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

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