Closed some SOXX Apr 17 342.5 calls today. Nice move off the setup.
Main idea was pretty simple. I’ve been watching how SOXX reacts around the 20 day moving average. It’s been holding that level well and every pullback into it was getting bought up with decent volume.
At the same time Bollinger Bands were tightening for a few sessions. That kind of compression usually leads to expansion, so I was just waiting for confirmation.
Once price pushed off the mid band and the bands started opening up, I started building the position. Added a bit more as momentum came in and volume picked up.
I pay a lot of attention to how price behaves around the mid band and whether buyers are actually supporting the move. This one looked clean.
Didn’t want to sit in short dated calls once it started getting extended, so I took profits into strength. Ended up being a solid trade.
Nothing fancy, just BB expansion plus 20D support and letting momentum play out.
Anyone else watching SOXX here or mostly sticking with NVDA lately?
https://i.redd.it/aj3hlw8dn0vg1.jpeg
Posted by Particular_Tax_9436