January 7
Stock charts provided by Tradingview.com
Entries charts provided by IBKR.com
Trades Taken: 2
Trade Plan
Plan: Clean trading yesterday, forming a bit of a doji off the trend. I remove trendlines after they test to try and clean up the chart.
Slight gap up this morning. SPY previous close for a long , would need to reset at moving averages as they are wide into next gap fill of 592. For the short I like the starting at yesterday’s highs, adding into 601.34 gap, could very well see upper trend today if we squeeze. QQQ is a little more tricky. I like low of day for a long, but I want to see where moving averages open up, they didn’t test yesterday.
Markets will be closed on Thursday to observe the passing of former president Jimmy Carter. I am curious to see if there is anything off with the option premium this week with a market closure.
Result: Markets dipped out of the gate, I go with calls. Went with QQQ 522 calls as we had nice speed and distance. Today was just a starter position as we came into the 20 ma, I knew we had protection at level (low of day) and moving averages just below. Nailed the low here, and out as we pushed into first target, which today was 20%. Nice speed and distance out of the gate.
Markets continued to drop, I pounced on QQQ 519 calls with a killer trade. SPY lining up for a gap fill trade at this time (paired with speed and distance) gave me the confidence to use more size on this trade.
January 6
Stock charts provided by Tradingview.com
Entries charts provided by IBKR.com
Trades Taken: 2
Trade Plan
Plan: Decent sized gap up this morning to start the week. Both markets gapping right into trend. Short at the trend would have been a play this morning, but it triggered premarket, so looking higher for the short. SPY I like gap fill up at 601 if we break through trend and the 20 ma. Two gap fills below for longs, 595 and 592.60. For QQQ I like a potential quick test of 526, but prefer the higher short at gap fill 529.60. For the long, I like 518.58 gap. Wide range today for a proper level test on this gap up.
Result: Market pushed out of the gate, I went with SPY 598 puts for a first reaction, stopped out on the last piece. Took another short trade with SPY 601 puts as a “half-way” trade. I thought the market could push harder and higher, but worked nicely here and got the reaction I was looking for. In total, I wanted to work SPY short, had to reset on strike prices due to initial push and squeeze.