Options Trading Journal Video for Short Breakouts on MSFT, TSLA & V

Options Trading $MSFT, $TSLA & $V

See how our Black Box Breakout Indicator was used with options trading to day trade MSFT, TSLA and V short

Options Trading TSLA

I wanted to go through three trades that I actually used options as the trading vehicle using the black box breakout indicator. First Tesla and what I’ve done was I’ve added the comparison symbol here at the bottom and I pasted it in the actual option code. This is a plot of the option that I traded. This was for all three of the trades what I ended up doing is picking an option that was either at the money or one out of the money. but all very close to where the price signal was going to be traded. And that’s generally what I’m going to do. It’s also an option that expires this week. You see in the code ELEVEN SIXTEEN that’s eleven sixteen is Friday.

So I’ve traded this week’s Friday expiration options and I’m generally going to do that for day trading options. In Any event, you can see that this particular trade near the open had a signal at 344.64 roughly. I looked at a close, close to that price when the signal painted on this bar and this bar closed. I looked at an option that was close to the trigger price and in this case I took a 342.50 put for short trade.

On these pretty good trend days with a lot of room in an average true range for one day, you could have doubled your money in this particular option in about 40 minutes or so.

Options Trading V & MSFT

The next options trading was visa. Got a short signal on our black box breakout indicator as the market was moving down. I had room still left a couple of dollars in the average free range. I got in right around dollar 30 and the high again where we ended up exhausting. You start to see some of these consolidation candles down here ended up at two thirty three of the high. So that was about a dollar, almost double. The last one was Microsoft we got a signal and the entry was roughly around dollar fifty three dollar 54.

So basically three good signals with a lot of room left in the day from where the trade triggers painted to where we could have potentially gone. Fortunate we had a trend day today which drove us down to most of the stocks finding one average true range move. Therefore getting roughly doubles in three option trades and a pretty good trading day. So that’s the options for the trade.

One other thing I want to talk about here really quick

Obviously we’re in a correction period in the market. When this is happening you’re going to get wild moves up wild moves down. One of the things that I’ve been looking at doing is to change the time-frame in the multiple time-frame indicator. For the dark cloud to be a much tighter range instead of on a five minute chart looking all the way out to a day. I’m setting the bottom row to two hours and one hour 30 minutes 15 minutes and 10 minutes. I really get to a tight range and I’m really looking to trade intra-day trading within the day.

Using these kind of signals, you can see the alignment when four of the top rows painted together this turns into a square. Therefore indicating the top four rows are in alignment and they’re all below their clouds. I’ve got the same thing for the futures for ES and NQ. Again I’ve changed the two hours our 30 minute, while we’re in this correction period. I want to look at much shorter time breaks of these clouds on these other time frames. You can see that we’ve had multiple alignment of time frames these colors show a pullback against the trend. This is bearish for the day and each one of these and this one in particular was a pretty good short you would have actually gotten most if not all of the moved for today.