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4/23/2018
We forecast an up day in the market and entered our position at 9:35 am. The market went against us slightly, and then started to rally and broke our first target high at just after 11 am. Our option hit a high of 56% and our profit % was about 90%. Because it had taken out the 1st target level, and the look of the morning thus far, we put our stop at break even. As it had almost stopped us out earlier in the morning, we were willing to give it too much room once the 1st target level had been broken. That is why we put our stop and break even and we were taken out as it pulled back just before 11:40 am.
4/24/2018
We forecast a down day in the market and entered just before 9:35 am as market was heading lower. The SPY broke our 1st target low just after 9:45, but then started to bounce a bit. At that moment we moved our stop to the daily level on the SPY of 268. We were giving it room to head lower, but also once a key level is broken we normally adjust our stops, and that is what we did here. Remember we are always watching the SPX and SPY together. The market bounced and then continued it’s fall downward. Once the SPX broke it’s first target level we were over 50% in our option. Our profit target was about 100%. So once 1st target level on SPX was broken, we moved our stop to Break Even. When the SPX broke our 2nd target level of 2668, the SPY was approaching its 3rd target level. We were watching the market very closely and had our stop at the 2670.50 level. That was half way between the 1st and 2nd target levels. We wanted to give the markets room to continue lower, but also lock in our profit if it turned. The market bounced and took us out just before 10:30 am for +59% profit. Now the market eventually sold off huge and we missed an even greater profit on this day. Sometimes we are taken out before a big move, that is part of trading. We just stay consistent and even if we miss some large moves, exiting like we did on this day has saved us more than it cost us.
4/25/18
We forecast an up day in the market, but the market went in the opposite direction immediately. Because it dropped nearly 20 points in first 10 minutes of trading, we didn’t trade on this day. That far of a drop that quickly, made our option so far out of the money, we were no longer willing to trade it. Thus no trade for us on this day.
4/26/18
We forecast a down day in the market, and entered our position just before 9:35 due to market conditions. Unfortunately the market started to rally and went against us all day, eventually stopping us out for -79%.
4/27/18
We forecast an up day in the market and entered our position a few minutes after 9:35. The market initially went our way and hit 68% in our SPX position. Our target was about 100% and since it was early and not above any of our target highs, we did not yet move our stop up. The market quickly turned and was nearing our stop loss at 10:45 am. We mentioned possible support levels of 2661 for SPX and 265.5 for SPY in our Daily Outlook. As it was nearing that level on both SPX and SPY we gave our stops a little extra room as we normally do. The SPY hit that level and immediately started to bounce. So we waited, and it looked as if the market would start to rally. But then it turned and we were taken out at our original Stop level an hour later for a loss of -75% . On this day we didn’t gain anything by giving our position more room, but often we will. The market bounced around the rest of the day in a fairly tight range.
For the week we were +1% ROI in our SPX Binary Trader and +47% ROM in our SPX Spread Trader. We look forward to a great week ahead day trading SPX and SPY weekly options.
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