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Option Day Trading SPY and TSLA: 4/19/23

 

My Daily Process for Trading SPY and TSLA Options

DAY GOALS & RULES

  • Focus on Intraday System Patterns A & B. 
    • Pattern A: reaction zone crossovers with confirmations 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 no high-impact news today.
    • Looks like we are gapping down today, so maybe a pause on all this strength?
      • let's see where we want to go today!
    • We have TSLA's earnings today after hours, so we should have some decent plays coming up tomorrow.
      • it looks like TSLA cut prices again, so stock is down ahead of earnings too...

SPY

  • For today, I have these levels marked: 
    • Reaction Zones: 
      • 414.25ish (yellow zone)- Wait for the cross-over.
      • 413ish (yellow zone)- We gapped down already, so this can be a quasi cross-over, wait for the bounce up for the retest and possible RZ reject entry. (Interesting to gather data on these gap-down cross-overs!)
      • 411ish (yellow zone)- Wait for the cross-over.
    • Key Levels:
      • 417ish (thick red dashed lines)- wait for the KL reject.
      • 410 (thick red dashed lines)- Wait for the KL bounce.

TSLA

  • For today, I have these levels marked: 
    • Reaction Zones:
      • 182.50ish (yellow zone)- Again, a gap down, so it can be a quasi-cross-over event. Will see if we get a bounce back up for a possible reject entry,
      • 181ish (yellow zone)- Cross-over has happened. We had a retest and confirmation of the RZ pre-market, so let's see if we can get another test at the open.
      • 178.50ish (yellow zone)- At the level right now, Wait for the cross-over.
    • Key Levels:
      • 185.50 (thick red dashed lines)- wait for the KL reject.
      • 176.50 (thick red dashed lines)- Wait for the KL reject.


RAW TRADING NOTES & COMMENTARY

  • Got in SPY RZ reject
    • stop 413
    • exit 411.50
    • might move stop to 412.50 soon.
    • I do not like this slow movement.... probably selling too soon, but I do not care.
    • I'd rather lock in the gains...
    • decent +10% gain here
  • Possible re-entry on another test.
  • TSLA might have a re-test of the RZ too.
  • markets have been really tight and kinda choppy in the mornings...kind of annoying.
  • tight range....annoying.
    • just need to wait, I guess...
  • Since the price is below RZs, we might need to wait for cross-over/variable change.
  • I remember that whenever the market seems weak, it reverses and is steadily strong...so aware of it and waiting to see what it wants to do today. No rush.
  • cross-overs happening now...but my time is almost up, so I might not trade these...
  • could have gotten in on the SPY RZ bounce but never pulled the trigger....was very close...
  • I might get another chance, but time is almost up since I need to take my son to school.
  • got in on the nice pull back to the RZ
    • stop is 412.90
    • exit is the previous day's close 414.25
    • new stop 413.10
    • got out. 
    • again, probably selling too soon, but I do not care.
    • gotta go. I'll take my single here.
  • well, I'm back, and the charts are setting up nicely for an RZ bounce, but I do not like the price action...will just wait...too slow and kind of choppy still.
  • haha looks like I missed the opportunity... could have taken it, but I was playing it safe. Almost mid-day too...
  • Done for the day.

POST REVIEW

  • Excellent trading today.
    • took my singles and never looked back,
  • Had some opportunity for other trades when I returned to the markets but decided to pass based on the action.
  • Rinse and Repeat tomorrow.
    • Increasing contract position size to 2 on SPY and leaving 1 contract position size on TSLA.





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