QQQ Trade on May 16, 2022 14:03 from srosas13: Tradervue User Stock Trades.

Situation The market has been beaten up and has negative catalysts around it surrounding interest rates and slowing growth from corporate earnings. This is the week of opex and vix opened the week at $30.00 which relatively speaking is high. As vanna decayed with a lowering vix and charm. The current opex has a lot of puts at 4100 in deep negative gamma, this was a perfect window to catch a trade to the upside. I wanted to see the Q's close above the 5 day after closing above the 5ma on Friday May 13th.

I wanted to ride this trade to the 20 day at $315.00 (at the time of putting on the trade) The objective was to get a reward of 15 risking 7. I wanted a late-day entry going into to the close Monday and close the trade at the 20 day By Friday on a run this week into OPEX. With a possible continuation rally post opex if the Vol trigger moved and the put wall shifted up to possibly 4100 or 4200 post OPEX. My objective also was to test run this trade with small size making a minimal commitment so that

Best case scenario - I take a win of $700 only adding to an already up month

OR

Worst case scenario - The trade completely fails and I get a test run of this philosophy with minimal damage.

This trade set up in the future has big potential that I can put on 500 to 1000 shares and let it rip. This setup appears in the options market about every 2-3 months when Vix is cranked up, the last time was March OPEX where the market rallied because vix was so high and spooked about rates and Russian/Ukraine.

My profit plan was to hold until a test of the 20 day within 1 dollar $314-$315 full size. Because I gain my intraday profit from ES I wanted to go for the full reward because the market is currently very unstable any sizable jump above entry I was taking no less than break even.

One train of thought is to put on the trade and hold it until risk giving it its full potential to work.

My philosophy currently has been to take all break evens and if need be reenter the market; why try to hold a trade in an unstable market?

Self-Talk
The market gapped up Tuesday and the trade was up 6 points from an entry at $300.30. I didn't take any profit because I wanted to practice patience and letting a trade reach its potential and I used such a small size if the trade didn't work I really didn't care and if it did I'll always take a $700 dollar payday and cash it.

Today the market was selling off and I took a break-even stop.

Coach-Talk
I really like this setup going into a major opex. I feel like it has real potential to work when the moving averages give me the correct R:R and also I have a compressing vix and also an options expiration giving me the potential to catch tailwinds as expiring put options are covered by buying back futures contracts. I felt like I handled this trade with minimal downside. Next time this appears if I risk 7.00 for 15.00 I can use 500 shares giving me a risk of $3500 but I can make $7500 a healthy payday.
5 Trade Components (5/5 A, 3-4/5 B, 2/5 F)
1. Defined Risk 7.00 ✅
2. Risk limited to proper dollar notional $350✅
3. Risk to reward for trade (Did the trade have an edge) Trade had edge going into opex with an elevated vix at 30.00. I wanted to see vix get to 22-21 and the market giving a fluff break out to the 20 day ma ✅
4. Profit plan defined and followed Trade gave me 6.00 points, Market failed today I took scratch. ✅
5. Trade behavior (fears) I traded this extra small so I can go through the motions the next time I have this I want to punch the gas its a great set up even if I dont get the whole 15.00, 6.00 bucks will do. ✅