Option Day Trading SPY and TSLA: 3/30/23

 

My Daily Process for Trading SPY and TSLA Options

DAY GOALS & RULES

• Focus on Intraday System Pattern A-C. 
• Pattern A: reaction zone crossovers for an RZ reject or bounce. Or a spike into RZ for an RZ reject/Panic into RZ for an 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 GDP Growth Rate as the high-impact news today at 5:30am PST.
• The markets definitely have been sneakily strong these last two days.
• Depending on the reaction, we could see a continuation or a pullback from all the strength.

SPY

• For today, I have these levels marked: 
• Reaction Zones: 
• 404ish (yellow)- already at the RZ. Let's see if we can get the cross-over for the bounce or if we have a strong pullback and spike back up, maybe for an RZ reject.
• Interesting that the RZ is lining up perfectly with the KL, so let's see what happens today!
• 401.50ish (yellow)- wait for the panic for possible RZ bounce or the cross-over for RZ rejection. 
• again, perfect confluence with the KL too.

• Key Levels:
• 404 (thick red/white lines)- wait for the KL reject or continuation pull back for a bounce. The next KL is at 406.50.
• confluence with RZ
• 401.50 (thick/red, white lines)- wait for the KL bounce. The next KL is around the 400 level.
• confluence with RZ

TSLA

• For today, I have these levels marked: 
• Reaction Zones:
• 196ish (yellow)- wait for the cross-over for the RZ bounce. Mid-range here, so a possible RZ reject play if there is a morning spike.
• 194ish (yellow)- another overlap for an RZ and a KL; wait for the panic to the RZ for possible bounce; otherwise, wait for the cross-over to the downside for the RZ reject.
• Key Levels:
• 197.50 thick red/white lines)- wait for the KL reject. The next level is 200.00.
• 194 (thick red/white lines)- wait for the KL bounce and a key RZ area. Interested to see how this plays out today. The next KL is 192.50 (not sure if this will hold), but I like 190 as the better/more conservative next level.
• Kind of a lot of KLs this time. I think we are in a very congested zone here. I definitely like the clarity of SPY today, so I will focus more on SPY and keep TSLA on my watch.

RAW TRADING NOTES & COMMENTARY

• Got in at the 404 SPY KL reject.
• I was up about $50 and was thinking about taking the gain but gave it a little time, and I am now back at the same level as I got in...the market will make me work for it and test my patience again today!!!
• We got a further pop on SPY, where I wanted to enter...this will be my new risk to exit. For now, need to hold and see how this plays out.
• Was down -$150 on that pop but now breakeven.
• The setup is still in play, so I will give this time.404.20 as my stop.
• Nice push-down sold.
• Again, probably selling too soon, but I do not care...it is better to lock in profits and stay in the positive trigger cycle. 
• Yup, now failing more. LOL.
• I was more willing to lock in profits because of the earlier entry.
• I entered at a decent place, but the ideal entry was on that pop.
• I got nervous about the pop-up and considered cutting losses.
• I definitely had an emotional roller coaster on this trade, but I executed and traded well by actively assessing my situation,
• Left like 0.20-0.30 cents per contract ($200-$300). Next time. 
• 100% on the right track. 
• Having increased confidence and patience could have made this trade better.
• I want to repeat these scenarios, so I must keep doing what I do.
• I missed the entry for the triple top. It's okay, I was busy doing other things, so I was not watching the screens.
• Seems like patience is needed for KLs to be tested later in the day.
• Might even get a nice RZ break to the upside on SPY. Will need another reaction at 404.25 to be sure...
• TSLA might hit the KL reject.
• Well, of course, the KL didn't hit, and I thought about entering but was like, "no, need to wait for the ideal entry," what does it do?
• rejects, 0.30 cents a  contract potential profit where I considered entering but wanted to be better and not repeat my mistake this morning.
• I guess this is the gray zones with entries...you just have to do the best you can!
• Just watching now...might call it a day soon.
• SPY RZ break might be setting up...
• I do not like this slow price action again.
• do not want to be flooded in frustration again.
• Well, I had the opportunity to get into TSLA KL reject play but did not partake. Looking like a solid reject now.
• Got in for the SPY Intra-day RZ break.
• had a decent profit but then decided to hold for a bit more and quickly wiped that idea from happening.
• I am in risk mode... possibly going to give back my gains, but I managed the trade well.
• came back down and sold... probably need to give this time like yesterday, but once again, the market aggravated me with the crap price action, and I would instead take my small gains and start fresh tomorrow.  So I am done for today with this trade.

POST REVIEW

• Definitely a different day regarding pre-market plans. The plays on deck have been unusual, and the price action has been divergent from the norm.
• I was able to get in on a solid KL reject on SPY, but definitely a gray zone for entry.
• Did manage the trade well.
• 100% staying focused, playing the right plays/staying in the positive trigger cycle.
• Need to keep repeating this!
• As I do, I can slowly incorporate increasing confidence and patience.
• Even with the news this morning, there was no market movement. Seems like all the fun was in the non-playable gap-ups!
• Took one more trade for the SPY RZ break, which turned out to be a choppy mess. I knew the market would figure out a way to frustrate me today!
• The strategy I use to placate my emotions is to practice emotional flow.
• This allows me to recenter to my baseline while minimizing emotional impact and increasing readiness for the next opportunity.
• I know I say the market, but in reality, it's me causing my frustration.
• As a way to cope with real-time influences/emotions, I need to just write out what I am feeling to keep me in check with the baseline and not let things bottle up, etc.
• I knew going into the trade price action was not the best, so most likely would be frustrated.
• But in the act/play, you are an emotional creature, and when things do not go according to plan, it is easy to blame external factors...I must feel it and express it.
• What you do after reflection will help you determine ways to improve, etc.
• So, going into this trade, I needed to vent my emotions to remain calm, but in reflection, I must look inwards and know that I very much put myself in the situation and was the cause of my frustration.
• Knowing this, you can choose what to do next.
• Be aware and have a plan in place.
• Or avoid it entirely.
• This all serves to have a better reaction time and be better prepared to capitalize on future opportunities.
• Looking forward to tomorrow!