Trade Recap for Wednesday 8-2-23

Trade 1: $SPY 450p

• Reasoning: key support breakdown

• Entry on the contract: 1.01

• Exit on the contract: ½ @ 1.22, ¼ @ 1.44, ¼ @ 1.01

• Size: Small

• Profit in percent: +40%

Explanation

Today, $SPY was starting with a gap down and was testing the key 452 support. There were a few scenarios that I was looking for today. The first few scenarios was focusing on a potential dip buy entry if SPY held a higher low at 452 but within the first 15-30 minutes spy failed to make a new HOD. Seeing this rejection at the HOD level told me that sellers were in complete control. When SPY broke the 452 support level I entered puts focusing on a breakdown into the 450 support. Progressively sold as usual.

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Trade 2: $TSLA 250p

• Reasoning: key support breakdown

• Entry on the contract: 2.12

• Exit on the contract: ½ @ 2.55 1.2 @ 2.10

• Size: medium

• Profit in percent: +20%

Explanation

Today, $TSLA was showing relative weakness and gapping down into the 255 support. Before I went short on this, I wanted to see it pop into the 260 range because I wanted to observe if it was going to fail here and sell off. It ended up pulling back into 255, bounced once, made a lower high and then later broke down 255. When it broke 255, I took an entry on puts and had more conviction on it because the market had already established a downtrend for the day. We sold progressively and got stopped out before it ran to 100%.

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