Daily Report Card: A-
-morning prep: B
-market prep: A
-stock prep: A
-level of focus: A
Rationale:
-Dept of defense awarded MSFT w/ 10B technology contract
-the stock has been trading in the 142.73-145.54 range for 2 weeks (10/28/19-11/8/2019); however, I consider the top of the range to be the premarket high after the announcement of the contract (146.40)
-stock broke to the top of the range yesterday (traded successfully) and I also found an opportunity to get long again today
-this is also a HTF technical leve as the stock was breaking to new all time highs
-no fresh news catalyst on this day
Trade Strategy:
-enter on pullbacks to 146.40
How much risk should/did I take?
~420 (3% of NLV)
Recap / Trade Management:
-MSFT hovered along 146.40 in the premarket session, and on the opened it traded down to 146.28 and quickly snapped back up
-I had to try 3 times before I caught the move on the 4th time, but I kept my risk very small; downside to this is will spend relatively more on commissions ($32 in commissions/25% of gross profit)
-kept chop to a minimum by cutting the first 2 trades / derisking whenever I thought the stock began to look weak; would have had more confidence if market didn't open in negative territory + all the bearish premarket sentiment
What did I do well?
-stick with a trade idea: 1) entering when price confirms idea + 2) adding size as I see more evidence on the tape
-did very well executing on my trading plan; this was accomplished by staying very familiar with MSFT and the price action of the last 2 weeks or so
How could I have traded this better?
-as I continue to better notify strength on the tape, I would like to take the steps to putting on a full position when I identify these 2nd day play & higher time frame technical setups; a full position defined as 1k of option premium (edit: full position is 5 tiers)
-do not re-enter position unless it gets back down to the level or withing 10-50 cents of the level
What did the tape look like during the most important moments intraday?
Where could I have been responsibly bigger?
Gain/loss relative to expected gain/loss:
-+27% after commissions; gain slightly under expectations based on % basis; however, I caught more than the meat of this move so very satisfied with the result
Execution detail:
Date/time | Symbol | Side | Price | Position |
---|---|---|---|---|
2019-11-13 09:32:36 | NOV15 19 147 CALL | buy | $0.5700 | long |
2019-11-13 09:34:10 | NOV15 19 147 CALL | sell | $0.5900 | long |
2019-11-13 09:34:16 | NOV15 19 147 CALL | buy | $0.6200 | long |
2019-11-13 09:43:37 | NOV15 19 147 CALL | sell | $0.6100 | long |
2019-11-13 09:44:17 | NOV15 19 147 CALL | sell | $0.6000 | long |
2019-11-13 09:45:47 | NOV15 19 147 CALL | buy | $0.6400 | long |
2019-11-13 09:49:01 | NOV15 19 147 CALL | sell | $0.6000 | long |
2019-11-13 09:49:11 | NOV15 19 147 CALL | sell | $0.6000 | long |
2019-11-13 09:49:18 | NOV15 19 147 CALL | sell | $0.5800 | 0 |
2019-11-13 09:56:19 | NOV15 19 147 CALL | buy | $0.7000 | long |
2019-11-13 09:56:33 | NOV15 19 147 CALL | buy | $0.7000 | long |
2019-11-13 10:00:59 | NOV15 19 147 CALL | sell | $0.8300 | long |
2019-11-13 10:01:32 | NOV15 19 147 CALL | sell | $0.9000 | long |
2019-11-13 10:03:29 | NOV15 19 147 CALL | sell | $0.9900 | 0 |
2019-11-13 10:28:21 | NOV15 19 148 CALL | buy | $0.4700 | long |
2019-11-13 10:33:25 | NOV15 19 148 CALL | sell | $0.3900 | 0 |
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