Weekly Outlook + Daily Plan 5/30/23
On the road this week for Memorial Day
Good morning traders!
Hope everyone had a great Memorial Day and I would like to thank all active and retired military. America and it’s allies wouldn’t have the freedom if it wasn’t for all of them/you. Much love!
Before moving on I do want to point out the updates inside the telegram. I understand most want entry/ exit alerts for the Daily Plan but I am not understanding why people can’t set alerts for the stocks at the levels provided. Last week the levels held every single session with no need for any updates. With having bad connection this week it will be tough to send out updates. I personally will not be trading intraday other than swings as I will be with family all week and will not risk connection dropping while in a day trade, major no no. Next trip I will have Starlink so connection will not be a problem and there will be no gamble with “5G Wifi”. This will allow more time to expand on the Daily plan but just know it takes 3 minutes to load a single chart so I am working with what I got at the moment! (This goes for videos as well as the upload time will be minimum 4-6 hours) For levels, no matter the stock in the daily plan I will be focused on those levels. The only time I have to veer away from them is if I missed entry or was caught offsides. Unless the session is a trend day, I do not look to join the momentum as it more than likely will fizzle out. Just know some sessions you will miss a setup and not get another until the next day. On a risk reward basis the levels in the Daily Plan offer the highest Risk to Reward ratio.
What if you want to trade options rather than futures?
Intraday I use 0DTE when expecting volatility (avoid 0DTE during balance/ chop) while using the closest strikes to current price. If you ever have to buy a different contracts because it is too expensive then you shouldn’t be touching that stock to begin with.
What if you want to use less risk when I can’t be as active for updates?
Use the Value areas for S&P500 for swings ot the weekly thesis for 3 week out contracts using the same strikes as you would on Intraday. The strikes used will never change, I do not like buying far out options even when I expect a large move. Using the first or second contracts Out of The Money (OTM) so if stock price is at 100 and the strikes move in 5 dollar increments I will use the 105 or 110 contracts. Higher volatility expected? I favor the 110s but remember always think in terms of time. If price stays still neither moving up or down your options will decay and go worthless so pay attention to how much time remains on your contracts.
Use this chart as a reference on how decay can impact option contracts overtime.
Time to jump into the shortened week as follows:
Weekly Recap
Earnings
Events
Stock Weekly Levels
S&P500 Value Areas
Daily Plan
Previous Week Recap
AVGO crosses 830 this morning from 685!
AI is now up +100% on commons crossing 36 this morning!
NVDA contracts were up well over +1,000% with some crossing 2,000%!
Plenty more last week and I advise you to go back and read the plans sent out last week. Tremendous levels day in and day out with this week not lacking in expectations of volatility once again.
Back to the plan…