10/4/19

 

The chart and notes on the SBUX put trade, follows the system described by Dr. Elder, in Come Into My Trading Room.

 

Expiration-week put options were used. 

 

Two separate buy-to-open(s) are shown; one Monday, one Tuesday.  Exit was on Wednesday, October 2nd.

 

 

Note:  After the second entry, there were nine successive hourly down-candles.

 

Exit was made at the first sign of congestion and potential reversal. 

 

Indeed, price action moved lower after the exit.  However, probabilities of continued down-trend decrease significantly at congestion and/or support.