JWN Bullish inclined Naked Calls 20 May Expiry (May Track 3)

Whats The Plan/Trade/Thought

• I had filled my Macy’s trade first but as I was looking at the charts I realised that it was possible for me to create some sort of a hedge with JWN and M (one being Puts, the other Calls).
  
• JWN similar to Macy’s has strong S&R lines at 30, 26 and 24.19
  
• As I believe we are in the ranging situation. I expect the price to drop or go up but be contained within the S&R lines at least for the short term
  
  I Feel
  
• I’m entering this reflection post and 2 days after filling this trade, Fed Powell announces the rate hikes and the price drops by 5.25%. Not surprising, but I didn’t expected this drop to happen so quickly. I figured this would happen closer to May.
  
• I’m still confident of this trade plan
  
  Imagine Yourself Taking The Other Side
  
• This is possible also as it is aligned with the range movement I expect and there is an S&R line at 30.20
  
  Imagine Yourself As A Neutral Observer
  
• This trade as a hedge with the Macy’s trade makes good sense and the strong S&R lines below at 26 and 24.19 gives good resistance
  
  Look For New Information
  
• Before trade entry Nordstrom generally has positive news with it rising 27%
  
  How Do I Feel Now
  
• I feel ok, with the current situation but will have to monitor how the first S&R line holds
  
  Trade Specs
  
• Sold 340 Puts @ 0.22 - Strike 22.5
  
• % to Strike 29%
  
• ATR 22%
  
• BP used 75k
  
• Max Gain: 7534.4
  

Comment:

With the bearishness losing it's steam on Thursday, Friday's broad market rally and next week's Economic Cal seems pretty muted. I entered another JWN trade with a lower strike that would close next Friday. But now it seems like TOS has flagged my huge position as a risk. I probably have to close part of it when the market opens on Monday

Writing this post entry. while the elements were there to show some slowing down of the drop. It is still a very risky trade as it is possible that the market tanks on Monday. Especially sicne JWN has shown to drop up to -6% a day

Sold 240 Puts @ 0.18 - Strike 21
% to Strike 14.96%
BP used 50K
Max Gain: 4164

Trade closed manually:

I'm not happy with the decisions i made that was focused on profit instead of risk mitigation when the entire retail sector was doing so badly.

I had multiple opportunities to exit with no to minimal loses but I was just hoping for some luck...

Loss -57k here. I must remember this trade and learn from it