SPY gapping up premarket and now striking distance to new highs. Trade ideas for Thursday Aug 22, 2024
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Good morning traders!
Yesterday, I ended up taking advantage of THT-PRO community chat. Moe, a THT-PRO member, mentioned seeing heaving call flow for META the day before. So I created the levels META and liked the chart pattern. Very clean trade setup and used edge trade planner to plan the sell targets.
META ran to 8.50 within 30 minutes! How perfect was that 8.15 sell target?
That trade was a massive win and I’m thankful to Moe for spotting the opportunity. Great team work!
Let’s review the process in today’s blog and go over ideas for today.
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Overnight Action
SPY gapping up into 562. 565.16 was previous all time highs. Does market breakout before jackson hole? VIX is at 16 and NFLX is gapping down has me a little worried and cautious.
Introduction (for New Readers)
Welcome to my blog on Two Hour Trading—your daily source for market insights and trading opportunities. Here, you’ll find comprehensive market analysis, educational lessons, and trade ideas to help you excel in trading, all while spending less than two hours a day.
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Subscribers receive daily market analysis updates, educational content, and up to three trade ideas each morning based on real-life examples and my trading approach.
NOTE: screenshots from chat are from Edge Trade Planner. A platform available to THT PRO members. Join Us for live commentary and planning. Note my goal is to actively trade less than 2 hours a day finding 1 to 4 great trades a day.
What is Two Hour Trading?
Two Hour Trading is my system for finding and executing trades while spending less than two hours a day trading. My goal is to earn 100-300% on the capital I risk while waiting for 1000%+ gain trades to set up. Key benefits include:
High-quality trades with excellent reward vs. risk
Avoiding overtrading and losses from it
Trading to win vs. trading not to lose
Stacking the deck in your favor
2024 Alert Leaderboard
Here's a look at some of the potential gains achieved through our entry alerts:
Aug 21 - META 535c $3 → 8.50 ($3000 → $8500 potential)
Aug 20 - SPX 5600p $4.50 → 15 ($4500 → $18000 potential)
Aug 20 - SPX 5580p $2 → 7 ($2000 → $7000 potential)
Aug 19 - SPX 5600c $0.4 → 8.25 ($400 → $8250 potential)
Aug 15 - SMCI 600c (swing) $2 → 38 ($2000 → $38000 potential)
Aug 15 - SPX 5540c 0.50 —> 3.50 ($500 → $3500 potential)
Aug 14 - SPX 5400p 5.50 → 10 ($5500 → $10000 potential)
Aug 14 - SPX 5450c 4 → 10 ($4000 → $10000 potential)
Aug 14 - SPX 5450c 1.50 → 10 ($1500 → $10000 potential)
Aug 14 - SPX 5460c 0.20 → 3 (0.10 entry goal, took small 0.20) ($200 → $3000 potential)
Aug 13 - SMCI 600c swing $2.5 ($2500 → $10500 potential)
Aug 13 - SPX 5400p 17 stops 15 ($1700 —> $2300 potential)
Aug 12 - SPX5350c $8 stops 7 ($8000 → $25000 potential)
Aug 12 - SPX5340c $0.5 ($500 → $4500 potential)
Aug 09 - NVDA107c $0.2 stops .10 ($2000 → $7000 potential)
Aug 09 - LLY900c $3.50 stops 1.50 ($3500 → $11500 potential)
Aug 07 - SPX 5280p $10 stops 8 ($1000 → $8000+ potential)
Aug 07 - SPX 5200p $1 stops 0.5 ($1000 → $7000+ potential)
Aug 07 - NVDA 100p $0.8 stops 0.4 ($800 → $3300+ potential)
Aug 06 - SPX 5250c $10 stops 8 ($1000 —> $6000+potential)
Aug 06 - SPX 5250p $1.5 stops 0.75($1500 —> $13000+potential)
Aug 05 - SPX 5300c $3.50 stops 2.50 ($3500 —> $11000 +potential)
Aug 02 - SPX 5350p $5.50 (overnight swing from Aug 01) ($5500 —> $45000 +potential)
Aug 01 - SPX 5480p $4.50 ($4500 —> $65000 potential)
July 31 - SPX 5520c $12 ($1200 —> $3390 potential)
July 30 - SPX 5430p $2.50 ($2500 —> $30000 potential)
July 30 - SPX 5400p $2 ($2000 —> $10000 potential)
July 30 - TSLA 220p $1.50 ($1500 —> $5000 potential)
July 30 - SPX 5450c $0.20 ($200 —> $5000 potential)
July 29 - SPX 5450p $4.50 ($4500 —> $16000 potential)
July 29 - SPX 5460p $0.20 ($200 —> $1100 potential)
July 29 - SPX 5470p $1.5 ($1500 —> $8000 potential)
July 29 - SPX 5480c credit sell - collect $2700 risk $500
July 29 - SPX 5400p $2 out $6 ($2000 —> $6000 potential)
July 26 - SPX 5400p $2 out $6 ($2000 —> $6000 potential)
July 26 - SPX 5450c $4 out $12 reached 15.50 ($4000 —> $15500 potential)
July 25 - SPX 5450c $1, $1.50, and $1.75. target $10. reached $10! ($1000 —> $10000 potential)
July 25 - SPX 5450c $5. reached $41.70! ($5000 —> $41700 potential)
July 22 - CRWD 240p $1.7. reached $3.5! ($1700 —> $3500 potential)
July 22 - SPX 5580c $0.5. reached $3.3! ($500 —> $3300 potential)
July 19 - SPX 5500p $2. reached $12! ($2000 —> $12000 potential)
July 18 - SPX 5580p $5. reached $53+! ($5000 —> $53000 potential)
July 17 - SPX 5540c $2. reached $16! ($2000 —> $16000 potential)
July 16 - SPX 5660c $2. reached $10! ($2000 —> $10000 potential)
July 15 - SPX 5650c $1. reached $4! ($1000 —> $4000 potential)
July 11 - SPX 5600p $2. reached $23! ($2000 —> $23000 potential)
July 09 - Credit Sell SPX 5590/5595 bear calls 2.30-2.50 stops at 2.60 ( $2500 premium collected per 5k position risking $300)
July 08 - AVGO 1800c 13( $1300—> $2250 potential)
July 08 - SPX 5560p 2.50 stops 2.30 ( $2500—> $5000 potential)
July 08 - TSLA 270c 4.50 target 7.50 ( $4500—> $7600 potential)
July 03 - SPX 5520 2.5 ($2500—> $18000 potential)
July 02 - TSLA 225c 3.5 ($3500—> $8500 potential)
July 02 - SPX 5500c 2.50 ($2500 —> $10000 potential)
July 02 - SPX 5470 Bull Puts 2.50 ($2500 credit collected)
July 01 - closed TSLA Swing $2.65—> $12.00
**Past Performance is not indicative of future results
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Trade Recap for Wednesday Aug 21
SPY / SPX
Yesterday more or less turned into a pause/consolidation day while pushing higher. SPY pushed into 562 and dumped to 558.
Yesterday I wrote looking for for a dip on 558 to get long. Unfortunately that came when I was at the gym, and since I hadn’t planned to take any more trades until the last half hour, I didn’t plan a scoop entry for calls.
Using my process, I marked up how and where I would enter short and long posititons and where I would take profit.
The last half hour was a coin toss for and my ideas was wrong and gave me 20% of my gains from morning. (I’m ok with that, because if it did dump I would have had a big win). Note I’m being systematic in my bet sizing as well as profit taking. I played with 20% of my morning gains for the yolo.
NVDA
Didn’t dip to 126 for a long entry. Tapped 131 in premarket
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Education - How to Join a Strong Trend
The process I typically follow for joining a strong trend are as follows:
All day grinder: join on dips to 20ma
Multi-day grinder:
Join either on support test of morning lows/failed breakdown reversal
Join at vwap mid day or end of day
Keep it simple. Don’t chase, wait for support levels for great risk/reward entries!
Education - Systematic Profit Taking
How do I take profits? I keep it relatively simple. Depending on the entry and range to the next levels I typically with take profits 50-100% of my profits at 3-10R and then raise stops to above entry with a goal of letting runners take me to the next level or 2 and to then reload if I believe we are consolidating before the next leg.
I then repeat the same process on the reload.
Let me know in the comments if you have questions or would like to see examples, I’ll share them.
Trade Ideas - Plan for Thursday Aug 22
Stick to process. The process and trade setups I teach works. Rinse and repeat over and over again. There will be losses. Any good system will have them. Being systematic also means the gains will repeat and come again too. If you keep changing your system/process trying in an effort to never lose a trade, you will never get to where you want to go.
Ideas
Stick to process. If we open with a large gap, I will consider short, but for now stick to joining trend. (buying dips). SPY is within striking range to new highs.
Here are the ideas and levels I’m watching today. I’m nervous about longs with VIX and 16 and NFLX gapping down. Overall I feel like it’s too much of a chase here in to join long, so will wait for dips. I’ll also keep an eye out for gap up reversal trades for a quick scalp