SPY Trade on Jan 29, 2021 13:15 from Fedism: Tradervue User Stock Trades.

2/2/2021 - This was another ATR and RSI Setup, with some help from the Lower VWAP. After looking at SPY for the majority of the day, I noticed SPY rejected Previous day LOD and fell down almost 2 ATR. Looking a possible pullback of at least .5 - 1 ATR. This was a low risk trade. What first alerted me to this trade was the 5 min RSI which reached under 30 at around 12:15 pm. This was an indication that SPY was Oversold at this point and was due for a reversal back up. On top of that Volume was pickup up during this time that is considered lunch time, which further indicated that SPY was ready to move a direction and since it was price action was touch lower VWAP and was down almost 2 ATR, I surmised that SPY was ready to come up from here. I bought one contract of the Feb 3rd 366 calls at for 783$. This time I chose to get time on the trade, because the day before I had next day expiration, and it made me get a bit panicky. The price of SPY at this point was $369.25. MY target for SPY was $372.50.

SPY 5 min Chart 1-29-2021

SPY dropped a bit after buying the contract, but I chose to believe in the process. Over the course of an hour, SPY moved up $371.50 at 2:07pm. I was excited to see that the contracts were up and near my speculated price. But after 15 minutes I realized that we were staying stagnant at that price point. This reminded me of what happened on Thursday when SPY was holding for hours near the $382 point. I remembered how this pattern should a drop after, this prompted me to close my call before getting to my 372.50 PT. I closed the trade at 2:27pm at $855.

In Hindsight:
-SPY did drop after closing the trade, but then at EOD it did hit my PT and Continued to run MONDAY 2-1 and Tuesday 2-2. Leaving lots of money on the table.

Things I could do better
- I should have waited a bit longer, I was already in profit, and had 5 days till expiration. Should have realized that SPY would go up do to the big earnings from Goog and Amzn.
- I need to trust the process more. Especially if I truly believe its a low risk setup.