AMD Trade on Sep 22, 2022 10:02 from bockr25: Tradervue User Stock Trades.

I entered the following trade after the NASDAQ started the trading day of 9/22/2022 with a very strong sell-off that included AMD confirming its recent breakdown from its key former support level of $75.

I usually wait for 1hr after the market opens to enter trades, but with the price moving so quickly & AMD confirming so strongly, I decided to enter the trade at 9:02 am CST, about 32 min after the market opened.

What Was Entered: Bought 3 Contracts of Nov 18 '22 $75 Puts for AMD for $2,346.

A tight Conditional Stop was Placed at $76 immediately just in case price action reversed quickly.

Bid-Ask Spread: 3-4%, Open Interest: In the multiple thousands

Why Was It Entered: I had been watching AMD's chart from Pattern Alteration Story's perspective at the $75 support level. We had a breakout day below $75 yesterday and a solid confirmation day today on higher than normal selling volume.

Initial Exit Strategy: Conditional Stop Order was placed at $76 upon entry. Looking to get to $70 as a level 1 price target and hopefully $60 as a level 2 price target. After looking at 5-year chart, it appears that the next support level after $70 may not be until $60.

I will wait for 20%-30% profits to switch to a trailing stop. Once 30% profits were hit, I decided to switch to a 20% trailing stop to give this trade plenty of room to run.

Room for Improvement:

Honestly, I felt very good about this trade overall. I think it was some of the best trade management I have done to date.

The Results: $993/42% Profit

On 9/27/2022, the markets attempted a very brief rally first thing in the morning. My profits gapped down from 40% to about 25% in overnight/pre-market trading. I decided to remove my trailing stop pre-market and manually manage the trade as I had a hunch the markets would reverse as charts on both the COMP/AMD still had bearish signals, the dollar continued to climb, and yields continued to climb higher.

I hung in there, and my patience paid off as the initial losses were re-cooped by the end of the trading day. As the COMP chart was actually on pace to close slightly higher yesterday and AMD seemed to be having trouble closing below $66.50, I decided to exit manually with a solid 42% profit.