Trade Recap for Tuesday 7/24/23

Trade: $SPOT 175c

• Reasoning: post earnings, relative strength

• Entry on the contract: 2.35

• Exit on the contract: 2.70, 2.2

• Profit in percent: 15%

Today, SPOT was on watch following a strong earnings report and the gap up over 160. At the open, SPOT quickly pushed right into 172 where it consolidated under this level for most of the morning. SPOT was able to hold 170 where I saw a good amount of buyers stepping up but it needed to clear 172 to run. When SPOT broke 172 I went long with the 175c. It took some time to work and I was only able to get 15% at the highs. I sold the position early due to the market pulling back which proved to be the right move since it broke back under 170.

Trade: $SPY 442p

• Reasoning: key level breakdown

• Entry on the contract: 1.14

• Exit on the contract: 1.40

• Profit in percent: 22%

Today, SPY failed again in the 424.50-425 range during the opening drive. We were watching SPY under 442 for a put play since this is a major support but the rejection at 424.50 added conviction for more downside. When SPY broke down under 442 I went short where I took most of the position off for 20%. The market today was a scalpers market and a see profit take profit type of day.