Premarket plan: Following all major trends -4H & 1H timeframes-, if the price open above the $172.00 key level, I can see a little drop to this same level at the market open, and then a breakout above $172.50 to reach a new ATH. If the price open below the same key level of $172.00, I can see a rise to this same level at the market open, and then a pullback to the $171.00 - $170.00 level. On the bullish side I'd wait this drop to the $172.00 key level, that's where I'd take my first entry with a call option, with a stop-loss at the $171.85 breakdown, and a take profit at the $172.50 level. For the bear side, if at the market open I see a rise on the price to the $172.00 key level, that's where I'd take my entry with a put option, with a stop-loss at the $172.15 level breakout, and a take profit at the $171.50 level. On both sides I have a 3.3:1 risk:reward ratio. If the market moves on my direction I'd take my second entry at the daily open price breakdown/breakout.
Second trade plan: If my first trade doesn't workout and I get out with my stop-loss. I'd take a second entry at the next level of $0.50, placing my stop-loss $0.15 cents below the level of my entry.
Stop-loss: $171.35
Entry level: $171.50
Take profit level: $172.00 (Non-taken)
Second entry: Non-taken.
Trail-stop: None.
Plan respected? Yes.
What did I do different from my premarket plan? Nothing.
If I did not followed my plan, what could've or should've I done differently on this trade? Nothing.
Comments: Excellent risk management. All went as planned.
Execution detail:
Date/time | Symbol | Side | Price | Position |
---|---|---|---|---|
2021-12-08 10:30:23 | AAPL | sell | $4.110 | short |
2021-12-08 10:31:06 | AAPL | buy | $4.150 | 0 |
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