Trade recap for Tuesday 8-15-23

Trade 1: $MSFT 327.50c

• Reasoning: relative strength/ 325 break

• Entry on the contract: 1.85

• Exit on the contract: 1.55

• Profit in percent: 18%

Explanation:

MSFT was able to show relative strength today after it pulled back into the 320 support range and found buyers. On the climb back into 325, we saw decent buyers stepping up with some solid volume coming through. I liked the relative strength with this name but due to the chop in the overall market this wasn’t one I wanted to size up in so I kept it very light. On the break of 325, I went long with the 327.50c with a $1 risk on it (which was the close from yesterday). MSFT stopped me out soon after due to the market not having much momentum and upside strength.