Trade recap for 10/17/23

Trade: $NVDA 425p

• Reasoning: relative weakness/key level rejection

• Entry on the contract: 2.8

• Exit on the contract: 1.93

• Profit in percent: 30%

Today, NVDA gapped down following negative news and was showing significant relative weakness. When the market opened, NVDA broke down and sold off into 425 where it started bouncing. On the bounce, it approached 439/440 again which is a key range. When NVDA was approaching this range, buying volume started to dry up and it failed to get through a higher high at 239. This was the reason for an entry. Following the entry, NVDA quickly popped higher and stopped me out.

Trade: $SPY 440c

• Reasoning: daily consolidation breakout

• Entry on the contract: 1.27

• Exit on the contract: .88

• Profit in percent: 30%

Today, SPY started with a gap down but ended up bouncing with momentum and broke through the key 437.20 resistance. SPY has been trading in a range for the last 6 days and today was the fifth time to get through this range and again failed. I liked the momentum/volume in support of the breakout but it ended up reversing and the premiums for the 10/19 expiration calls werent holding well which also supported the exit of the trade.