Trade Recap for 7/26/23

Trade 1: $JNJ 7/26 122.50c 1.23

• Reasoning: continuation/above average volume on the daily.

• Entry on the contract: 1.23

• Exit on the contract: .53

• Profit in percent: -56%

Explanation

Today, JNJ was setting up for a breakout/continuation play over yesterday's high at 172.70. When JNJ went over 172.70, I bought calls risking $.70. But soon after, JNJ went down and I had to stop out of the position. About 30 minutes later, JNJ went back green on the day and almost reached 174. It was a difficult trade and seeing a position go from red to green after you stop out can be trickier.

Chart:

Trade 2: $MSFT 332.50p

• Reasoning: relative weakness

• Entry on the contract: 2.5

• Exit on the contract: 3.5

• Profit in percent: +40%

Explanation

MSFT after earnings showed significant relative weakness and was approaching the key 336 support. When MSFT broke down under 336, I took an entry on puts looking for a move into 332. MSFT ended up finding support at 333 before bouncing and before we were able to take in 40%.

Chart:

Trade 3: $AAPL 195c

• Reasoning: key level reclaim

• Entry on the contract: 1.35

• Exit on the contract: 1.65

• Profit in percent: +22%

Explanation

AAPL was showing relative strength today as it was consolidating at the 194.50 level. When AAPL reclaimed 195 I took calls look for a push into 195.70 and then 196+. This was a smaller sized trade in sympathy to FOMC and the risk on the trade was large.

Chart: