The blue lines on chart mark the candles that correspond with peaks in RSI and directional movement. Both times previously, price reversed lower after buying was exhausted. One difference is that today RSI is at a peak while the green directional line is lower than yesterday. One possibility is that price may try to move up again tomorrow before retreating lower, but thus far price cannot reclaim 12.
Since puts expiry is 21 May, I bought 10 strike today, a small position, and will hold for a reversal. If tomorrow price goes over today's high I will trim/exit.
@innocentAprico32465, Most of my posts are for short swing and day trades. I initially bought puts for stock to move down to 9, but I did not like price action and option price was increasing little in the morning. Hence decided to take profits when stock was around 10.30. I bought the 10 strike puts for 1.86 on Monday and sold them for 2.12 the next day. I also had a stop loss set for 1.90 to keep the trade green. Price could still move lower, but I was more comfortable closing the trade.
Donnyboy123
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@OptionsRising, I was on the other side of you. Once the stock cleared 10.80 I went long the May 21 12 1/2 calls. Up nicely, looking for some follow through today.