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Option Day Trading SPY and TSLA: 4/13/23

 

My Daily Process for Trading SPY and TSLA Options

DAY GOALS & RULES

  • Focus on Intraday System Patterns A & B. 
    • Pattern A: reaction zone crossovers for an RZ reject or bounce. 
    • Pattern B: key levels for a KL reject or KL bounce.
  • Fewer trades with more confidence.
  • Focus on SPY and TSLA options ONLY!
  • Time to simplify the process and improve/reach the next level.
  • 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.
  • GIVE PLANS THE BENEFIT OF THE DOUBT AND LET THEM PLAY OUT.

PRE-MARKET PLANS

Market News

  • It looks like we have PPI at 5:30am PST as the high-impact news today.
    • Kind of indifferent about the markets now, but let's see where they want to go.

SPY

  • For today, I have these levels marked: 
    • Reaction Zones: 
      • 410ish (yellow zone)- Wait for the RZ cross-over. Also, I like the key-level area, so we can have an excellent rejection here to the downside.
      • 408.50ish (yellow zone)- Wait for the RZ cross-over.
      • 407.50 (yellow zone)- Wait for the RZ cross-over.
    • Key Levels:
      • 410ish (thick red dashed lines)- wait for the KL reject. This is also a nice RZ, so if it can hold, it is a possible RZ cross-over for more upside. 
      • 406 (thick red dashed lines)- Wait for the KL bounce.


TSLA

  • For today, I have these levels marked: 
    • Reaction Zones:
      • 185ish (yellow zone)- Wait for the cross-over. Also, a KL, so there is potential rejection here too.
      • 182.50ish (yellow zone)- Wait for the cross-over.
    • Key Levels:
      • 185 (thick red dashed lines)- wait for the KL reject. Also, an RZ, so if there is strength, wait for the cross-over for the bounce off of this KL. 
      • 176.50 (thick red dashed lines)- Wait for the KL reject.


RAW TRADING NOTES & COMMENTARY

  • Changing my method today. More focused on the RZ cross-overs for the RZ bounce/rejects and the KLs for the bounce/rejects only.
    • The key is to wait for them to set up and have clear exits for stops and profits.
  • TSLA RZ cross-over occurring...need to wait for the re-test.
    • the zone held...no play right now.
  • TSLA showing some strength now...possible KL will play soon.
  • very tight range so far in the markets...
  • 100% ready to go, and the market is not doing anything...just need to wait...
  • Got in SPY KL play.
    • stop at 410.50
    • exit 408.50
    • added 1 more contract
    • 410.80 new stop (the spot where my trade is invalidated)
    • right near my stop....market always has to test me.
  • TSLA nice reject, but I chose SPY, which seems to be a bit choppy.
  • If SPY can't break below 410...will take the gain or loss, whichever it is.
    • stop still the same but might move it to 410.50ish
  • SPY looks like it was a better RZ cross-over play.
  • Moving stop to 410.50 now.
  • let's see if it can break below 410.
  • TSLA excellent price action...I chose the more complex play...
  • 410 test coming up...possible RZ bounce plays here...but still in the KL reject. We will see which way this turns...lol
  • the other way to view it is SPY is forming a lower higher now, too, at 410.60ish
  • Looks like a lower high is forming....very tough reading the flow today....kinda frustrated that I had to manage and adapt to things...if I had been really strict probably would have taken a minor loss already...
  • back at the highs...still have not taken my loss...moved to stop loss back to 410.80
    • this smells the same as yesterday for the KL..... the exact opposite, though... I got out too early to miss out on the bounce...now I got in too early and trying to hold for the rejection...Looks like it can reject, but the market is really fighting.
    • I might be completely wrong....with my track record, I would bet on me taking a loss here....to be honest.
    • trying to let the plan play out, though.....
  • This will be my only play today...so let's see how it turns out
  • cut losses
  • switch to calls wants to break out and want to stay strong.
    • stop loss 410.45
    • exit 411.50
  • This will be my last trade, for sure.
  • mental capital is shot now...
  • annoyed today.
  • well got a little break out...just not going to give me shit...took my usual shit profits.
  • down on the day small.
  • frustrated.
  • Done for today.
  • my patience has entirely run out.
  • Blue line on the chart is where I ended the day, so I can see what I missed later...

POST REVIEW

  • Well, 100% ready.
  • Nothing really set up...needed to take a loss, then switched and made some back but absolutely no follow through with the markets.
  • BEYOND FRUSTRATING.
  • Rinse and repeat tomorrow.
  • Looks like the post charts on SPY had a more gradual continuation.
    • I was right to switch, but my patience ran out but will keep marking when I end the trading with a vertical blue line to track continuation, whether or not longer holds might be necessary, etc.





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