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Options Trading SPY [-31% +13% +14% +16%] 11/12/24

Options Trading SPY [-31% +13% +14% +16%] 11/12/24
SPY 1-minuet chart 11/12/24.

Day Metrics

{3} Wins {1} Loss

Day Rating: INDETERMINATE

Overview

SPY's price bounced off yesterday's lows during pre-market, and we started to bounce near the open. Price chopped around but ultimately began to go into a downtrend. There were opportunities, but the choppiness made for a choppy and less-than-ideal trading session.

Trades

[1] RZ Bounce+VWAP Bounce

Entry: At the open, decent volume pushed the price upwards above the upper marked reaction zone. I waited for the re-test to enter.

Exit: Price went against me briefly as soon as I entered but started to hold. I had several opportunities to lock in +8%, but I decided to wait it out. I held my position too long, and the price exceeded my risk. 0-DTEs move really fast.

[2] RZ Breakdown+VWAP Reject 

Entry: Price continued to drop and break down from a (-) TL. I waited for the re-test of the reaction zone near VWAP+(-) TL.

Exit: I did not want to repeat my previous trade outcomes, so I locked in my gains. Price continued to chop but then showed more weakness.

[3] RZ Breakdown 

Entry: Two intra-day reactions formed a new reaction zone. Price continued to have an overall downward trend, and I wanted to capture the breakdown. 

Exit: This was a quick trade, so I didn't want to overstay.

[4] RZ Breakdown Reject

Entry: Price quickly returned to the reaction zone for a re-test, and I entered.

Exit: Once again, I did not want to overstay and hold too long, so I locked in my gains.

Next Steps

Overall, my execution and mindset were satisfactory on my three wins. I took what was offered and did not want to overstay my welcome. However, my first trade was the catalyst that pushed me into that mindset. Interestingly, if the situation were reversed and I had not overstayed my welcome on my first trade and then adapted to overstay more than I did, I may have captured the complete downtrend today.

In retrospect, a much easier play would have been to take [2] and hold the downtrend. However, I am grateful for the opportunity today, even though I staggered my approach.

Moving forward, I must not overstay my welcome, as this will impede future progress if I do not capture gains when presented or let gains evaporate to only let losses exceed my determined risk.

*Supplementary Images

Options Trading SPY [-31% +13% +14% +16%] 11/12/24
SPY 5-minute chart 11/12/24.

Options Trading SPY [-31% +13% +14% +16%] 11/12/24
Order fills 11/12/24.
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