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Option Day Trading SPY and TSLA: 4/10/23

 

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
  • FOCUS ON ADAPTING TO PRICE ACTION
  • FOCS ON (1) CONTRACT FOR PLAN OPTIMIZATION
  • FOCUS ON THE ONE PLAN THAT CAN PROPEL ME FORWARD DAILY
Note: I am changing my daily routine. I will not post premarket; I will only post at the end of my trading day. I have been getting up at 4am PST to start my day but will now get up at 5am daily. Making some changes to hopefully get me on a better routine. Also, I will be decreasing my position size to 1 contract ($100-$200) to better manage my trades. Quite frankly, I  am pissed with not just my performance but the circumstances surrounding when I do increase position size and that my average gains are just not good enough as I rarely capture the gains I need to propel myself forward. So going to use this new schedule to make improvements for the better. Getting more rest, doing less busy work, decreasing risk so I can be more involved in the moves I want to be. We will go from there.

PRE-MARKET PLANS

Market News

  • It looks like we have no high-impact news today.
    • Let's just see where the markets want to go today!
  • For today, I have these levels marked: 
    • Reaction Zones: 
      • 408.50ish (yellow zone)- could have a spike for possible RZ reject.
      • 407ish (yellow zone)- near the zone right now. Let's see if this will hold or have a cross-over event for an RZ reject entry.
    • Key Levels:
      • 409.50 (thick red dashed lines)- wait for the KL reject. 
      • 406 (thick red dashed lines)- wait for the KL bounce. 

TSLA

  • For today, I have these levels marked: 
    • Reaction Zones:
      • 182.50ish (yellow zone)- wait for the spike for  RZ reject.
      • 180ish (yellow zone)- cross-over event has occurred right now. Wait for the retest to enter for the RZ reject.
    • Key Levels:
      • 185.00 (thick red dashed lines)- wait for the KL reject. 
      • 176.50 (thick red dashed lines)- wait for the KL bounce.



RAW TRADING NOTES & COMMENTARY

  • I am ready to go and fully prepared to optimize my one contract for the one plan that can propel me forward.
    • TSLA 180 RZ reject is the immediate plan I am aiming for here (green highlights in pre-market plans).
    • SPY has some setups but is unclear (green highlights in pre-market plans).
    • SPY 407 RZ cross-over occurred.
      • will look for a re-test entry.
  • I could have entered TSLA but missed it..will need to wait...was hesitant because it was right at the open.
  • Entered KL plan for TSLA
    • stop is at 176.
    • exit is a retest of RZ 
  • SPY RZ re-test setting up
  • Sold TSLA... going to concentrate on the SPY re-test.
  • I sold TSLA because I didn't like that SPY would hit the RZ with potential rejection and didn't want to risk TSLA going down. So decided to mitigate that risk.
  • LOL TSLA bouncing now...was premature to get out, but I played it safe. 
  • Possible entry into the TSLA RZ re-test now...need to focus and read price action.
  • Both tickers coming back to re-test KLs...just waiting to see what price action wants to do...
  • We have a nice Intra-day RZ for SPY at 406. Something to keep an eye on...
  • Got in the SPY RZ reject.
  • Stop is at 407.20.
  • New stop at 407.00
  • New stop 406.80
  • Got out.
  • Very choppy price action today.
  • I would have probably been red today if I had my old mindset.
    • Now that I only focus on one contract and one plan that can propel me forward, I eliminate anxiety and choppiness.
    • I played conservatively today and still had some decent gains.
  • SPY dropping now, finally...took my profits at least on the choppy way down.
  • 100% on the right track and still in the positive trigger cycle.
  • The only plays left worth my time is an Intraday RZ break to the downside on SPY.
  • Possible RZ rejects on TSLA, but the better play now might be a cross-over RZ bounce...
  • Possible reject at 408.50 on SPY too...
  • I love that my strategy yields a ton of potential plays once price action has a defined path...just need to wait for the ideal setup.
  • Got in TSLA RZ reject...180.50 stop loss.
  • Yup, stop loss hit.... these slow grinds are primed for creating breakouts...gave back some gains today.
  • My schedule is changing with my kids. This is all the time I have for today.
  • Price action seems strong, so I would not be surprised if we slowly ground up all day...
  • Also, it seems like it would be an excellent variable-changed idea on TSLA for the RZ bounce...but going to take it slow...no need to rush my progress now.
    • Plus, I need to change my schedule, too, so I need to get used to being available only during specific timeframes in the morning.

POST REVIEW

  • It was a choppy day.
  • I focused on my goals and adhered to one contract and one plan that can propel me forward. I had a few plays and played them well.
  • Gave back some gains in the last play, but it was worth a shot...
  •  TSLA had an excellent variable change play, which I missed, but I was glad to have thought about it before it happened. 
  • It was a low-anxiety day.
    • low position size and waited for clear plays or the ones with the most opportunity.





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