Premarket plan: Following all major trends -4H & 1H timeframes-, $AAPL has a uptrend very healthy and marked. At the market open I can see a pullback to the $175.00 key level. On the bullish side I'd wait this drop to the $175.00 key level, that's where I'd take my first entry with a call option, with a stop-loss at the $174.85 breakdown, and a take profit at the $175.50 level. For the bear side, if at the market open I see a rise on the price to the $175.50 level, that's where I'd take my entry with a put option, with a stop-loss at the $175.65 level breakout, and a take profit at the $175.00 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: $175.15
Entry level: $175.00
Take profit level: $174.50 (Non-taken)
Second entry: Non-taken.
Trail-stop: None.
Plan respected? Yes.
What did I do different from my premarket plan? Plan respected.
If I did not followed my plan, what could've or should've I done differently on this trade? Nothing.
Comments: Even as I did followed my strategy to the rule, I'm not entirely happy with this trade. I definitely wanted to go with a call option, but TradeStation didn't filled my order at the exact point where I wanted to enter, ($174.50), so, I went with the flow and cancelled the order, and waited to the next $0.50 level to take my entry with the put option. Risk was managed properly, but the call option would've been a very profitable trade.
Execution detail:
Date/time | Symbol | Side | Price | Position |
---|---|---|---|---|
2021-12-09 10:30:39 | AAPL | buy | $3.440 | long |
2021-12-09 10:30:57 | AAPL | sell | $3.320 | 0 |
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