Market range break and gapping up. Trade ideas for Friday May 10
Being systematic pays. Learn how I was wrong on targets but still got 5x !
Good morning traders!
So yesterday was fun. We caught a nice mini scalp short on NVDA and nailed SPX calls for all day grinder and as will systematically planning and collecting 5x on SPX calls in the afternoon.
In today’s blog I’ll explain the plan and reasoning as well as how we and why we still banked even the we didn’t get close to the targets.
There will be some good learning nuggets in there.
As for today, I am writing this blog well before we get premarket action so I’ll be looking for market to continue its breakout/rally unless we gap up 2 to 3 points.
Introduction (for New Readers)
Welcome to my blog on Two Hour Trading, your daily source for market insights and trading opportunities. In this blog, I will provide you with a comprehensive analysis of the market, educational lessons, and trade ideas to help you stay ahead in your trading journey and best of all doing it less than two hours a day.
What Subscribers Get
Subscribers to this blog will receive daily updates on market analysis, educational content, and up to three trade ideas each morning, all based on real-life examples and my personal approach to trading.
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?
It’s 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 setup. Key benefits:
High Quality trades with great reward vs risk
Avoid Overtrading and losses from it
Trading to Win vs Trading to Not Lose
Stacking the deck in your favor
2024 Alert Leaderboard
(I’ve decided to include a leaderboard so you can see what potential the 2 Hour Trading System has)
The following is based on entry alerts.
May 9 - SPX 5210c $1.25 (1-1.50 entry) —> ($1250 —> $6200 potential)
May 9 - SPX 5220c $0.20 —> ($200 —> $1100 potential)
May 9 - SPX 5200c $3 —> ($3000 —> 15800 potential) (dipped to 2.20)
May 8 - SPX 5200/5205 bear calls $1.20 —> ($1200 premium potential)
May 8 - SPX 5190/5195 bear calls $1.50 —> ($1500 premium potential)
May 8 - SPX 5180c $4 —> ($400—> $1100 potential)
May 7 - SPX 5190c $1 —> ($1000—> $4000 potential)
May 7 - SPX 5190c $1 —> ($1000—> $4000 potential)
May 7 - DIS 105p $0.40 —> ($400—> $1600 potential)
May 6 - SPX 5170c $3 —> ($300—> $1100 potential)
May 6 - SPX 5175c $0.40 —> ($400 —>$7000 potential)
May 3 - SPX 5150/5155 bear calls $1.50 —> ($1500 premium potential)
May 2 - SPX 5020p $7 —> ($700 → $2180 potential)
May 2 - SPX 5070c $1.20 —> ($1500 → $7200 potential)
May 2 - SPX 5070c $3—> ($3000 → $7200 potential)
Apr 30 - SPX 5080p $3 —> ($3000 → $45000 potential)
Apr 23 - SPX 5060/5055 bull puts - Entry $1.75 ($1750 premium potential) drawdown < $200
Apr 22 - SPX 5050c swing - $5.50 → ($5500 → $42000 potential)
Apr 22 - SPX 5000c - $3.20 → ($3200 → $39000 potential)
Apr 22 - SPX 5020c - $0.20 alert, dipped to 0.55, fill at $0.70 → ($700 → $20000 potential)
Apr 19 - SMCI 750p - $1.50 → ($1500 → $38k+ potential)
Apr 19 - NVDA 800p - Entry $0.5 ($500→$40k potential)
Apr 18 - SPX 5050c - Entry $6 ($6000→$16000 potential)
Apr 18 - SPX 5020p - Entry $4 ($5000→$20000 potential)
Apr 16 - SPX 5140/5135 bull puts - Entry $2.50 ($2500 premium potential) drawdown < $300
Apr 12 - SPX 5100p $1. (dipped to 1.30) - Entry $2 ($2500 premium potential)
Apr 11 - SPX 5180/5185 bear calls - Entry $2.50 ($2500 premium potential)
Apr 10 - SPX 5180/5185 bear calls - Entry $2.50 ($2500 premium potential)
Apr 10 - SPX 5170c - Entry 0.50 ($500 → $5000 potential)
Apr 9 - SPX 5185/5180 bull puts - Entry $3 ($3000 premium potential)
Apr 9 - SPX 5205c - Entry $0.50 ($500→ $6000 potential)
Apr 8 - SPX 5225/5230 bear calls - Entry $1.20 ($1200 premium potential)
Apr 8 - SPX 5200/5195 bear puts - Entry $0.10 ($1000→ $8000 potential)
Apr 4 - SPX 5250p - Entry $4 ($4000→ $100k potential)
Apr 4 - SPX 5180p - Entry $1.30 ($1300 > $32k potential)
Apr 3 - SPX 5175/5170 bull put - Entry $1.50 ($1500 premium potential)
Apr 2 - SPX 5175/5170 bull put - Entry $1.50 ($1500 premium potential)
Apr 2 - SPX 5205/5200 bull put - Entry $1.50 ($1500 premium potential)
**Past Performance is not indicative of future results
For live alerts and market commentary click the button below.
Wednesday Price Action (Education)
You don't try to make $100,000 ...You don’t start by saying, I’m going to make the biggest most profitable trade and turn $1000 into $100,000 and fix all my bad trades before.
You say, I’m going to plan and execute 1 trade as perfectly as I can today. You do that every single day, and soon you'll have a $100,000 and likely much more!
SPY / SPX
Sometimes you get the 2 level move in the morning and you work is done in less than 2 hours.
That was certainly the case yesterday.
Using the price action in the morning I had wanted a dip to get long for a 2 level move up. That meant 5208 as target ad if it came early the SPX 5200c will hit 10-12.
With that expectation I make a plan to scoop. between 2 and 3 on 5200c.
Here is the plan I alerted before market open. It’s rare that i have conviction and share a detailed plan before the open so this was thought out.
Sure enough, market dipped to about 2.20 and then ran to $15+. T1 and T2 were met in first 2 hours.
In the afternoon, I started a logic plan of what if we broke out from morning highs, and ran 50% of the way to the next level at the close. The next level after 5208 was 5235. so 50% of that is 5221. Using this as my logic basis, I reverse engineered.
I said 5220c for $0.20 gives me 5x at $1 with upside of over $10+ if a major rip comes.
I also though 5210c for $1 also gives me possible rip into $11-25. so $1-1.50 is great risk reward.
Finally we have my profit taking process. When taking yolos for end of day I will almost always lock 80% of gains at 3-5x. even if potential for 10-20x is there. It’s just how I trade these risky vehicles.
Sure enough we got the dips right to planned targets and rips to 5x. So 5210p dipped to 1-1.50 and ripped to 6 and 5220c dipped to 0.20 and ran to 1.
Experience has taught me don’t hesitate in the last hour when you get that dip and that squeeze, take the gains.
Typically when a stock hits a strike price, the contract will have some premium and one can sell for $3-5. and when momo for a further strike comes, you can sell for 5-10x the low before it goes to 0.
Thank you SPX for following the rules and system.
Trade Ideas - Plan for Friday May 10
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.
Market is gapping up in premarket. I’ll be looking for some profit taking. Remember we get inflation numbers next weeks, so folks may want to go risk-off on positions ahead of weekend.
Ideas
Lets’ go over a few ideas. Remember I’m looking for 1-3 solid trades a day. Yesterday there were 4. Focus on planning and execution and the profits will come. This requires patience for the ideas to setup and the price action to validate.