C Trade on Sep 21, 2022 15:44 from bockr25: Tradervue User Stock Trades.

I entered the following trade after the FED rate decision, Powell's comments, and the SPY finally breaking through the key support level of 380 & NYSE breaking through the key support level of 14,400 with some force heading towards the close.

I watched the $46.75-$46.80 support level on C's 2-Day chart the last couple of days. I decided that if the NYSE & SPY break key support levels and if C strongly broke that intraday support level to the downside without fighting back, I would enter the trade.

That all occurred, so I entered the trade at 2:45pm CST, just before the market close.

What Was Entered: Bought 10 Contracts of Oct 21 '22 $47.50 Puts for C for $2,430.

A tight Conditional Stop was Placed at $47.90 immediately just in case the markets decide to pull a complete reversal tomorrow. I don't envision that happening, but today's price action was pretty wild.

Bid-Ask Spread: $2.37-$2.42, Open Interest: 25,353

Why Was It Entered: I had been watching C's chart from Pattern Alteration Story's perspective at the $48 support level. We had a breakout day below $48 yesterday and a solid confirmation day today on higher than normal selling volume.

Initial Exit Strategy: Conditional Stop Order was placed at $47.90 upon entry. Looking to get to $46 as a level 1 price target and hopefully $44 as a level 2 price target.

I will then wait to hit 20% profits to switch over to a 5-10% trailing stop.

Room for Improvement:

I should have bought a longer-term expiration, it was a rookie mistake, and that would have helped me realize potentially more returns and the ability for the trade to go more to the downside without interfering with my exiting the trade early due to my 30-Day rule coming into play.

The Results: $590/24% Profit

Markets fell sharply most of the day today, as I envisioned while placing the trade during the sell-off right before the close yesterday. C seemed to find some intraday support around $45.50-45.60 (a little past my level 1 price target of $46) and then began to bounce back a little bit when SPY & NYSE bounced off some key support levels (3,750 & 14,100, respectively).

I decided to book in my 20%+ gain and exit the trade before more time erosion, and potential profit erosion took place. I still managed to roughly meet my 30-Day rule, and this trade came out just about how I planned it. It was one of the better shorter-duration trades I have ever had.