Premarket plan: Following all major trends -4H, 1H & 30m timeframes-, I can see that $AAPL has a very strong resistance/support at the $175.00 level. At the market open I can see a pullback to the $174.50 level and then a breakout over the $175.00 key level. On the bullish side I'd wait this drop to the $174.50 level, that's where I'd take my first entry with a call option, with a stop-loss at the $174.35 breakdown, and a take profit at the PMH level -$175.33-. For the bear side, if at the market open I see a rise on the price to the $175.00 level (probably PMH level -$175.33-), that's where I'd take my entry with a put option, with a stop-loss at the PMH level -$175.33- breakout, and a take profit at the $174.00 level. On both sides I have a 6:1 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: $174.85 (Non-taken)
Entry level: $175.00
Take profit level: $175.75
Second entry: PMH -$175.33- breakout
Trail-stop: $175.00 (Non-taken)
Strategy respected? Yes.
What did I do different from my premarket plan? I took my exit later than expected.
If I did not followed my plan, what could've or should've I done differently on this trade? Nothing.
Comments: I took a riskier trade than expected when I entered that second trade, but definitely risk was managed with the trail-stop. I felt confident today on that the market was going down very quickly today, and I was prepared to enter a put option immediately, but as I saw a confirmation on the other trend, I didn't hesitate to take this trade the other way.
Execution detail:
Date/time | Symbol | Side | Price | Position |
---|---|---|---|---|
2021-12-15 10:30:07 | AAPL | buy | $4.160 | long |
2021-12-15 10:30:22 | AAPL | buy | $4.360 | long |
2021-12-15 10:31:03 | AAPL | sell | $4.500 | 0 |
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