Post by Phyregold on Jun 1, 2021 23:34:23 GMT
Okay, so based on last weeks challenge I, I said I had to scalp. However, there is no way I can scalp. I just cant do it because I'm trading commons all throughout the day. So that leaves me in a pickle..
I spent this weekend working with TDAPI and I decided to come up with a few formulas to tell me the best option based on my bias and time/price. As the day went on and I was looking at trades I have to say I was truly impressed. UPS and AMD were both on my list and several times I wanted to buy UPS however, I didn't because the premium was way to much. Eventually I found a fantastic spread but I had already played AMD, and with 300 I just did not have the funds.
So based on the math and me having 300$ I could only make 1 play, as I said I was looking at AMD and UPS (JETS and PLAY were there but I didn't like them that much).
So when AMD went running in the morning I left it alone, I don't chase. I figured there would be a pull back and retracement with the $TSLA news but $SMH wasn't having any of that. So lets talk about the $AMD play.
When AMD finally set up I wanted to take it long so I ran the app and found this:
So I bought the $AMD 85 C 7/16/21 @ $2.61. After last week I realized I have to evolve a bit, so I said okay, $AMD is close to 82 and I have 6 weeks for it to move 3$. What a lot of new traders don't get is you dont have to trade everyday. If you have a winner let it run. My point is lets say this AMD call ends at 87$ this week. The call would go from 2.61 to about 7$, why do I need a new play everyday?
So here is how I trade, typically never more than 10% of my account in 1 trade and S/L at 15%. Because I bought so much time the 10% rule is out the windows but the 15% stayed. What I found interesting about this trade is even through all the choppynes and the EoD weakness I didn't get 15% until coming up on LoD break. Which I find really fascinating and intriguing.
What's crazy about this trade is if I wanted I could have gotten out for almost break even.
So when I saw we were bouncing off the opening of a day late in the day I bought insurance. Basically an OTM contract that was in the opposite direction of what I wanted. So as I saw the weakness come in I decided to buy a OTM 79 P 6/4/2021 for .33$.
The idea here is I am about to lose 38$ on the trade if I get stopped out, but if I get stopped out and the day went red, I can live with that. The idea here is I need the Put to move 1-1/2 strikes to get my original 38$ back, so I bought insurance. And if the stock ripped green I can live with that because my big play would go green.
So I got stopped out and now left with a 79 P @.33. Currently AMD closed at 80.81 and is trading at 80.66 AH, so the insurance might pay off big time with a gap down.
I spent this weekend working with TDAPI and I decided to come up with a few formulas to tell me the best option based on my bias and time/price. As the day went on and I was looking at trades I have to say I was truly impressed. UPS and AMD were both on my list and several times I wanted to buy UPS however, I didn't because the premium was way to much. Eventually I found a fantastic spread but I had already played AMD, and with 300 I just did not have the funds.
So based on the math and me having 300$ I could only make 1 play, as I said I was looking at AMD and UPS (JETS and PLAY were there but I didn't like them that much).
So when AMD went running in the morning I left it alone, I don't chase. I figured there would be a pull back and retracement with the $TSLA news but $SMH wasn't having any of that. So lets talk about the $AMD play.
When AMD finally set up I wanted to take it long so I ran the app and found this:
So I bought the $AMD 85 C 7/16/21 @ $2.61. After last week I realized I have to evolve a bit, so I said okay, $AMD is close to 82 and I have 6 weeks for it to move 3$. What a lot of new traders don't get is you dont have to trade everyday. If you have a winner let it run. My point is lets say this AMD call ends at 87$ this week. The call would go from 2.61 to about 7$, why do I need a new play everyday?
So here is how I trade, typically never more than 10% of my account in 1 trade and S/L at 15%. Because I bought so much time the 10% rule is out the windows but the 15% stayed. What I found interesting about this trade is even through all the choppynes and the EoD weakness I didn't get 15% until coming up on LoD break. Which I find really fascinating and intriguing.
What's crazy about this trade is if I wanted I could have gotten out for almost break even.
So when I saw we were bouncing off the opening of a day late in the day I bought insurance. Basically an OTM contract that was in the opposite direction of what I wanted. So as I saw the weakness come in I decided to buy a OTM 79 P 6/4/2021 for .33$.
The idea here is I am about to lose 38$ on the trade if I get stopped out, but if I get stopped out and the day went red, I can live with that. The idea here is I need the Put to move 1-1/2 strikes to get my original 38$ back, so I bought insurance. And if the stock ripped green I can live with that because my big play would go green.
So I got stopped out and now left with a 79 P @.33. Currently AMD closed at 80.81 and is trading at 80.66 AH, so the insurance might pay off big time with a gap down.