AMZN Trade Breakdown Step by Step (12/28/21)

What's going on guys? So in this video I'm going to break down my trading day which is December 28, 2021. So today I just day traded Amazon. I made about 1700 bucks for the on the day and kind of want to dive into that trade right now. A few things about today. Today was a risk off day, meaning I wasn't as aggressive. I traded I think about six contracts on this. Nothing too heavy. Market wasn't presenting a lot of opportunities and also, you know, because of yesterday's trade having a big loss, kind of didn't want to go in heavy with Amazon and be too biased, right? So now with that being said, let's go into this trade and just kind of understand where I got in, where I got out and understand my mindset. Now before I get into that I just want to break this down so I Amazon was on my watch list for the night before. So let me just go over that so you guys understand the mindset that I had before taking any trade. So last night I put Amazon on my watch list showcasing that we had a heavy rejection on this today did despite a green day from the market, watching for a weak market tomorrow and a 3380 level for conviction on this 3390 to 3380 could be a sell off point or a bounce zone depending on strength. So when we go to today around 3380 you can see we got multiple bounces and we got nice conviction here for continuation. And obviously this started moving up pretty nice. Now the reason I did not take this bounce trade, I'll show you where I got in and everything is because obviously market was not directional today. Market was very choppy, right? And a lot of times whenever I take my trades I want to identify spy. I want to identify the key levels on the market, understand what levels to pay attention to. And SPY did not give me that for today. So going into this trade, what happened? So I made about 7% on the trade, had a 2.35 R, put 22K like I said, size down day, nothing heavy, traded six contracts and now my entry on this was around 943 and 943 I got in about six contracts. So let's go to 943 and understand that. So this is where I got in 943. Now the reason I got in around 943 is once we got that huge bounce I was looking for a continuation rejection. So just to kind of give you guys an Idea of that, right? Let's look at spy. Let's look at 943. This is where we are on spy. 943. This is where we Are around here. 943. Now, second reason I kind of got in there is because we also had the vwap rejection. So I'm going to walk you through that right now. We look at this trade. Stock opens up. Stock opens up pretty weak, goes right into 3380. The trade that I should have taken after seeing tons and tons of rejection for this stock was I should have taken a short around 3400. And right when we broke this 3400 zone, I should have taken taking a scalp into 3380. I think that was the good trade or a good setup for the day or a possible bounce. There was also a good trade right here, which was part of my game plan, right. That I have listed right here. Now, obviously those two trades did not go through. So right when I saw the first bounce into 3400, which was my key inflection point towards the upside, I saw the first rejection kick in. After seeing the first rejection kick in, I'm like, okay, rejection is kicking in. We're seeing the next level for the stock not holding as well. So I'm going to enter in puts right here. So I entered six puts, right? I tried to originally get entered for 10. I only got six filled, right? My size was supposed to be 10. That's the. That's what happens when you use thinkorswim, right? So I try to get filled 10. I got six, but even 10, pretty small day yesterday. If you guys saw my yesterday recap video, I had about 30 contracts. Some days I have about 40. So my position to add up to 100, 120k sometimes. So looking at this position, which is about what, 22k, pretty small, not a big position based on the positions I usually take after that, I took three off. This was a super early off. This was a mess up on my end. I'll talk about that. At 946, I took half off. So at 9:46, right around here, I took half off. Now here I was trying to put a high limit order, meaning I was trying to put the sell on a high ask, right? So on options, you got the bid, you got the ask. So I try to hit the ask way far out. So if it does start moving, I'll get filled on the three. I accidentally hit sell on bid. When I hit sell on bid, my fill Was not the best you guys can see. I got filled around 38.95, made about $279 on that trade itself, when in reality I should have been around 42 bucks. So I left about another $1,500 on the trade here just because of this stupid order mistake. Right? And just to clarify what that order mistake was for some people that don't understand, a lot of times when I'm trading options, there's a bid and an ask for the options. Now when the stock is trading sideways or I'm looking to get out of the stock, not rushing to get out, but I'm looking to build a position, I'll put an order in a limit order closer or above the ask. So typically when the stock goes in my favor, the. The option premiums will sell for a higher price point because they're already listed on the ask point. So when it does start moving, I wouldn't have to scramble to put in my order. But in this situation, I put it at the bid. So I was, I, you know, I. The bid was around 38 something and the ask was around 41, 42 and I hit 38, which is why I got, I exited around here. So that was a dumb mistake on my end. But if you guys see four minutes later is where I scaled out around 42, 43 bucks, which, which was around 950. And that was right here. This is where I got out. And getting out right here, that netted me about 1500 bucks in the trade. And basically that was the whole trade. And now you look at the whole idea afterwards, you guys can see we have entered a chop zone. Now why did I exit here? Right. Some people may see this and say, oh, wow, you got out at the perfect time. The reason I exited here is a lot of times whenever I'm in an option trade, primarily an option trademark, if I get in before the move happens, option premiums really, really start moving well. So I like to take profits off the table because if we go in here again, there is a high probability we might see a bounce. So I don't want to risk that and give up this profit. So I start scaling out or exiting here. And if we see consolidation or hold, I may look to exit again or rebuild a position. So that's why I kind of got out around this. 3386. 3388. 3338. 88. Sorry. On the stock price, opposed to waiting for this perfect bottom that, you know, obviously never exists. And Then I didn't take another trade for the day. Because if you guys just take a look at spy, look at spy, look at the market all over the place. No real conviction, no real direction. Pretty chop. And that's why I wanted to go, you know, with, with a size off day with low risk. But even putting size down and everything out the way, like I told you guys, the main thing I want you guys to really focus on in positions. And besides looking at size of what the end number is, it's just look at the R multiple. Look at what a person made based on the risk amount on this trade. I risked about 700 bucks, made about 1700, should have made about 3k. And once again that 3k should have kicked in if my orders, you know, if I was better on executing these orders. And that's, that's the thing you guys got to keep in mind with options if you can execute orders well, especially when you trade these big names like Amazon. The, the spreads are 2 to $3 wide, right? The bid may be at 38, the ask may be at 42. So if you just get filled at mid or ask, that itself is going to make you a good amount of money. Like that right there. Me getting filled this from 39 to let's say 43, which is about 4 points, right, would have made me a few extra hundred bucks, right? Opposed to making $279, I would have made a couple hundred extra bucks. And obviously with more and more size, that turns into thousands and thousands of dollars. So with that being said, that is my trade breakdown for the day. Not a big day. And this is also just to show you like you're not gonna have massive days. Like I've had phenomenal days. 1700 bucks. I lost 26 yesterday, made 75, made 41, made 33. Like, you know, some days it's better to not have a trade or just be green than to like try to duplicate or replicate the success or the trades you've had. So if you are making 10.5k a day, don't say I have to wake up every day and make 10.5k. Some days just not trading and being flat is being is better than being red. 26k or being up 100 bucks or 1000 bucks or just being green for the day is better than being red. And that's a mindset you guys should keep so it doesn't kind of force you into taking bad trades and keeps you disciplined in the long run. With that being said, thank you so much for watching and I'll see you guys in the next video.