Trace Recap for Monday 10/16/23

Trade: $MSFT 335c

• Reasoning: relative strength

• Entry on the contract: 2.90

• Exit on the contract: 3.5, 3.80

• Profit in percent: 31%

Today, MSFT started with a gap up on a few PT raises and was setting up for a move through 330. The focus for today was to go long over 330 but MSFT never really got the backtest of this level so it was harder to find an entry off of this level. We waited for MSFT to set up and then reclaim 333. Over 333 it was able to see a solid push into 336 before pulling back into 333.

Trade: $TSLA 255c

• Reasoning: relative strength

• Entry on the contract: 5.10

• Exit on the contract: 4.6

• Profit in percent: 9%

Today, the game plan for TSLA was to go short under 250 but at the open, TSLA was able to hold 250 and moved near 255. TSLA then held a higher low above the key 250 support and was gearing up for a push through 253 When TSLA reclaim 253 I went long looking for a move into 255. I went smaller on this position because TSLA didnt have any catalyst or relative strength but we did have market support. Price action was strong due to the higher lows but it ended up just consolidating for most of the day and stopped me out.