Rationale
After the drop on the 13th, CGC has been relatively quiet, with price hovering around 45 for 3 days now. Testing out the use of the ImpVoltaility study in ToS to see if it helps me identify good entry locations for straddles. I'm not 100% sure if this indicator has any bearing on the option prices though.
The price action today was tight with very little movement. I don't suspect it'll stay this way and I am not confident in which direction it will go. Truly think it could break the descending trendline and rip for another leg up , or continue its collapse that it had on the 13th.
Also, there is something I don't quite like about how the $SPY was closing today. Three straight days of the market rising off the open with little pull-back. This trade will rely heavily on the overall market.
If the markets reverse and fall back below the 50 MA, I see CGC getting hit with it. While the rest of the market rallied quite hard, CGC has been relatively quiet.
Plan
Execution Review