Welcome back everyone!
Today was a rollercoaster day, vividly represented by the Emini and Nasdaq indices. Price rallied through the night, surging directly above the long levels, which fueled a strong move up to the long targets. Both indices met their targets before experiencing a sharp sell-off, bringing the price back to the long level and setting the low of the day (LOD). For now, I will cover the SPX contracts, followed by an analysis of TSLA. Note that two swings were covered today as well, but they are still active, so I will recap them once they are closed.
The first contract attempted to go long after the Emini reached its high. My thesis was simple: the price was trending upward with strong support near the high. A low volume node (LVN) was just below my entry point, and the price experienced a short-lived bounce before breaking support and heading lower. Once this was confirmed, the structure shifted, offering two strong short setups via put options on the SPX. The first setup saw a strong retrace after initiation but later went deep in-the-money (ITM), spiking contracts over 300%. During this move, when the Emini bounced back up to the 5690s, I called out another short, and the price dropped to my 5667 target, which was just above the LOD. This resulted in a net 600% return on those puts, bringing the combined return for both puts to 900% for the session.
On the other hand, TSLA experienced a strong spike at the open after calling the call contracts at the low. These shot up over 100% swiftly but failed to continue higher. All of these updates will be provided below, in order:
See you all in chat tomorrow!