I bought this put on 3/27 for $8.20.
My original profit target based on the supporting trendline I had drawn was to get out if the stock traded below $18.75. However, after the stock dropped as low as $19.19 on 4/4 and then started to recover, I noticed that there was actually a much stronger supporting trendline slightly higher up (see updated figure below).
I updated my proft target to $19.25, but at that point I figured I had missed my chance to exit profitably because it had already made that move and was starting to move back up. Luckily, the market gave me a second chance today when the stock went down as low as $19.24 and I was able to get out today for only about $20 less than I would have if I had exited on 4/4. One thing I am happy about is that I didn’t panic and sell manually when the stock had gone up a bit last week.
Another positive thing is that I went back and reviewed the trendlines on my other positions and found that a couple of those needed to be updated too. Luckly, I found those before I missed a potential profitable exit opportunity.
