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Shared by
JRockTrades

 

TSLA

Jan 25, 2022 09:32


Shares traded: 40
Closed Gross P&L: $56.16

Tags:

Double Bottom Opening 5 Min VWAP

Big Picture

Tesla has been trading lower with the market. They have earnings tomorrow after the bell making it somewhat in-play. Additionally, the current market we are in with elevated VIX over 30 combined with a high beta name can lead to exaggerated moves.

Technical Setup

Tesla made a low of 910 on it's first one minute bar of the open market before running to over 920. It then started to pullback and I was looking for a double bottom and a move higher.

Reading the Tape

I put a bid in at 911 (which was VWAP also) with $2 of risk as it was pulling back in to this level. The bids went a little lower to around 910, but that level held.

Trade Management

As the trade started to work, I took of half $3 higher to cover the risk. I took further profits into the 923 area with the idea that the crazy volatility we've been seeing lately has meant that trades don't have follow through and it's better to catch a move and take profits. Price consolidated in a range between 921 and 928 and I trailed my stop on my remaining postion to right below the consolidation and it got hit.

I tried rebuying at VWAP, but that trade got stopped out with about $1.40 of total risk.

Conclusions

This trade worked well. I took appropriate size for the volatility we've been seeing lately. I traded it well and would have made more money had the second trade worked.


Execution detail:

Date/time Symbol Qty Price Position
2022-01-25 09:32:40 TSLA 10 $911.000 10
2022-01-25 09:33:50 TSLA -5 $914.000 5
2022-01-25 09:36:34 TSLA -2 $923.544 3
2022-01-25 09:40:42 TSLA -3 $921.090 0
2022-01-25 09:43:21 TSLA 10 $915.790 10
2022-01-25 09:44:40 TSLA -10 $914.370 0


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