SNDK Put Credit Spread 195/190 – 01/30/26

1. Indicator State: PCS READY = TRUE (92/100 Score)

My indicator explicitly flagged this candle as PCS READY, which means every condition required to sell a bullish put credit spread was met:

Trend: ✅
RSI (40–65): ✅
ATR% > 1.5: 8.3% ✅
Gap% < 4: ✅
Above swing low (20): ✅
SMA50 > SMA200: ✅

2. EMA Structure: Bullish Regime Still Intact

On the entry candle:

9 EMA (white) > 20 EMA (yellow) > 50 EMA (orange)
EMAs are stacked and rising
50 EMA is clearly trending upward, not flattening

This confirms SNDK is still in a bullish regime, which is my primary requirement for selling put credit spreads.

Importantly, this is not late-stage compression — it’s post-expansion consolidation, which statistically favors PCS sellers.

3. Price Context: Pullback Held Above Key Structure

Context matters here:

Strong upside impulse from August through November
Recent pullback did not break the 50 EMA
Price is now consolidating above rising support
No distribution candles or momentum failure on the daily

My PCS system is designed to sell puts after a pullback that proves it can hold structure, not during breakdowns.

That’s exactly what this chart shows.

4. Volatility + Credit vs Time = Strong Edge

ATR% ~8% → elevated premium
$1.15 credit on $5 width → excellent risk/reward
Shorter DTE = faster decay per day

I’m getting paid more per unit of time compared to a longer-dated spread.

My Personal Thought’s outside the Technicals

I honestly thought this one might have been a bit risky. I normally choose IV’s around 35-60% but for some reason the IV for SNDK was at 90% which was very good for premium, however the ATR% is also very high. It’s at 8% meaning that one really bad day could drop around 10% so if anyone is taking this trade go light. My stop loss for this one is $2.20 which makes this a 1 to 1 risk to reward if I let it go for expiration. However I’ll take profit at $0.55 first if it reaches it before the 21 day mark. If it reaches the 21 day mark and hasn’t hit profit target. I might just hold it and see what happens. Will update this post when I close the trade.

Today, My GTC order for $0.55 hit right off the bat in the morning. This trade is closed in profit ^.^ 50%