Trade Recap for Thursday 8-31-23

Trade 1: $SPY 452p

• Reasoning: weak PA key level breakdown

• Entry on the contract: .97

• Exit on the contract: .69

• Profit in percent: 28%

Today, SPY gapped up above the key 452 level but was struggling to gain any sort of momentum on this breakout. Price kept getting rejected near the premarket high and failed to get any move through this. Because of this price action I liked the market for a reversal. This ended up stopping me but it was just a bit early on the breakdown. It took SPY close to 3 hours to finally drop under 452 which is when puts paid.

Trade 2: $ META 305c

• Reasoning: relative strength and a key level reclaim

• Entry on the contract: 1.35

• Exit on the contract: .85

• Profit in percent: 37%

Today, META was able to get the inside day breakout over 297 and ran into 300. META was able to show significant strength all morning and when it broke over 300 we had strong volume, strong PA and market support at the time of the entry. META broke 300 which triggered an entry on calls but quickly after the entry, META premiums for this week’s calls died off 20% in a few minutes even though Price was holding at 300. This quickly decreased my conviction on the trade.