Shared by
TechOptions
+3.35R This was a trade that I would not recommended for any beginners. At least how I played it. A confirmation and a full breakdown through support is suggested before taking another short position through a major level of support. However I was confidently able to anticipate the breakdown due to the market action today. I took a small nibble, then another nibble on an average down. Finally got the breakdown I was looking for. Scaled in and added another position as soon as the breakdown happened. This was my second trade of the day. I had a very nice first trade short, so had some padding coming into this trade.
Execution detail:
| Date/time | Symbol | Side | Price | Position |
|---|---|---|---|---|
| 2020-06-24 10:11:38 | 26 JUN 20 53 PUT | buy | $0.7900 | long |
| 2020-06-24 10:26:17 | 26 JUN 20 53 PUT | buy | $0.6900 | long |
| 2020-06-24 11:03:07 | 26 JUN 20 53 PUT | buy | $0.8200 | long |
| 2020-06-24 11:15:26 | 26 JUN 20 53 PUT | sell | $1.090 | long |
| 2020-06-24 11:15:26 | 26 JUN 20 53 PUT | sell | $1.090 | long |
| 2020-06-24 11:19:02 | 26 JUN 20 53 PUT | sell | $1.160 | 0 |
Comments
TechOptions
After the bull trap this morning, that first major drop was from people closing positions. A long squeeze. AMD was making lower highs, and lower lows. So was the overall market. I knew it was just a matter of time before she sold off again. I was up so much on my first trade of the day that I could afford to take a slightly riskier play. So I anticipated the sell off because of what has happening with the market as a whole today. Of course I didnt bet the farm. but I took a nibble, then scaled in once the breakdown was in fact confirmed. closed position well over target as she was showing signs of reversing. Then when she broke down again I opened another position. You cant be greedy in these types of market conditions. Set your targets, and once they are hit either start scaling out of your position or close it. This position was initiated from about 16 years of experience and just having a very good understanding of what is more then likely going to happen. This type of trade is dangerous without an understanding of what is going on. And I would never suggest a newer trader take part in it. Be safe, wait for confirmation of a reversal. I can get away with it here and there. But I make sure I'm padded from a loss before I do anything like this. Its very much an outside of the box play. When they work its awesome, when they dont you gotta take a small loss. They are either smashing through support or bouncing hard. no in between.
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Nice trade! Super curious to know your approach on this one. Thanks for sharing it!