, nett loss of $140.56.
  2. The wave signal indicator not strong enough. For expensive stock like GOOGL, wave indicator should at least crosses 5.0.
  3. For directional trades that will be carried over more than one day, it is better to make the entry on second half of the market, best during last trading hour.

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