Directional Movement > 60 = swing puts

15 lug 2020

The white line in this Directional Movement Indicator is an average (ADX) of the DX. It is high when it is over 40. On my chart there is also a DX line, which combines positive and negative direction to show a total. When this line gets over 60 it indicates real overbought or oversold conditions and means there will be near term selling or buying. This has happened three times this year, as indicated by the dotted vertical lines.
I bought 7/24 expiry 370 puts, and 7/17 expiry 385 strike puts (which I will sell Wed-Thurs), small position of each.

16 lug 2020

Trade attivo

I closed my 7/17 puts yesterday. bought @ $2.76, sold @ $3.63. I might sell the 7/24 puts today to cut risk - I want to hold into next week but if NFLX earnings are good then other tech stocks may rise on Friday.

16 lug 2020

Trade chiuso manualmente

Sold 7/24 puts also on this drop towards 385. Bought at 3.70 and 2.78, sold all at 3.97.
I have only in the past few months started using directional movement (I have it layed over my volume bars to conserve screen space) and it has improved my trade entry timing.