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Option Day Trading SPY and TSLA: 3/17/23


My Daily Process for Trading SPY and TSLA Options


  • 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. DO NOT AVERAGE DOWN ON ENTRIES!
  • Plan for the clear setups ONLY!
  • Patience is the key to solid entries and to maintaining low-stress levels.
  • Fewer trades with more confidence.
  • 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.
  • Do not give in to negative triggers.


Market News

  • Looks like we have just Michigan Consumer Sentiment as possible high-impact data coming in today at 7:00am PST.
    • Let's see which way the market wants to turn!


  • For today, I have these levels marked: 
    • Reaction Zones: 
      • 398ish (yellow)- wait for the cross-over for the RZ bounce or possible RZ breakout if the time duration/volume looks good enough.
        • yesterday was a solid day for RZ breaks.
      • 394ish (yellow)-wait for the cross-over for the RZ rejection. At the level now.
    • Key Levels:
      • 397.50 (thick red/white lines)- wait for the KL reject, but it can possibly consolidate near this and continue. If this level doesn't have enough resistance, I like 400 better.
      • 400 (thick/red, white lines)- wait for the KL reject.
      • 390 (thick red/white lines)- wait for the KL bounce here. Since we had such a solid move yesterday might be getting pullbacks today.


  • For today, I have these levels marked: 
    • Reaction Zones:
      • 186 (yellow)- wait for a cross-over for the RZ bounce, or it might just be a decent RZ break play (again, solid strength yesterday)
      • 183.50 (yellow)- wait for the cross-over for the RZ reject.
    • Key Levels:
      • 192.50 (thick red/white lines)- wait for the KL reject. This is a bit further out, but I like the confluence at this level better than 190.
      • 180 (thick red/white lines)- wait for the KL bounce.


  • Entered SPY 394 reject area...tried to hold but was nervous, so I sold for a small gain.
    • within the first 3 min of trading, so did not want to risk it. 
    • fighting right at the zone could go either way still.
    • better to wait and see the direction
    • yup was right for the direction just couldn't hold long enough...don't usually enter right at the gate, too, so I wasn't too confident in playing this so soon. 
  • Looks like we have strength/buyers this morning
  • If SPY can convincingly get above 394 and come back to retest will enter for the RZ bounce
  • TSLA cross-over happening now.
  • Same action as yesterday.
    • really tight moves and no direction yet.
  • Looks like KL bounce might be in play very soon.
  • Nevermind, the market strength is back...
  • Possible entry on a lower high below the RZ.
  • Ah! Pathetic TSLA RZ break. Just would not move! Excellent, as soon as I sold, it moved. Sold too soon by 15 seconds. HAHA could not even hold for an extra 15 seconds! This keeps me in Cycle A because "I want more" from this result, and my following trades are always a bigger initial position size, or I give them more time. But they usually result in me failing to achieve what I want.
    • this time, I am acknowledging that I was on the right track, and the positive trigger was that I entered according to my plan and took profits. Unfortunately, I didn't capitalize more, but it was a 15-second difference from the desired results. To keep myself on CYCLE A, I must know this is sufficient and keep doing what I do because it works.
  • Could have entered near the KLs but chose to wait until they actually got there, adhering to and actually challenging my natural regression pattern.
  • Got in SPY 390 KL entry.
    • sold for small gains again...turns out it was a good exit because of all that strength/buying pressure, well, nowhere to be seen now!
  • Got in on TSLA below 180 KL...I knew this one had more room below, so I got in when it was overextended, but still no considerable buying pressure, so I needed to exit with small gains again.
  • So, all day, I have been executing on CYCLE B. It feels good to not lose and know I played well.
    • I can see how wanting more always had such a strong pull on me.
    • I need to let this go.
  • If I am in Cycle B now, what matters most is what I do next. And that is to keep achieving success by staying in Cycle B and chasing positive triggers.
  • I could have made a ton of money today if I stayed in my SPY reject play and stayed in the TSLA RZ break play.
    • it sucks to have missed it, but that is the old way of viewing it
    • the new way I must view it as I played the right plays and need to keep doing what I am doing and repeat this because this is the way. DO NOT NEED TO DO ANYTHING DIFFERENT. IT WAS LITERALLY A TIME FACTOR. 
    • I am sure I can better modulate, but this is the path forward.
  • Got in again at the SPY KL area after it had a round of sideways price action...sold for small gains again because that is what I need to do to remain in Cycle A. It didn't want to go more, so took my profits.
    • I can work on optimizing longer-term hold later, but right now, it is essential to remain in Cycle A.
  • Whao, I didn't look at my PnL today but focused on the plays and just looked at it now, and up 188 so far on the day... So even though I captured a small amount of the moves today, it was enough to make it around where I expect my position size earnings to be.
  • I could probably wait for another entry at the KL for more bounce to the upside but been a tough week, and I do not want to sit and wait around all day. So will just review it later but think I will call it today.
  • Yeah, all the strength yesterday was probably one big short squeeze; no buyers/support today keeps just downtrending.
    • I was dead on with my rejection and breakdown today.
  • Want to stay in Cycle B, so calling it and will be ready next week!


  • Yes, I remained in Cycle B today and focused on positive triggers. However, it was difficult to not revert and think about "wanting more."
    • I need to be satisfied with how I traded, stuck to my plans, and exited when things would not go the way I needed. 
  • I need to repeat this over and over again.
    • I am satisfied with today's results and individual plays.
      • If I "wanted more," I would not have achieved what I did today.
  • Looking forward to the weekly review and next week!


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