HD - swing PUTS, low riskNotice both yellow rectangles show a sharp stochastic move during a small price pullback. The larger selloff (white line) ensued after a retracement. I am looking for the same thing to happen here. One difference though is RSI did not drop as much the second time, so I will be looking for it to move below 50 in support of this trade.
I bought 7/17 expiry 230 puts, on June 16. When I go this far out in time I have to be willing to hold through paper losses as long as the chart supports my position.
I did not set a stop on this yesterday. After seeing the first hour's price action today, my stop is above today's high for a partial exit.
