Potential Head and Shoulders Put Options Play

NASDAQ:DADA   Dada Nexus Limited
I originally entered this at the 88.6% Retrace with the thought that it could be a bullish bat with divergence and while it did pump 32 percent from the PCZ it did not come close to my normal Bat target yet. But while holding my position on this stock i noticed that the price action actually looked a little like a Head and Shoulders so i decided to take profit and buy some puts.

So the next step for us after entering these puts would be to wait and see if the macd crosses bearish again and invalidates our bullish divergence then we may see lower lows to fib extensions like the 1.618.

I would not recommend shorting this stock as that is dangerous but instead buying some puts that are a couple months from expiration would be the safer route.

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