Keep it up VIX. I'm writing this 5 minutes before the market closes for the day/week. (at least the SPX (S&P 500) that I trade, the futures market trades 6 days a week) It will be exciting to see just how much the VIX (fear index) will rise by the time it closes. People seem to maybe, possibly be having more confidence in the market, which means smoother sailing for me, in my trading.
First off, let me show u price breaking out of the channel it's been in for the past days..
Yay! I enjoy the predictability of channel trading, but it's very good to see it breakout, and then get to trade that.
Price actually broke out overnight, but retraced and dipped back down just in time for me to ride the 2nd move up..
*that solid red line is the top of the channel that I drew a couple days ago. Notice how price broke up and out, then moved back down after it turned, but just to touch that line.. resistance (such as the roof of a channel) will usually become support (like the floor) for price moves AFTER it does break.
translation: it's a good time to get in on the move!
I got in at what seems to be my preferred delta for recent trades..
Traders are more cautious (or is it gun shy?) right now, and that showed up as a partial fill of just 2 out of 3 contracts that I wanted, but the other one came just a few minutes later.
6 minutes later, my trade was in a good position.. I like to see a delta of 10 or less.. meaning the trade has a 10% chance (or less) of ever touching my strike price. (flip that and it means a 90+% probability of profit!)
see how my stop falls just below the 'floor' (resistance that was broken? not that I planned that, it just happens..)
I took this time of trade limbo, to check on the news for next week. I don't usually do so, but 
Looks like no trading on wednesday for me..
see how the 100ema (dark red moving line) is now ABOVE the 'floor' , so even better for my trade's success.
at 8:26am the trade got a nice shot of time decay at work, and my target and stop lines dropped significantly.
8:41 and the chart showed this..
the bears were taking control, but the bulls were still fighting, price was well above my strike price and stop.
8:54.. minutes away from the start of power hour.. my trade was still ok, but I had to decide if I wanted to close it early, or try for my target/expiration.
the bulls were holding price at bay, but power hour is crazy sometimes.. a huge bear could come in and tank the market..
I was thinking to myself whether it was worth the risk.. my option COULD fetch me $150 if it expired fully, BUT if a big bear or two or ten came in at anytime during power hour, I could lose it all..
Then I thought, on wednesday I lost -$140. Then on thursday, I won $110. That makes for -$30 for the week so far.. so I concluded that my trade had already won the week for me (if closed now) and
😊😉🤙 Have a great weekend all!
