NVDA and SPY trade ideas pay big yesterday. GME rockets on roaring kitty news -- Trade ideas for Friday June 7, 2024
NVDA and SPY trade ideas pay big yesterday. GME rockets on roaring kitty news -- Trade ideas for Friday June 7, 2024
Godmorgen traders. I’ll be trading from Aarhus, Denmark until mid June.
Yesterday I wrote that my bull plan was to get long on SPY 533 targeting 535 and overnight we got 535.
I also wrote that I had a bear plan for NVDA if it rejects 1260. We we got at 1255 double top. Guys this is wear learning patterns is so essential.
In today’s blog I’ll discuss the patterns and triggers to initiate trades. Finally, this wasn’t on yesterday’s blog, but I’ll discuss my alerts on GME and how to lock in gains overnight on options trades.
Lots to cover so lets get started!
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.
June 6 - NVDA 1220c $12 —> ($1200 —> $2100 potential)
June 5- SPX 5350c 0.30 —> ($3000 —> $45000 potential)
June 5 - META 490c $3 —> ($3000 —> $9500 potential)
June 4 - SPX 5290/95 bear calls $1.80 —> ($1500 credit potential, $1000 if held to close)
June 3 - SPX 5280p $5 —> ($500 —> $4500 potential)
May 22 - SPX 5280p $0.10 —> ($1000 —> $43000 potential)
May 22 - SPX 5300p $0.50 —> ($500 —> $15000 potential)
May 21 - SPX 5320c $0.50 (alert: 0.25 target $2-5) —> ($500 —> $6000 potential)
May 21 - SMCI 1000c $9.25 Swing (entry day before) —> ($925 —> $2100 potential)
May 17 - AMD 170c $0.20 Swing (entry day before) —> ($200 —> $1500 potential)
May 16 - SPX 5300p $0.20 Round 3 —> ($200 —> $2800 potential)
May 16 - SPX 5300p $0.50 Round 2 —> ($500 —> $2600 potential)
May 16 - SPX 5300p $1 Round 1 —> ($1000 —> $5000 potential)
May 15 - SMCI 850c $12 —> ($1200 —> $10000 potential)
May 14 - SPX 5240c $0.50 —> ($500 —> $10600 potential)
May 14 - SPX 5230/5225 bull puts $4 —> ($4000 premium potential)
May 14 - SPX 5245c $0.20 —> ($200 —> $6000 potential)
May 14 - SPX 5240c $0.50 —> ($500 —> $10600 potential)
May 14 - SPX 5230/5225 bull puts $4 —> ($4000 premium potential)
May 13 - SPX 5220/5215 bull puts $2.50 —> ($2500 premium potential)
May 13 - TSLA 170p $1.90 —> ($1900 —> $2890 potential)
May 10 - AMD 162.50p $0.25 (0.25 entry) —> ($250 —> $1600 potential)
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.
Thursday’s 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!
Please note all times are Eastern/New York regardless of what time zone I happen to be in.
SPY / SPX
I often say wait for levels for a trade and yesterday if bullish on SPY, you had to wait until 2pm for when the the 533 bull plan triggered. 534.50 was a possible long spot but the price action at 535 was selling so not worth the risk so what do you do after the first hour ? You take bear calls. I alerted SPX 5360 bear calls. I screwed up which contracts I did a vertical on but the signal was spot on. the credit sell on these went to 0 from 2.20!
Then at 2pm there was a sudden and sharp rejection of vwap and fast flush right to 533. We can either take a small start there or wait for a a higher low and one more dip. I place dip buy orders targeting 535, but unfortunately didn’t get filled. That is going to be the way these sometimes play out. I am typically looking for 3-5x for afternoon trades. I had the opportunity to get into 5350c calls at $2.50 that ran to 6, but since I was projecting a $5+ sell exit by end of day, I didn’t love the risk/reward and instead placed an order at 0.50 and $1 that didn’t fill.
When options aren’t priced favorably, consider trading futures.
NVDA
I had made a plan for an morning dip into 1200 for a possible long, and a possible 1260 rejection to get short. I also wasn’t planning to open a trade until after 10:30, however…. the price action said otherwise.
We got a double top during first 15 minutes at 1255, and then after first 15minutes we broke vwap and then broke morning low. At this point I’m targeting 1205, if that broke 1185. And boom within another 15 minutes we flushed right to the 1185 level. Noticed I didn’t hesitate, I alerted the short right away.. Why.. Because of process. This was an extended rally with a gap up and SMCI was also flushing so it made me think, what if there is profit taking in NVDA. Earlier in the week I had mentioned how I thought 1240+ was coming and we got that overnight and 1250-1260 is a reasonable spot to consider locking gains. We just ran from 750 to 1250 or $500 !!!!
I locked in along the way and exit majority by the time it got to $27-30 from $9!!!
On the flush into 1185 at I took a starter long and alerted
And we got to T1! what a solid morning and that was essentially good enough for me. I didn’t need to trade more….
until GME news came out…
GME
I had saw the price action in GME, and I got long earlier in the week targeting 31-33. And got out (smh). But then the roaring kitting live stream news came out and if you looked at the price action, it screamed that we could gap up overnight. At thist point around GME 37 I alerted I was taking GME 40c. these eventually ran to $9 and overnight a theoretically value of $25.
How do you lock in gains on call options overnight and after hours? You do it by shorting common shares. You limit any more upside, but if the price comes down by morning you can cover the shares and still have the calls! Please reread this and think through what happens here.
Let’s say you are in 10 40c for $3. And the stock reaches 60. That is $20 In the money. What do you do? Assuming you have a margin account and the capital to support it, you short 1000 shares at $60. This guarantees a minimum of 17k profit. How? What if today it goes to 80. You would be down 20k on the common shares, but up 37k on the calls. So that is 17k. So what if GME closes at 30? Then your short is worth 30k and your options expire worthless! Talk about some magic!
Learn to think out of the box and take control of your trading. Don’t be stuck in rigid thinking such as I’m in options and I have to wait until market open to take action.
Trade Ideas - Plan for Friday June 07
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
Watch for trend/continuation. Careful chasing. I will only go long dips after the first hour.
Let’s see if Jobs info triggers some moves