Trade Recap for 8/30/23

Trade 1: $NVDA 500c

• Reasoning: 3step reversal candle

• Entry on the contract: 4.05

• Exit on the contract: 4.85, 4.00

• Profit in percent: 20%

NVDA was one of the top watches this morning as it was able to show some solid strength the last few days. The game plan for this one was to go long over 490 looking for a push towards 492-495 and then 500. This morning, we saw a pullback on the 15 minute but a false breakdown. When the false breakdown happened and it reclaimed 490 this was a sign to me to focus on calls. After the entry, NVDA was able to move into 492 and 494 where I ended up getting filled for 20% before reversing and stopping me out near breakeven.

Trade 2: $SQ 58c

• Reasoning: relative strength, key level reclaim

• Entry on the contract: .85

• Exit on the contract: .6

• Profit in percent: 29%

Today, SQ was a side watch coming into the trading session. I wanted to see SQ test the key 58 level once to get an idea of the amount of sellers at this level. SQ tests 58 near the open but ends up pulling back off of this level. Following the pullback, SQ held a higher low and bounced back into 58. On the second break through 58 I went long because at this point, SQ had been making new intraday highs before the market which was signaling a buy. It ended up failing to continue and pulled back into the stop.