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Option Day Trading SPY and TSLA: 4/25/23

 

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.
  • BE WARY OF SUCCESS AND THE REGRESSION METRIC (MINDFULNESS)

PRE-MARKET PLANS

Market News

  • It looks like we have CB Consumer Confidence at 7:00am PST as the high-impact news today.
    • Looks like we are trending sideways for now.
      • let's see where we want to go today!

SPY

  • For today, I have these levels marked: 
    • Reaction Zones: 
      • 413ish (yellow zone)- Wait for the cross-over.
      • 411.50ish (yellow zone)- Gap down cross-over occurred. Wait for the re-test.
      • 410ish (yellow zone)- Wait for the cross-over.
    • Key Levels:
      • 415ish (thick red dashed lines)- wait for the KL reject.
      • 409.5 (thick red dashed lines)- Wait for the KL bounce, but I would not be surprised if we break this to the downside since we look so weak, so be aware of this. Keep an eye out for a variable change.

TSLA

  • For today, I have these levels marked: 
    • Reaction Zones:
      • 163ish (yellow zone)- Wait for the cross-over.
      • 161.50ish (yellow zone)- Gap down cross-over occurred. Wait for the retest confirmation.
      • 160ish (yellow zone)- Wait for the cross-over.
      • 159ish (yellow zone)-Wait for the cross-over. This is sort of blended with the 160 RZ, just extremely choppy around here...be cautious.
    • Key Levels:
      • 169.50 (thick red dashed lines)- wait for the KL reject.
      • 156 (thick red dashed lines)- Wait for the KL bounce.


RAW TRADING NOTES & COMMENTARY

  • I have my plans just need to wait.
  • TSLA looking weak might have some cross-over rejects forming...
  • Got in on TSLA RZ reject.
    • stop 161.50
    • exit 159
    • nice. Exited around the midpoint on a nice push.
      • probably selling too soon but needed to lock in profits.
      • If I had 2 contracts could have sold 1 and let the other one ride...
  • SPY didn't have the reject area I wanted, but RZ may cross over to the downside soon.
  • Looks like the market wants to go lower...tempted to take an RZ break play, but I won't...will wait for the confirmation for the RZ reject.
  • I might be ok with this as my only trade.
  • I will wait for other setups, but not itching to trade anymore.
  • Markets are acting really strong at 410...might just be a front, then all day fade coming....seen this many times... let's see what actually plays out today.
  • Grateful to have had one solid play today with this price action....most likely a ton of frustration today.
  • nice 410 RZ break down to 409.50. 
    • waiting for the bounce back up to test the resistance.
    • got in on the re-test of 410... let's see if we can break the 409.50 KL
    • 409.50 seems too strong, probably a better KL bounce play, but I was hesitant because everything looked so weak.
    • I just locked in small gains before it bounced too much...
    • wanted it to break 409.50, but level 2 had a ton of support
  • Tricky price action still.
  • Probably going to call it a day!
  • 409.50 cracking now...
  • Was there but needed more patience to fully capitalize.
    • Since I had a nice gain previously, I did not want to jeopardize those gains, so I did not want to give in to the risk of eating away at my gains.
    • In a way, it hindered me but been on the opposite side where what I did was the right decision.
  • Nice to be on the right track again, though.

POST REVIEW

  • Solid trades.
  • Solid execution.
  • It seems like I had the right idea for the longer-term fade on SPY.
    • it would have taken a ton of patience, and it is not really my style but a solid opportunity nonetheless.
  • Rinse and repeat.




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