JamesSierra Journal

JamesSierra

JamesSierra

I want to make money so I can get a house. LETS GO lol
So tired of renting bad condo's.
Still waiting for my funds to clear but I had $150 in option buying power
so I got a lower strike than I wanted to get in this market!

Date 10/27/2021 - Time 12:02:17

Bought 1 QQQ Nov 26 2021 353.0 Put @ 1.46
Commission/Fee 0.66
Total Cost $147.32

Making charts now I'll post to explain the trade.
 
1a.png
QQQ making a top pattern

1a.png
 
The two indexes DIA and QQQ tend to move somewhat in tandem and I noticed a disparity between them which added doubt to the up move in QQQ. Bought the put on the X. It's a 30 day option expiring in one month. Wanted to buy the 365 put option but still waiting for funds to clear.

1b.png
 
I know this is a day late, but market showing to go much higher. IMHO

Your 5 minute chart shows a H&S top to sell or get flat that your ignored.
I never liked comparing Indexes unless you going to trade them as a spread.

I do understand cause you lack funds to do day trades, I would suggest you design a system on hourly or daily charts.
 
Very good advice. Trading system based on hourly or daily charts would be much better. My funds to day trade will clear next week on Thursday. End of next week I can day trade stock and get away from options if I want. Been taking me longer to get funds to clear and get higher option approval level than I hoped. Like right now I'm lowest option approval level so I can't even open a spread or a short to hedge and what not in the positions I have. So hands are kind of tied. I can't do much yet as far as option strategies because of my option approval level but that gets changed end of next week.

I could have sold that long #1 put position end of day for an ok profit there in hindsight. But who knows. If markets tank over the weekend all my put positions can turn profitable. I'm pretty bearish due to pressure for interest rates to go up but trying to pick a market top is not a winning strategy... but I'm doing it anyway lol. I added 2 more puts. Put #3 expires on Monday, put #2 expires on Friday next week, and put #3 expires in around 3 weeks.

November 2 and 3 next week, Tuesday and Wednesday, is a fed meeting where they could say they are going to raise rates which could send markets lower. Plus, 2-year treasury yields are up for year which is bearish for stocks I think. But then I have a put expiring on Monday before the fed meeting which may be a 100% $95 loss. Well they all could be losses and odds are they are unless we get some down moves in the indexes. The roll of the dice is pretty much for Monday at least on the option expiring on that day. If QQQ is above the strike of 384 on Monday that option is a loss. I got more time on the others and can cut losses selling them on Monday. Trading QID inverse index stock may be option. I don't really understand how these inverse NASDAQ stocks work though as far as fees. My friend told me they can charge you 2% a day or something. I googled one and it said they are good for day trading, not holding.

QQQ sure went strong into the close today. Gap down on Monday = Profits, Gap up = Losses. I would say 50/50 odds but option premiums kills those odds. That option expiring on Monday needs QQQ @ 184 just to break even as the premium will be gone.

2a.png
 
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What I see is a triple top to sell. I never entry anything on Doji bars, too much of 50/50 for me.
Exception of Opening Range Breakout trades, am never been buying new highs/selling new lows, risk far too great. Plus recent highs broke opening bar's high BUT didn't close above it and formed weird Head & Shoulders to sell.

If you going to use charts to enter, seems none of your posts has anything to read about charting?

Unless you have back tested huge amounts of data, you really are guessing when one discusses "odds".

IMHO
 
That was just the basic 1, 2, 3, top pattern. Market makes new top/resistance #1, market hits a low /support #2. market tests the high/resistance and can not pass it, #3 making a lower high, then the sell signal there was a break below support at #2.

3 9.png
 
I usually just day trade stocks. My father was a big trader and that's what he taught me to do. I'm just fooling around with options until the end of the week when I get funds added to day trade . Holding things overnight not really my style. In the first chart I posted in this thread one can see that was not a true 1,2,3 top as #3 was actually slightly higher than #1 but I went for it anyway. I was hoping for an early sell off due to the fed meeting tomorrow which did not materialize.

As a day trader, I usually get out fast when what I think the market is going to do does not happen. So these option trades are not how I usually trade. Today's trade is more my style, I got in and out in under an hour . Today was my attempt to close my positions and cut some losses which I managed to do.

10/27 Bought 1 QQQ Nov 26 2021 353 Put @ 1,46
11/1 Sold 1 QQQ Nov 26 2021 353 Put @ 1.01
Loss of $45.00

10/29 Bought 1 QQQ Nov 5 2021 385 Put @ 3.43
11/1 Sold 1 QQQ Nov 5 2021 385 Put @ 3.38
Loss of $5.00

10/29 Bought 1 QQQ Nov 1 2021 385 Put @ 0.95
11/1 Sold1 QQQ Nov 1 2021 385 Put @ 0.64
Loss of $31.00

11/1 Bought 4 QQQ Nov 5 2021 388 Puts @ 3.75
11/1 Sold 4 QQQ Nov 5 2021 388 Puts @ 4.67
Profit of $368

Total $287 profit.
 
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