Let’s get right into the charts and show you guys a little bit about what I am seeing and what I’m looking at. Yeah, NVAX, what a crazy run. NVAX would be good for some puts, I think, pretty extended on the day by a lot, even on the weekly. I remember this trade last Friday. What a good entry right here. Go out a month, get the 191 strike price. It’s amazing.
If you’re in the group, and you’re a member – not the weekly, but actually the daily is just as nice. Guys, go out and look for stocks that are near the 20 RSI, or even on the daily time frame on the stochastic 14 that are dipping down here [02:14]. Can you imagine getting this on this dip, go out a month. I mean, when you buy pretty much any name with close to the stochastic 20, it’s a little different than the RSI.
The RSI, when it’s at the 20, it means we’re oversold. People, they pushed it up to here. Then they sold it off, dead cat bounce. Then more sellage all the way down. You can see both right here on the RSI, on the daily, was at 9.66. Also, the stochastic on the daily was 7.59. The RSI was 30. Then what did we do? We get this nice bounce. It took about from September of last year, 9/8 9, 10, 11, 12. Wait, that was 11, 14, 15, 16. What was that, two weeks from the eighth? No, just to the 16th. I mean, a week, but you could have gone two weeks out on the expiration date.
Same thing here [04:21]. This was not really good. I mean, you could have got here [04:27], and that was in November at the lows, and gone out one month on expiration to December 19th. What was that, December 30th, the end of December. Here [04:45] was the 27th, nice push, and then again this year in the 5th, the 5th of January. Go out a month to the end of January. We would have missed it. Yeah, we would have just missed it and then February.
I’m trying to teach you guys a little something here. This is macro, big picture stuff. The wind is at your back, as the expression goes. You ride it up for a month, or go out two weeks, one month. The shorter you go out in time frame, the riskier it is with [05:45], but the more return you can get. If you bought here [05:50], and you went out two weeks, this was maybe a 500% return. If you bought here [05:56], and you went out a month or two, this was maybe a 100% return, or a 50% return. Just to put things into perspective, it’s like a risk reward in terms of expiration dates.
Look at this one. This was last year in April and May, right at May all the way to the first week of August. That’s three months of just an uptrend. This move right here [06:42], we’re talking thousands of percent return on a three-month expiration. You buy here [06:56], and you go out three months, October, November, December, January. I would have missed it.
This [07:07] is a little harder to time. What I like to do is just go out two weeks on any dip like here [07:14]. This is 1/5. You want to go out a month, so you get the 2/5, 2/4, 2/3. The same thing with NVDA. You have to have an idea of the big picture and then also the small picture. NVDA is due for a big breakout, I feel. We’ve traded NVDA so many times. Look, it was down here. I said, do you know what, let’s get the 540 calls.
Then you go to the five-day. I’m looking at the ten minute time frame. We bought right here [07:53] on Monday. I think we bought maybe here [08:01]. Then we went a little bit red, and then back to break even, red again. Then I think up here [08:10] it was break even. Then it was green.
On an intraday pattern, on an intraday 10-minute timeframe, you would have wanted to dip your toes in here with the 540 strike price. You could have sold here for an intraday trade. You’re in and you’re out. It’s called intraday. This is a one day trade. We had the 540 strike price. I knew on the macro big picture we’re just now getting this bounce here [08:44]. This white line needs to get all the way back to the top. Then you can keep an eye on RSI.
Look right here [08:53]. Here [08:54] to here [08:55] equals here [08:56] to here [08:57]. You can hold these trades as swings. The thing with swing trades is it’s going to be interesting. You’re going to be green and then red, and then really green, and then a little green. Now, it’s going to be a lot of green and maybe a little green. We’re right here [09:20] at this resistance. If we can get above that, we’ll go back to 550 and then to 560.
This was a nice day right here [09:41], wow. What a day to trade NVDA. That was just an intraday. What if that was a Friday, jackpot day? We bought here [09:53]. I should have just swung this trade and stayed in it. Also, E*TRADE was down Monday. I remember, Monday, E*TRADE was down. I couldn’t get into this one [10:02] or my MRNA puts that I really wanted to get into. Just perfect.
This was a lesson today. I hope you learned something. I wanted to mix it up and do a little bit different style of my usual this is what I’m looking at today. I go through the charts. I draw support resistance, technicals.
I took a GME put trade that a member posted on Members Trading Channel. Let me go look at AMC. I’m just not interested in it. There’s a lot of opportunities out there that I feel like I have an edge on. I don’t feel like I have an edge on AMC. Feel free to take it. I’m not trading the hot stocks. I got burnt. I was in AMC, was doing really good, then they halted the trading on it. I got really hurt on my BB calls, my EXPR calls, and my AMC calls.
If the brokerages can come in and just pause people from buying, or selling, or trading a stock, it’s not right. It’s wrong. It’s illegal. Hopefully, there’s some class action lawsuits against these brokerage firms or whoever. It’s illegal to cheat the system if you’re a hedge fund. It’s not okay if you’re a bunch of retail traders. I won’t get into the politics of it. The point is I’m just staying away from the hot stocks right now, the ones that have a chance of getting halted again. I focus on stocks that I feel like I have an edge with.
I’ll leave you guys with this [12:29] one because the market’s about to open in a few minutes. BABA looks good, intraday. I think it just got an upgrade to a buy. What a nice gap up, 4% on BABA. We are a little oversold on the ten-minute time frame. I’m going to wait for a good dip buy. See [13:06] how this can be a little confusing on the ten-minute time frame on the day. This [13:13] is after hours. This [13:15] is pre-market. You had a nice 20 RSI on the ten-minute. Good entry point right here [13:23]. Also, stochastic’s down here [13:25] below the 20. It went all the way down to three.
You get in, and you’re like, yeah, I’m green. Then you’re like, oh no, I’m back to break even or even red. This [13:41] would have indicated an exit. This [13:44] would have indicated a reentry. You never know how steep or how short these moves are because the stochastic doesn’t measure the amount of the move. It just measures the trend, I guess, is how it’s defined. If you would have gone out till Friday’s expiration and bought back here at the end of the day.
This [14:10] is the best entry on the ten-minute time frame. Then boom, nice gap up, but we could have gapped down. That’s the danger of holding options overnight with weekly expirations. This was a little confusing if you bought here [14:25]. I wouldn’t have bought here [14:27] because it didn’t come down like it typically does in a wave-like pattern. Then it just went up all day.
My indicators and the five and ten-minute time frame moving averages, it’s not bulletproof. It’s not perfect. There is no perfect formula. I just think that using these [14:51] two indicators on the ten-minute and five-minute time frame helps me with my entries and exits. I also look at the macro picture to identify where we’re going in a stock.
If you’re looking at a stock on the daily time frame, and it’s kissing the 50-day moving average on the daily, every time it kisses it, you get a bounce. Chop, pop, kisses it, what do we do, back up, and then we broke down, major leagues broke down. Right here [15:35] on the daily time frame, RSI on the 20 would have been a good entry. You go out a month, 12, or even two months. You would have sold at some point, especially when it got up here [15:48] to 270.
Those are the two different ways of trading. Swing trading, you go out a month. If it’s January, get the end of February. A month or two months, I like to just do a month. I don’t have a lot of patience to hold something for that long. Here’s [16:17] another example, 12/24 to 1/20. This was a month. If it’s the end of December, just get the end of January. Go out a month.
Let’s say that this was the beginning of December, I would get the end of January. This is a good indicator right here [16:53] as an exit point on the daily time frame. You’ve got these macro big picture stuff, and then you have the more intraday day trade. Five-minute’s a little too much noise. Ten-minute’s a little less static. On an intraday, this is quick bounce trade.
That’s all I’ve got. Market opens in two minutes. I’ll see you soon. God bless. Let’s have a great day trading. See you in the group and on the charts.
