BA 190/170 May put vertical spread

24 Mar 2023

Trade thesis
- technical breakout (bearish)
- downward break out of 3 months consolidation zone
- weekly stochastic showing more room to downside
- entry trigger: retest of demand zone and failure to hold above (wicked into the zone and closed below on daily)

Position
- strategy: put vertical
- structure:

• long 05/19 190p
  
• short 05/19 170p
  

- cost: $450
- delta: -19.68
- theta: -2.311
- gamma: 0.54
- vega: 10.15


Targets
- 1st target: $190.50 zone (previous gap fill)
- 2nd target: $173-169 zone

• HVN from post covid to present
  
• confluence of .5 retracement level from previous low to recent high
  

- SL target

• technical: weekly close back into consolidation zone
  
• discretionary: price action at key price levels
  
• discretionary: price action when stochastic enters oversold level (below 20)
  

24 Mar 2023

Not