WYNN TRADE

On March 2 (today) I bought PUT contracts of WYNN off the 5 and 55 charts. Yesterday I noted that WYNN had broken a strong resistance line I had on my daily chart. So I was expecting an up but not this strong.

I entered my trade using the 5 chart after the candle close at 9:55 and within a minute or so of the following candle open off its high and as the pull back began more strongly on the 55. I looked for the wick to increase off the candle open on the 55 which is the signal that the stock is pulling back.

I watched my options and they started to roll over. I have two separate computers one is for buying options the other is nothing but charts with 2… 22" screens. I purchased 4… 135 PUT contracts @ 6.85 = 2754.95.

I sold on the red candle on the 5 chart at about 10:05…10:06 for 8.40 =$619.86 or a 22% gain.

This trade usually isn’t that fast for me but this time it was extremely fast. Usually I have at least 20 to 25 minutes before I am out of this type of trade or time to get some coffee. This time I could just feel the rhythm and that this trade was not a "go get some coffee" type of trade. Man those market makers must be sitting right on their buttons. So along with the 5 chart I also watched the 1 minute chart for a very fast turn-around.

Now I will go get my coffee.

Wow, that is an impressive 10-minute trade! Great recap. I personally can only watch the market enough to trade off daily and sometimes the hourly chart, so it is very interesting to me to hear about trades using 5 minute and 1 minute charts.

This is a trade taught by Gary Williams. I practiced this type of trade for nearly 6 - 7 years before I ever traded it with real money. It is a scary trade because you are playing the opposite of what the stock is doing. It can only be traded on small charts.

Again let me assure you not all my trades go this well. I have a loser about every 6th or 7th trade. However if it doesn't work for me within 21 to 55 minutes I am outta there...or I don't go past a 10% loss. Even at that it is really too much. I do not buy spreads that exceed a 20 cents and really like it when I can catch them at a nickel. Those times have been very rare. Sometimes my gain is only $20.00 on some trades. I have gotten as high as 180% using Gary Williams information. I really appreciate his teaching and knowledge.

Right now during this time of year or this trading zone I have always done very well. The summer zone really stinks for me but I keep plugging away at it.

I also used larger charts like you are using. Right now though from all I have seen the smaller charts are the ones working. I trade on the average 2 times a week. I have yet to purchase any stocks and sell the calls against them. I am practicing those types of trades but to be totally honest I really stink at buying stocks. I haven't been that successful at that yet.



Edited 1 time(s). Last edit at 03/05/2012 02:35PM by Darcy.