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


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. 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.
  • Do not give losers more time!
  • FOCUS ON POSITIVE TRIGGERS.

PRE-MARKET PLANS

Market News

  • It looks like we have no other high-impact news today. Following the Fed's decision, we shall see which direction the market wants to go now. 

SPY

  • For today, I have these levels marked: 
    • Reaction Zones: 
      • 395.50sh (yellow)- with big news days like yesterday, we can extend when the cross-over event happens, so for now, I consider the cross-over event already occurred, so looking for the RZ reject entry here. If we have strength, possible entry for the RZ retest/bounce.
      • 392ish (yellow)-wait for the cross-over for the RZ rejection, or since we bounced here significantly already with a slow up trend, I would like to see a retest here so possible RZ bounce entry.
  • Key Levels:
    • 397.50 (thick red/white lines)- wait for the KL reject. The next level above is 400/401.50
    • 390 (thick/red, white lines)- wait for the KL bounce. Next level below 389.

TSLA

  • For today, I have these levels marked: 
    • Reaction Zones:
      • 197ish (yellow)- wait for the cross-over for the RZ bounce.
      • 198is (yellow)- wait for the cross-over to the downside for the RZ reject.
    • Key Levels:
      • 200.00 thick red/white lines)- wait for the KL reject. 
      • 190.00 (thick red/white lines)- wait for the KL bounce.



RAW TRADING NOTES & COMMENTARY

  • Got in SPY 395.50 RZ for a reject.
    • Probably sold too soon, but it is not rejecting the way I wanted, so getting out with small gains.
    • Will wait for a more defined direction. Traded this within the first 5 min, so kind of risky that's why I played it safe.
    • yup, rejecting nicely now...left another 0.20 cents per contract on the table.
  • SPY pushing up now. Will see if it can reach the KL area for another entry.
  • Got in a bit early in the KL reject...
    • risk is 397...needs to stay below this level for me to stay in
    • course right at my risk...always!
    • Should not have gotten in too soon. But I guess I was too ancy.
    • kinda slow price action today.
    • took profits on a pushdown.
  • I'm forcing myself to operate in the positive behavioral cycles, which is fantastic, and it is paying me. But what sucks is that the price action is such crap that there is insufficient reward today. But it is what it is. 
  • Slow grind up today...
  • KL is still in play. So you might have another chance to enter a bit higher or lower high.
  • Possible KL bounce play now on SPY
  • Jeez, today's price action is like watching refrigerated honey come out of a bottle!
  • It looks like I need to wait and see if SPY wants to hold above 397-397.50.
    • The trend is up, so it might just be one of those days we slowly grind up.
    • Will wait for a pullback near a reaction area to get in. If none, so be it!
  • Got in puts on the push to 399. If it can't hold below 399, I'll be out.
    • kind of unbelievable how passively strong price action is today.
    • jeez gave this so much time, and contracts barely moved.
    • I'll take the profits, though.
  • I'm going to call it a day.
  • Well, if you were bullish today and bought right at open, you would have made lots of money.
    • Not sustainable, but happy for you if you did!

POST REVIEW

  • Well had some solid plans today, but price action did not want to produce decent moves at those levels.
    • took what the market let me take.
    • Best play was to buy at the open and hold and hope to the top!
      • not my strategy, but it is what it is.
  • Adhered to solid setups and took what was offered. 
    • Did sell a bit too soon on exits
    • Did enter a bit too soon on entries.
    • But locked in profits nonetheless.
  • I don't feel negative and stayed very much in the behavioral cycle I wanted to be in.
  • Must rinse and repeat!










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