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Option Day Trading SPY and TSLA: 3/14/23

 

My Daily Process for Trading SPY and TSLA Options 

DAY GOALS

  • Focus on Intraday System Pattern A-C. 
    • Pattern A: reaction zone crossovers for an RZ reject or RZ bounce
    • Pattern B: key levels for a KL reject or KL bounce.
    • Pattern C: RZ breaks (only on clear long-time duration formations)
  • Do not trade anything else.
  • Keep position size small.
  • Plan for the clear setups ONLY!
  • Patience is the key to solid entries and to maintaining low-stress levels.
  • Fewer trades with more confidence in the trades I act on.
  • Focus on SPY and TSLA options ONLY!
  • Time to simplify the process and improve/reach the next level.
  • Actively challenge my regression pattern to ONLY trade my plan.

PRE-MARKET PLANS

Market News

  • Looks like we have Core Inflation Rate data coming in today at 5:30am PST.
    • Big day to see how the markets will react and also see which direction the FED might pursue going from here with the recent instability of the banking system etc.

SPY

  • For today, I have these levels marked: 
    • Reaction Zones:
      • 390 (yellow)-wait for the RZ cross-over for an RZ bounce, or the RZ reject if this zone provides a nice resistance area.
      • 385 (yellow)-wait for the RZ cross-over for an RZ reject or RZ bounce if we have an excellent support area.
    • Key Levels:
      • 394 (thick red/white lines)- wait for the KL reject.
      • 380 (thick/red, white lines)- wait for the KL bounce.
      • 378.50 (thick red/white lines)- another zone with much support. If 380 doesn't have the support needed for a bounce most like this, KL will.



TSLA

  • For today, I have these levels marked: 
    • Reaction Zones:
      • 178 (yellow)- wait for the cross-over and RZ bounce.
      • 170 (yellow)- wait for the cross-over and RZ reject.
    • Key Levels:
      • 183.50 (thick red/white lines)- wait for the KL reject.
      • 186 (thick red/white lines)- if 183.50 doesn't provide enough resistance, most likely, this level will.
      • 162 (thick red, white lines)-wait for the KL bounce.






RAW TRADING NOTES

  • Got in SPY 390 RZ bounce area.
    • Executed perfectly on the retest.
    • Selling for decent profits.
    • It will probably go more, and I probably needed to give it more time, but I needed to take my profits, and plus, I did have some levels marked, so I might have resistance there and didn't want to risk a fast pullback.
    • Next level is the KL or possible cross-over for a reject.
  • I was considering entering TSLA at the 178 RZ but didn't quite hit the level....might have missed it. Was really close to hitting the button. It would have been up 70 cents per contract right now.
    • the move was kind of slow and choppy, so I might be able to get a better entry soon. Will be patient here.
  • SPY, nice slow uptrend need patience here, and hopefully, we will get the KL to reject entry as planned!
  • Had multiple chances to get in on the TSLA RZ bounce but never got in. Lesson for next time!!!
    • serves as a data point for improvement.
  • Now, patience is required for the KL plays.
  • Wanted a bit higher for the SPY KL but got in near 393.50....slow and choppy, but I will give it s little time to work. I'm waiting for this to break below 393 and trying to play this extra conservatively. I'm keeping a tight stop.
    • yup still kind of choppy price action...makes me nervous.
    • going to wait to see if this bounces more and actually tests the KL I have planned
      • I feel the regression "pressure." 
      • Stay aware and wait for my straightforward entry at the KL.
  • It seems like I was a bit too early for the rejection....rejecting now. Possible entry on the lower high. It could be at the 393 level now.
    • 100% on the right track!
    • got back in on the lower high...couldn't give it time; I just locked in a single...still choppy.
  • Not liking how slow and uneventful today is.
  • Will call it early today.
  • Well took one more trade this time on the BIG intraday panic.
    • went a lot lower than I wanted and was about to cut it for a loss.
    • then started to bounce. Small single.
    • left more on the table but wasn't sure what caused the drop until I was in it and thought it would be better just to take a scalp on it.
    • Supposedly, there was a drone collision involving a US and Russian aircraft.
      • I think markets overreacted, but we will see if this was just an accident or something more.

POST REVIEW

  • No question, today was a solid trading day. I met all of my daily goals.
  • I felt the regression pressure that I felt very strongly yesterday.
  • Pleased to have stayed faithful to my plans and patient with the entries.
    • I can work on the exits, but today was really choppy, so there is a slight improvement on a chop day. 
    • When choppy, you must be conservative and have tight stops.
    • But nice to see the plans play out.
  • Definitely increased my confidence in my strategy today.
  • Rinse and Repeat.
























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