SPY within striking distance of new all time highs! Trade Ideas for Mon Aug 11
The levels are working great and taking advantage of Friday option pricing yields massive gains!
Good morning!
What a spectacular day on Friday! Did you scoop AAPL calls at 0.20-0.25 per my idea on Friday? They ran over 2000%!!!! I sold 80% for 0.90-1. and let the rest run to $7+. Sold too much too soon think I would get at least one dip to reload at the gorgeous entry, but it only dipped to 0.50 and I missed the reload. Definitely could have executed it better, but I has massive gains within 30-60 minutes. No need to push it or ruin it!
How about TSLA if you are a THT PRO member? I alerted taking TSLA 325 and 330 calls on open with a target of 335. 330c exit last at the very top for $5 from 0.50
325c out at $9 from 1.50 entry!
I had way more conviction on TSLA than AAPL…
I have another wild idea for this week. I’ll talk about that in the Trade Ideas section. if right could be a 10-30x payout.
First, let’s review the trade/price action to learn from.
SPY/SPX
Morning Setup 1: PreMarket Range Breakout (new setup)
So I’m defining a new setup, but I haven’t worked through all the rules, but it works like ORB 15/ORB 60 rules, but using the premarket range.
Check this out. Using the SPX levels and given it is early morning one could take SPX 6400c.
SPX 6390c for 3.50-3 would be entry sell for 7-10 target. Got to 8.50.
There were 2 trades after.
Morning Setup 2: 4 level failed breakout reversal
If you count the levels, 636.40 was 4 levels. this is the exact opposite of the 622 failed breakdown trade last week. but the 4 level count was the key.
There was also a big difference, the bull strength market. So I didn’t expect a gap fill to come. This was a gap and go day.
So I told THT PRO members I was expecting 635 to come — how did I determine that? it was the ORB 15 level. Many times on strong names a retrace to that level will come. It’s a fantastic risk/reward long spot! Usually that dip will come after 11:30 or after 1:30. and then a rally/bounce after.
I took advantage of that…
Morning Setup 3: ORB 15 backtest and continue upward trend
This was text book. I loved this long. I wish I took 6390c but I decide to play safer and took 638c for $4. Here is what the 6390c did.
This was the mail SPY trades for me.
Let’s quickly look at AAPL and TSLA
AAPL
The setup on this was conviction that 225+ could come. Notice how SPY held about the 34ma on 1min. (its a great moving average to keep you in the trade! until price breaks it. I like to use 20ma for entries to join trend.
So scooping 222.50 for 0.20-0.25 is a no brainer for 10x reward! with 230 coming it turned out to 30x!!!
How did I know… I didn’t — it was amazing risk/reward and I get 10x on AAPL about 2 times a year. I also lose about 2 or 3 times on other yolo attempts, so long term it pays off.
TSLA
Morning Setup: Gap and GO. Pre Market Range Break out
Same situation as AAPL, strong conviction it was going to run. Why? Because my scanner in Edge alerted over $12 million in put credits on Thursday.
So with a 335 target. entering under 325 and 330c for under $2 and $1 respectively was a no brainer again
There is massive opportunity in this market. Are you taking advantage? Literally have planned and alerted trades that pay over 300-1000%! You will need patience to wait for entries and the exits. But if you have self discipline or trust bracket orders, my process can help you get the results you want.
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
If you are busy and want to see my commentary and ideas in real time consider joining THT-PRO.
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 or failed breakdown reversal at key level
Join at VWAP mid day or end of day
Keep it simple. Don’t chase, wait for support levels for great risk/reward entries!
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.
Securing Profits on Options overnight
Sometimes you get this massive paper gains overnight on options but you can’t secure it right? Well if you have a big enough account and a margin account if you have calls you can. What you need to do is buy or sell the stock overnight. and the option turns into a hedge against that position essentially securing your profits.
Trade Ideas - Plan for Mon Aug 11
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
OK so here is what I’m looking for. Overall I’d like to see some gap fill first and then support established after 10:30-11 and then scoop some swing long.
Ahead this week we have CPI numbers which should give us some action to make trade off of.
Finally I wonder if a certain company meeting with Trump this week strikes a deal. if it does it could move like AAPL and NVDA did…