Entry

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.

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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.

https://s3-us-west-2.amazonaws.com/secure.notion-static.com/69ffef04-139c-4339-b847-487fd8eb8cc5/Untitled.png

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.

Logs

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Exit

Plan

Execution Review

Lessons Learned