My adjusted cost basis was after I had taken profits earlier in this trend.
This was one stock that I had been long at one point with a fairly aggressive 60/55 bull put spread....I did this back in May when I thought the rally was sustainable and CSTR at the time was a relative outperformer. Along with NFLX. Anyway these were July contracts and I had given myself plenty of time. Then the correction came and CSTR decided to trade under its 13 day EMA as well as break the %R stops it had put in place. That's when I covered the short on 60 put and let the 55 put ride. The hourly chart had also given signs that there was strength in the downside move.
After I had taken some profits, I decided that the 4 hr chart and the 13 period EMA would regulate this trade. Yesterday it closed above the 4 hr 13 EMA and today it confirmed by closing above yesterday's high.
So that means I was leaving the trade.
I only lament I didn't get out earlier. But still, at one point this was a heavy loss, I recovered that loss and brought in nearly $600..
Closed the last contract for $8.60...profit on total position $580.
Charts...Daily:
4hr
