APR 2021: ABNB $170 – $175 Bull Call Spread
Stock
ABNB
Trade Structure
$170 - $175Call Spread
Trade Date
4/13/2021
Price Paid
$250
Expiration Days
05/14/2021
THIS IS A DELAYED TRADE FOR EDUCATIONAL PURPOSES ONLY.
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Trade Rationale
ABNB IPOd last December and I trade stocks which have some kind of trading pattern in place, so have been avoiding it so far. After 5 months post IPO, ABNB has a decent trading pattern in place and I got into this trade after seeing ABNB drop to its support level at $170ish. Although, it appears that the stock is now entering a squeeze/consolidation, but we still have a nice trading range available between $170 - $195 even inside this squeeze.
Trade Selection Criteria
Overall market movement
N/A – There is nothing drastic going on in the overall Market. ABNB has dropped on no material news
No Earnings or Significant News
Earnings are on 5/25. Our expiry is 5/14 so we are safe.
Bollinger Bands outside Keltner Channels
Bollinger bands are slightly outside the Keltner Channels.
RSI Analysis
Trade was taken based on support/resistance levels
ADX Analysis
Trade was taken based on support/resistance levels
Trade Analysis
Analysis will be updated when we close the trade.
Trade Outcome
PENDING
Profit/Loss
$0
Beginning Account Balance
$11,100
Ending Account Balance
$PENDING
