YESTERDAY IS A PERFECT EXAMPLE OF WHY WE USE TRAILING STOPS AS PROTECTION! LAST WEEK WE HAD A STOP LOSS HIT ON THURSDAY, AND WE HAD NO IDEA TRUMP WOULD ANNOUNCE THURSDAY NIGHT HE HAD CONTRACTED COVID-19.
THAT NEWS GAVE US AN OPPORTUNITY TO BUY AND SELL CALLS INTRADAY FOR 100% ROI.
SO TODAY WE WILL LOOK TO MAKE TRADES OFF THIS VOLATILE MARKET CONDITION.
SCENARIO TRADE #1:
IF IN THE FIRST 30 MINUTES AFTER OPEN THE QQQ'S HOLD ABOVE 275.25 WE WILL BUY OCT 9TH 277 CALLS ($1.80-2.20 RANGE). IF THAT TRADE SETS UP WE WILL BE NIMBLE, AND ONLY HOLD THAT TRADE IF WE SEE THE HIGH ESTABLISHED IN THE FIRST 30 MINUTES BROKEN, AND THEN WE WILL WATCH THE VWAP FOR SUPPORT. INITIAL PROFIT TARGET WILL BE 50% ROI ON THE CALLS, BUT REMEMBER WE WILL PROTECT OURSELVES WITH A TRAILING STOP. (EXAMPLE: WE BUY 277 CALLS AT $2.20 AND THEY TRADE $2.70+ WE WILL PUT STOP IN AT OUR ENTRY PRICE TO ELIMINATE LOSSES AT $2.20)
SCENARIO TRADE #2:
WEDNESDAY OPEN UP > $2.00 AND QQQ'S BREAK THE FIRST 30 MINUTE LOW WE WILL BUY 275 PUTS($2.00-$2.50 RANGE) AND WE WILL HOLD THE PUTS ONLY IF TUESDAY'S LOW IS BROKEN AND ACCEPTED.
BE NIMBLE BECAUSE THIS COULD BE ANOTHER VOLATILE DAY!!!
THAT NEWS GAVE US AN OPPORTUNITY TO BUY AND SELL CALLS INTRADAY FOR 100% ROI.
SO TODAY WE WILL LOOK TO MAKE TRADES OFF THIS VOLATILE MARKET CONDITION.
SCENARIO TRADE #1:
IF IN THE FIRST 30 MINUTES AFTER OPEN THE QQQ'S HOLD ABOVE 275.25 WE WILL BUY OCT 9TH 277 CALLS ($1.80-2.20 RANGE). IF THAT TRADE SETS UP WE WILL BE NIMBLE, AND ONLY HOLD THAT TRADE IF WE SEE THE HIGH ESTABLISHED IN THE FIRST 30 MINUTES BROKEN, AND THEN WE WILL WATCH THE VWAP FOR SUPPORT. INITIAL PROFIT TARGET WILL BE 50% ROI ON THE CALLS, BUT REMEMBER WE WILL PROTECT OURSELVES WITH A TRAILING STOP. (EXAMPLE: WE BUY 277 CALLS AT $2.20 AND THEY TRADE $2.70+ WE WILL PUT STOP IN AT OUR ENTRY PRICE TO ELIMINATE LOSSES AT $2.20)
SCENARIO TRADE #2:
WEDNESDAY OPEN UP > $2.00 AND QQQ'S BREAK THE FIRST 30 MINUTE LOW WE WILL BUY 275 PUTS($2.00-$2.50 RANGE) AND WE WILL HOLD THE PUTS ONLY IF TUESDAY'S LOW IS BROKEN AND ACCEPTED.
BE NIMBLE BECAUSE THIS COULD BE ANOTHER VOLATILE DAY!!!
Trade active:
BOUGHT OCT 9TH 277 CALLS AT $2.80 LOOKING FOR A BREAK OF 279.09 TO HOLD TRADE LONGER.
ONCE 277 CALLS HIT $3.35 WE WILL MOVE PROTECTIVE STOP TO $2.80 = 0% LOSS
ONCE 277 CALLS HIT $3.35 WE WILL MOVE PROTECTIVE STOP TO $2.80 = 0% LOSS
Comment:
WE WILL ADD MORE 277 CALLS ON ANY NEW LOW THAT IS REJECTED(MEANING A NEW LOW BUT QQQ DO NOT REMAIN BELOW OLD LOW 277.43).
WE ARE GOING TO BE CAREFUL AND SELL IF QQQ DOES NOT BREAK 278.29 AND ACCEPT)
ITS VOLATILE AND CAUTION IS RECOMMENDED
WE ARE GOING TO BE CAREFUL AND SELL IF QQQ DOES NOT BREAK 278.29 AND ACCEPT)
ITS VOLATILE AND CAUTION IS RECOMMENDED
Trade active:
WE ADDED 277 CALLS AT $2.76 WHEN LOW HELD. AVG IS $2.78. 50% ROI TARGET IS $4.17. HAVE A LIMIT ORDER (OCO) TO SELL HALF POSITION AT $4.17
WE HAVE OUR PROTECTIVE STOP FOR ENTIRE POSITION AT $2.78 ($0 LOSS)
TO PUT THIS IN PERSPECTIVE...
AS BAD AS YESTERDAY WAS WE ARE ONLY -$1.78 BELOW YESTERDAY'S HIGH AND +$5.18 ABOVE YESTERDAY'S LOW.
STAY NIMBLE ANOTHER SELLOFF COULD BE IN THE CARDS!
WE HAVE OUR PROTECTIVE STOP FOR ENTIRE POSITION AT $2.78 ($0 LOSS)
TO PUT THIS IN PERSPECTIVE...
AS BAD AS YESTERDAY WAS WE ARE ONLY -$1.78 BELOW YESTERDAY'S HIGH AND +$5.18 ABOVE YESTERDAY'S LOW.
STAY NIMBLE ANOTHER SELLOFF COULD BE IN THE CARDS!
Trade closed: target reached:
WE JUST SOLD 1/2 POSITION IN THE 277 CALLS AT $4.17 LOCKING IN 50% ROI ON A 2 HOUR TRADE!
WE NOW HAVE MOVED OUR PROTECTIVE STOP ON REMAINING CALLS AT $3.35 WHICH WILL GIVE US 20% ROI ON THE REMAINING 277 CALLS. IF THAT IS FILLED WE WILL GUARANTEE US 35% ROI ON ENTIRE TRADE.
WE NOW HAVE MOVED OUR PROTECTIVE STOP ON REMAINING CALLS AT $3.35 WHICH WILL GIVE US 20% ROI ON THE REMAINING 277 CALLS. IF THAT IS FILLED WE WILL GUARANTEE US 35% ROI ON ENTIRE TRADE.
Trade active:
OUR OCT 9TH 277 CALLS WE PURCHASED WEDNESDAY @ $2.78
HAS AN OCO ORDER WORKING TO:
SELL LIMIT $7.87 OR SELL STOP @ $6.78
HAS AN OCO ORDER WORKING TO:
SELL LIMIT $7.87 OR SELL STOP @ $6.78
WE WILL BUY 277 CALLS ($2.90 AREA)