Opened a RBLX Put Credit Spread — Cup & Handle Setup with Gap Above

Hey everyone, wanted to share a trade I put on today and get some thoughts.

The Setup:

$RBLX is forming a textbook cup & handle on the chart, with a gap up sitting above the current price. To me that’s a pretty clean bullish signal — the gap acts as a magnet and the handle consolidation looks like it’s coiling for a move up.

The Trade:

• Strategy: Vertical Put Credit Spread
• Sold: 2x Jul 2 $44 Puts
• Bought: 2x Jul 2 $42 Puts
• Credit Received: $0.69 ($138 total)
• Max Profit: $138 (RBLX stays above $44 at expiration)
• Max Loss: $262 (if RBLX closes at or below $42)
• DTE: 31 days
• Break-even: \~$43.31

Thesis:

The cup & handle is a continuation pattern and with the gap sitting above, I think there’s a solid floor here. I’m not trying to chase the upside — just selling premium below current price and letting theta work while the pattern plays out. The 31 DTE gives enough time for the setup to develop without holding too close to earnings risk.