Today is the day I will be testing out my new theory. Since 9 EMA and 20 EMA was above the SD1(Orange Dotted Line) Upper Band from VWAP, my bias is to sell put credit spreads if price breaks and closes above the premarket high from 5:30 AM – 6:30 AM PST. Price broke above the premarket high I sold 7065/7070 puts for $0.65. and then sold 7070/7060 put credit spread for $0.50. This second trade might have been dumb on my part. I should have waited a bit and sold for higher premium.
Looking to close all of these at $0.10 If possible.
Price dropped very low so i closed the 10 wide spread for a $50 loss. I added another position to the 5 wide for $0.55. Will close everything for a loss if breaks past VWAP. Will sell calls if it breaks past the premarket low to bolster my losses.
Price ended up climbing up and I closed everything with a $10 Profit. Didn’t want to risk everything on a play i wasn’t really sure about. However, at least I know as long it didn’t break further after the first touch on VWAP, Price could potentially reverse. I will wait next time to add more. Next time I won’t add a 10 wide if i already got two contracts in. Its best not to be greedy.