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David, Oh well, back to paper trading. How is trading going for you? Alvin

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David, that’s the think or swim app. I have it on my desktop. I think it is 15 minute delay? Is that right. Plus, I am not familiar oh how to to set up chart of enter trades? Any tips? Thanks.
Alvin

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Teddi, 3/25, your SPY Trade 3, bought call 10:58, sold call 11:08, why didn’t you sell with a directional change at 11:05. You waited till 11:08. Thanks. Alvin

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Teddi, do you know of any broker that offers a site to practice option trading for free. Alvin

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David, are you paper trading or live? Alvin

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Hi Teddi,

Thanks for the annotated chart images that you posted today in your daily SPY trades! The pointers were very helpful. I do wanted to ask you a question about trade #7, What you made you buy additional puts on a green candle?

Thanks,
Alvin

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Thanks so much for your reply to my questions regarding entering orders, Teddi.

I noticed you bought calls today at 11:19 after you commented that the S&P could bounce from its previous weak support of 2,375. You made this trade before an uptrend was confirmed but after the 5 and 7 day SMAs, which to me indicate that the direction of the trend is changing, but the uptrend is not yet formed nor confirmed. In your opinion, could this trade have been replicated again at 11:34 after that small green spinning top candle?

Thanks for your insight as always

Alvin

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David, how is your SPY trading? Alvin

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Hi Teddi,

Thank you for the link to the trades from March 16th. This was a tremendous help! By analyzing your thought process from yesterday, I was able to paper trade today and found that you and I made the same entry points for our trades throughout today. I’m also starting to realize the benefits of selling a few contracts at a time to exit a trade, as although there could be a candle that would go against our trend, as long as the lines confirm the trend is continuing, it’s still a good idea to hang in there for some additional profits as long as the trend is our friend (this happened at the last trade of the day at 3:36-3:43 with buying calls, some of those smaller green candles were red at some point during the minute, and by hanging in there, I was able to realize a nice paper profit by the end of the trend)

I do have a couple additional question today that I was hoping you could provide some insight on. I’m using Charles Schwab’s Street Smart trading platform. I’ve been putting my orders in at market. When I put my orders in at market I realize that I’m having trouble making money immediately off of the trade because my order is filling closer to the “Mid-Ask” price when I’m buying, but will fill at “Bid-Mid” price when I’m selling. In other words, when I put in an order, it already costs me ~$.20 out of the gate because that’s the delta between the bid and the ask. How do you get the most bang for your buck when you buy and sell? Are you putting orders in at Market too?

Thanks so much Teddi! This has been an incredible learning experience

Best,
Alvin

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Teddi, re your SPY trade 3/16, your 10:30 and 10:31 entry where you bought the calls each time, can you tell me why you bought calls. Based on your criteria, I would not have bought the calls. Could you tell me what you see to make you take that position. Thank You. Alvin

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Teddi, today was not a good day. I took an $800 loss. If you have any material that might help, it be appreciated. I will be giving it a go tomorrow. Thank You. Alvin

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I guess, furthermore, what made you stay in your put trade from 2:02 pm today?

Thank you
Alvin

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Hi Teddi,

Thanks for your last reply! I’m back at it again today and am wondering about your thought process. We both entered trades at 2:02 pm to buy puts on the SPY. I started to panic at the sight of two consecutive green candles forming at 2:05 and 2:06 pm and got out at break even. After closing out the trade, I continued to watch the chart form and noticed that the 5 and 7 SMA were touching at one point and then parallel but with very little gap in between the two lines, indicating to me, that the signal was becoming weake. Being that I’m still new to trading the SPY live, was my thought process correct here? Thank you in advance for any insight you can provide

Best,
Alvin

Thanks,
Alex

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Teddi,

I actually tried the SPY day trading today. I had mix results, but ended the day up $400. I really didn’t do that many trades. I wanted to master the reading of the charts to help entry point. I don’t know for the life of me why I didn’t buy calls during Trump’s speech. I think maybe because it started with red candlestick before turning green. There was the fear of losing my profits for the day.

I have one question, you use 3/20 expiration, $250 strike and I used 3/13. $250 strike. I did that because of the big difference in the cost of calls and puts. Would my results be better if I used the 3/20 exp. at the higher cost.

Any insights you can give me would be appreciated.

Alvin

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Teddi, thanks for getting back to me. No this is great. If I need further clarification or want more, I will ask. I get the idea. Thanks. Alvin

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Teddi,

You said “There was also news today that many large hedge funds and investors, Bill Ackman included are now hedging for a “substantial” drop in the markets. So there’s that to scare us as well.”

May I ask how do they hedge?

Thanks.

Alvin

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Teddi,

Coronavirus is front and center. It’s on the news every tine you turn it on. Here in the SF, Bay Area, it is just nonstop re that one individual who was infected with Coronavirus of unknown origin.
So, it is not going away. Oh well, maybe the market will give us a red open and green close. We will see.

Alvin

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Teddi, I did close out 3 contract due to margin call. Still in margin call. Most likely, will need to close out 3 more contracts to meet the requirement. Maybe futures might change or I get lucky. One can hope. I will try to get some sleep tonight. Alvin

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Teddi, do you get a feel that today feels like a bear trap?

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Teddi, with the weekend coming up, do you see short covering where the market would go up or people will just unload and tank the market. I am surprise the selling have not slowed, you would think, those that want to sell would have sold already. The people left would be the one with margin calls. What is your take? Thanks. Alvin

I forgot, could mutual fund selling driving down the market.

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Teddi, I did roll my 11c of DIS, apparently my spreads was wider, I hit margin call. I guess I will deal with that in the morning. Still ended red. Just my luck, MSFT warn, oh well, we will see how it go. Alvin

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Teddi,

Thank you for being here to calm my nerves. As much as I trade, it still makes me nervous. Maybe it’s because I take my accounts to the limit. When it rains, it pours.

I did take advantage of the positive open and kick the can down the road on FB and MSFT. I feel those 2 bounces pretty quick. Even if I don’t recover, it might get high enough for a positive roll down next week. I also bought long put a few weeks out, so I can roll without thinking about the long put.

My biggest problem is DIS, I have 11 contracts that expire this Friday, with 1 contract at 139, 10 contract at 138. This one really tanked and I don’t see it bouncing until end of March when streaming go live in Europe and India. The announcement of a new CEO replacing Iger didn’t help. It did more harm than good. Really don’t know what to do with this one. I do think I need to roll to end of March or beginning of April to have a chance. Any thoughts would be appreciated. Just hope I don’t get assigned tonight.

As always, thank you for all you do.

Alvin

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I am just sitting on the sidelines, rolling some now. Concern with assignment.

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Teddi, thanks for getting back to me. Yes, .10 credit, I used it to buy the $70, 3/6 long put for .10. It’s a breakeven transaction. I was really lucky to get the roll before it tank today. I guess I will wait to see how it plays out. Thank you. Alvin

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Teddi, TSN went down more after CAGNY talk. I was able to roll down to $82 today from $83, credit of .10, exp 3/6. I am still holding 5 contract. What did you do with your TSN. I see you added last week. I did not. With did you think of the CAGNY talk, it tanked as it said it’s sales slowed to China due to Coronavirus. You would think once virus is controlled, China would have to import more pork and chicken. I definitely like your take of this. A quick response is appreciated. I don’t need anything lengthy. Thanks Alvin

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