SPOT Trade on Oct 31, 2019 11:05 from kerobo0000: Tradervue User Stock Trades.

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kerobo0000

 

Daily Report Card: C
-morning prep: D
-market prep: B
-stock prep: A
-level of focus: A

Rationale:
-2nd day play; SPOT opened above the 139.80-140.80 high volume area from the earnings day
-no fresh news since earnings date

Trade Strategy:
-enter 1 tier as price finds support at the top of the 139.80-140.80 price channel
-enter 1 tier if price breaks up through the 139.80-140.80 channel AND holds sideways OR finds support above channel

How much risk should/did I take?
-210; <2% of NLV
-risking 50-60 cents on SPOT; roughly 20-25 cents a contract (30-40 delta)

Recap / Trade Management:
-entered 1 tier after price pulled back to VWAP; admittedly got a bit scared and thought price was going lower and then I became aware that this was the pullback I was looking for
-price pulled back to VWAP and made a higher low
-after my entry, price drifted sideways until a large order came in at 11:18 (note how little volume traded during the sideways consolidation, unlike AMGN where a lot of volume traded during the sideways consolidation but the stock didn't have follow through to the upside)
-after the order, price traded slightly up, pulled back again and then made it's up move to the $144 daily level
-I scaled out at 143 (day 1 high) as price stalled and I wanted to take some risk off in case it made another retracement / higher low
-volume increased at $144 and price was barely able to print above 144 (confirms significance of level)
-$144 was my exit level and I tried to exit on the offer after price already hit the level; just need to get out at the midpoint, unless i'm anticipating a level getting hit
-note XLK / SPY not really supportive of the move (wonder if SPOT takes off on the next time the market has a trend day)
-had a second entry during the afternoon session as price coiled under 144, noticed the chart pattern on my phone and saw that price wouldn't spend much time under 143.50 on the pullbacks

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What did I do well?
-watch for the entry / not get too anxious and enter too early
-buy on the mid and offer on the ask
-had productive self-talk; mentally talked through what needed to happen before I stopped out (My open P&L went slightly negative, but price never made a lower low)
-Also mentally talked out my reasons to exit as I went into profit
-attempted to route my exit order to PSE on the offer when we traded up to 144 (order was not hit) - maybe this was the hint that price would not hold above 144 - continue exploring what occurs when I route orders to PSE

How could I have traded this better?
-there was a moment on the tape where I could have added size; tried to buy on the bid but was not filled and didn't want to chase price since the market was still weak (below VWAP)

What did the tape look like during the most important moments intraday?
-when price pulled back to VWAP at 11:04, the offer was stacked on the way down and even as price was resting on VWAP
-price was barely able to print below 141.40 (printed in the .30s two or three times when price pulled back to VWAP)
-then price slowed and popped back above 141.50 and then began printing in the 60s and I got in shortly after (didn't see all of this tape in real-time, definitely a bit slow to enter but it looks like I wouldn't have been able to get much of a better price after watching the replay)
-noticing that on after the pullback price was mostly printing closer to the offer (than the bid)
-at 11:19, the tape slowed down as price consolidated sideways and then a big 33k share order traded at the bid, seemed as though that order was holding price down
-price immediately traded higher at this time, that was the see it moment where I could responsibly add on 1-2 add'l tiers (I was trying to get filled on another tier at this time, was not putting all the activity on the tape together in real-time but intuitively liked the sideways price action)
-there was some size (2k shares) on the offer at 141.90 and almost looked like the offer would hold but buyers lifted it (most of traded between the market) and price quickly got above 142 (another see it moment)
-have seen now seen a pattern where large size is traded at the bid and then price quickly trades above the price of the order..have seen that pattern twice
-at 11:28/29 after the pullback, 3k shares kept flashing on the bid at 141.50...size would show, then disappear..show, then disappear...then the 3k order stepped up to 141.75 (another area where you could put on more risk)

Gain/loss relative to expected gain/loss:
-$134; gain in line with expectations
-if I risk on avg $40-50 (20-25 cents per contract) to make $130-140, that's risking $1 to make $2.5+


Execution detail:

Date/time Symbol Side Price Position
2019-10-31 11:05:46 NOV01 19 143 CALL buy $1.050 long
2019-10-31 11:44:24 NOV01 19 143 CALL sell $1.700 long
2019-10-31 11:54:39 NOV01 19 143 CALL sell $1.750 0
2019-10-31 14:32:41 NOV01 19 145 CALL buy $0.9000 long
2019-10-31 15:50:14 NOV01 19 145 CALL sell $1.000 long
2019-10-31 15:58:25 NOV01 19 145 CALL sell $1.000 0


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