Today opened with a gap up and closed with a Doji candle above yesterday's close, 8ema, and 3ema. Even though the past 2 days don't form a candle sell pattern, which increases the odds we'll turn around soon, this price action is not consistent with our thesis.
The Doji represents indecision, and it could gap down and run tomorrow, but it could also continue up. As usual the news/fundamentals are completely unreliable for swing trading. However, we had technical chart based reasons to short this, so its not regrettable.
Having no edge makes it a simple gamble, and that's not our objective. We only want to enter and stay in trades where the chart indications favor our thesis. We have no reason to think we'll prosper from simple gambling.
So, we sold the TWTR Sep 30 Put for $2.55. We bought it for 3.15 so we lost $60. If things went our way and we hit our target we would have made 10 times that. So while it was a losing trade, it was still a good trade.
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