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Options Trading SPY [-32% -21% +19% +32%] 11/14/24


Options Trading SPY [-32% -21% +19% +32%] 11/14/24
SPY 1-minute chart.

Day Metrics

{2} Wins {2} Losses

Day Rating: INEFFECTIVE

Overview

At 8:30 AM ET, some economic news was released: initial jobless claims and the Producer Price Index (PPI).

The initial jobless claims reported today were 217,000, which was better than expected and suggests a stable labor market. 

The Producer Price Index (PPI) for October showed a year-over-year increase of 2.4%, slightly higher than the anticipated 2.3%. This indicates a moderate rise in producer prices, with core PPI also rising by 0.3% month-over-month, which aligns with expectations.

In reaction to the news, SPY's price was choppy with a moderate downtrend. However, my system had several opportunities for entries.

Trades

[1] (+) TL Bounce + RZ Bounce

Entry: Price already had two big red candles entering the (+) TL. I gave it a shot.

Exit:  As soon as I got in, I had a slight gain in my direction, and I tried to exit but was not filled in time. The price continued to drop, and I gave it more time than I should have. This resulted in a more considerable percent loss than I wanted.

[2] (+) TL Reject + RZ Breakdown Reject

Entry: Since the price was weak and there was downward pressure, I waited for another chance. I entered as we retested the (+) TL and reaction zone.

Exit: I was rewarded quickly with a firm rejection in my favor. I locked in an excellent percentage gain.

[3] RZ Breakdown Reject

Entry: I was waiting very patiently for the reaction zone break. I needed to step away from the computer for a few minutes, which caused me to miss the break. I did not want to chase, so I waited again for another entry, but this time for the reject. 

Exit: Unfortunately, the price did not want to have a reject at the previous reaction zone and instead wanted to have a lovely bounce. I failed to cut losses quickly here. Most, if not all, of my hesitancy was due to my frustration of missing the previous break and my wanting to be correct and nail this trade.

[4] RZ Breakout Bounce

Entry: The price is always right. I adapted and waited for the pull back into the previous reaction zone. This was a great entry.

Exit: Price continued to have upward buying pressure and was about to take gains around VWAP but gave it more time to see if we could break above VWAP. Price did, and I locked in profits. 

🎥Trading Session Recording🎥 on 𝕏

-or-


Next Steps

Overall, I am not happy about my trade exits today. I clearly need to adhere to my risk of -10% and get out. 0-DTEs are in a whole other realm than 1-DTEs, and I need to minimize losses quickly. Despite the losses, I remained in the game and participated in other opportunities that eventually negated my mistakes. 

It sucks that I missed an exit opportunity on the first trade and an excellent entry for the intra-day break. It's just how it played out. However, the only thing in my control that I could have managed better was cutting losses at -10%. This is a must!

I must maintain a simple yet effective approach to my trading sessions and put risk management at the forefront.

*Supplementary Images

Options Trading SPY [-32% -21% +19% +32%] 11/14/24
SPY 5-minute chart.

Options Trading SPY [-32% -21% +19% +32%] 11/14/24
Order fills 11/14/24.




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