How I Made $39K Day Trading $SPY || 9/14/22

So today I made about $39,000 shorting the market. Basically I played SPY and I got puts and I played this whole move down. So in this video I want to show you guys my full game plan. Where I got in, where I got out, and how I essentially was able to basically make a trade of $39,000, 61% return and about a 4R trade, right? So with that being said, let's dive right into it. So let's start off with our overall game plan, right? So obviously before we get into the day, we want to look into our game plan. What's the reason for us taking this trade? Why are we looking at the stock? What are we looking at the overall market before the market has opened. So essentially with the market, the first set of note I had was we had a big move down yesterday looking for a bounce today or hold today. My watch list, I only had SPY on my watch list. So when we look at Spy and we look at the overall market, this is the only thing I had on my watch list for, for the day. And what I wrote, wrote down here IS I said 392 was a low continuation bounce zone, which is this 392 area, right? And then I was watching the open around395,396, which is the reject area. So that's essentially what I was watching for SPY today. Now also going into today, I had less kind of focus on forcing a play or taking a play. It was more more of a relaxed type of day. Now the reason I shared that is because typically when we have a big, big move like we did yesterday, I usually usually like to stay cash or like to take it. So however, today we had a pretty solid opportunity, in my opinion, on taking a nice short on spy. And that's exactly what I did. So let's dive right into that trade. So essentially what I did is I bought puts on spy. I played the 393 puts, and this is essentially where I got in. I got in with about 250 contracts. I had two different ads. So I had a total of 500 contracts, which puts my position at $63,000 invested. Right. However, with $63,000 invested, I was risking about eight to maybe $10,000 on the overall trade. If I was wrong, I came out of the trade making about $40,000. And once again, that's something I want to talk about. Right. A lot of people focus on this number. And obviously I put this number out there just because it's going to attract people to pay attention and watch. But guys, this is not the number that matters. What matters is essentially this. What is your R multiple? How much are you essentially risking on a trade and how much are you making based on the amount that you risked? So in this trade I risked about $8,000 based off my stop loss for the option and based on my final outcome of the trade, I made about four and a half times my initial risk amount, which was 40,000. And once again, don't want you to focus on this number. I want you to focus on the R multiple. What is the R multiple? I always talk about this and I focus on it a lot. Right. So now let's talk about the trade. So the setup I had was the morning top rejection. In the morning top rejection. The central play that I had was my first entry that I took was at 10:14am My second entry was at 10:16. So let's kind of dive into that and understand the second by second action. Market opens, right? Right. When the market opens, we bounce off 393. So essentially right when you went into 393, I did think about playing the bounce here. This was a trade I was very, very close to taking. We made a got the second rejection and I was like, you know what, I feel a little bit scared. I am going to sit this one out. I had a good day yesterday. So I'm not going to essentially take on a position right now. Didn't take the position. We start saying staying flat and I start seeing a lot of rejection. First rejection of 395. Right. Second rejection around that area again, 395. We are also crossing the 10:00am Mark. So at this point I'm like, okay, we have something going on, right? We're getting some sort of rejection. Market isn't able to bounce and continue the bounce and show a nice reversal. So maybe we might keep fading on for the day and slowly bleeding out or we go sideways. So I said, you know what, I'm going to look for a short position because we see constant rejections around the 395ish zone. So I add 250 contracts around 1014 and then another 250 contracts around 1016. So when you go to 1016, this is where I add 250. And I took my first entry right here making the assumption that we're going to break the 394. I could have maybe gotten a better entry on this top. But after seeing the rejection rejection, I was like, let me get in, get in here. I add here and then this is essentially the move I caught down now on this move, because obviously the entry is part one, the exit is part two. So I got the great entry. The entry worked out in my favor. Right. Once again, right here. Entry, entry. Now I start scaling out. So I start scaling out here. I try to sell at 10:19. I didn't get the fill I wanted at 10:19. The quick bounce happened. So I ended up accidentally selling one instead of 200. So one went out. We got the second rejection around 10:20. And when we got the rejection at 10:20, this is what gave me confirmation that we might have room down into the low of the day, which was a 393. So right after seeing that, that's where I took the other half or my first half of the position at 278 contracts out at $1.94. So I got in at $1.34. I got out at $1.94 at 10:26. When we go to 10:26, this. This break is where I took half off. Now, essentially, I sold a little bit earlier, right, if you want to say it, because I could have caught a little bit more move down. But typically when I get a big candle breakdown, especially for options, that option is getting a lot of liquidity. You put a high ask, that ask will get filled. And I'm. I'm. I have about 500 contracts, right? So because I have 500 contracts, I'm also thinking I need to be in and out and get the best fill possible and lock in profits. So essentially, I sell half. A little bit more than half. 278. I try to sell 300 at 294. I mean, 194. Sell that at. Sell 278 contracts. At 194, we start moving. And then finally at 1029, I sell my final position. So this is 1029. See? Another leg down. We get a similar move. I sold. The reason I sold it was because when I looked at my account, I'm like, hey, listen, I'm up 40 grand. And I always talk about not to pay attention to your P and L, not to pay attention to what is going on in terms of, you know, your overall P and L, but go off what the chart's telling you. However, at this particular moment, I didn't see this reversal, right? So, you know, some people may say, well, Umar, you sold very close to the bottom. How did you read that? I didn't. I just sold because I was great. I was up a lot on the trade. The trade was Going in my favor. I already took half off here, the other half was on the next leg down. And I was, you know what, maybe we continue selling off, maybe we don't continue selling off. But I will take this 30, 40K day essentially because I'm trying to build momentum in my account for the people that have been following my journey, haven't been trading actively for the past couple of months. Picked up again this week and trying to build that momentum again, right? So building that momentum again, I was like, listen, I would rather take the capital I have now, take the profits I have now and keep building on that, than to go on tilt and go on extreme, an extreme emotional roller coaster. So that's essentially why I sold, maybe got lucky, didn't see this bounce coming, but that was essentially my last bottom right now after that happened, just to walk you through the mindset real quick, done with one trade, right? That was like the only trade, took that one trade, made the money on that one trade. And then after that I did look to possibly take a short position here. Thank God I didn't take it. I was like, maybe we're going to retrace here, we're going to reject and sell. That didn't happen. We went for a high of the day again and a reject. And I was like, you know what, I'm going to call it a day because I was not even anticipating trading with size or trading a big position today at all. But I saw a good setup that I was able to read and it identified as a high probability setup and I executed on it. Take that and walk away, right? Essentially a lot of traders, when they have one good trade on the day, their confidence goes up and they'll go, wow, I had a great trade today. But because I had a great trade, I'm going to keep trading and I'll make another 30 or 40 grand, I'll make another 10 grand or I'll make another four hour trade or another 20, 30% trade. And I tell people that is not the way to go. If you have one trade, good or bad, forget about it, move on to the next trade from a clean slate and if you're unable to do that, call it a day. And I started feeling that with myself here and I was like, okay, I had a great day yesterday, right? I'm, I so far had a great day today and only way I will close off this as a great day is if I stop trading now. If I don't stop trading now, I open up the two possibilities for the day of Essentially giving up more profit after having a good day or essentially making more money. What's more important to me, me being green and taking a 30, 40k day right now at this current stage. And once again, for the people that have been following my journey, haven't been trading the past couple of months, understand that 40k day to build that cushion in my account is far more important than me risking any of that away. Because me having that big day again will give me the cushion to take on a better trade tomorrow when a better opportunity may present. And I'm just sharing that with you guys so you guys understand the mindset of some trades. You guys understand, you know, some days when I take trades, why do I have one trade? Some days, why do I have two trades? Some days, why do I stop after one trade even when the day is good? It has to do with, you know, controlling the mental aspect of my trading what is working, what is not working and just trying to leverage that as much as possible. So with that being said, this was the trade that I took one and done. Great setup, executed it with size once again. Look at the R multiple. Don't look at the big numbers, don't look at the flashy stuff. Look at the 4.46 R. Great trade, risked about 8,700, had a great day. And you know, with that being said, moving on to tomorrow, starting flat, starting brand new, forgetting about today and starting tomorrow with a brand new mindset and not letting this good day impact my confidence in a good way. Tomorrow, right? Tomorrow is just a brand new day. So, yeah. With that being said, I hope you guys found value in this video and thank you for watching everyone.