ZOOMing in

Traded ZM today (7/26/19) Got in @ 9:48 bought 5/ $99 contracts @ $5.10 out @ 10:58 sold @ $7.20.

Okay so the trade actually presented itself earlier on my 8 chart. But I could see the back-up coming on the 1 and 3 which began to show itself in the 5. So I waited for confirmation. When I first looked at the option it was a .50 spread. Since I could see the back-up coming I knew the spread in the option would decrease. That was another reason why I waited. When the spread closed to only .20 and since the charts were showing a turn around and the option on the ask on the call I wanted came down and the bid remained the same I jumped. The 1,3,5, and 8 and option said GO! and I went. Yes I watch the charts AND the option especially when I trade most of the time early in the day.

I don't watch one thing. I watch several things. I watch my entry chart which is the 8 since I am an in today out today trader. The 8 chart reflects what is going on in my 1,3,5 that's why I watch those. It helps me in finding the right $'s for my options. But I also look at my 21, 34, and 55 to see if I have room to move in the direction I believe the trade will go. I believed with what I saw that ZM was going up. There was room on the Stoch RSI, MACD and Directional Movement on the 21, 34, and 55 for room to move up. My ADX on the chart, which I have not faded into the background but made it a black line as heavy as GW's lines, was moving up. +DI (red) up. Money Flow on the 1,3,5,8,and 13 was going up. No doubt at all about this trade. (red line is +DI or up and follows the candles)

To exit sometimes I watch for the stock to look like it is changing. In other words, I look to see if the indicators are telling me that the stock is slowing or getting ready to turn down. When I see my money flow reaching into the 90's and my Stoch RSI getting into the 100 I begin to look for an exit. Sometimes I take what I am offered and sometimes I place my bid .10 higher if I think the stock will move more in the direction I want and there is room for that movement. Yes sometimes I leave $'s on the table but I have my money and then I can move on.

Hello Darcy! Glad to see you check in on the forum I havent been checking either but I got on today for the first time in weeks and there you are haha. What a coincidence, or is it fate All jokes aside though, I got an alert on WMT around 10:10 eastern time (or 40 minutes into market open). I have developed a “continuation pattern” setup so we’ll see how it goes, looking good so far. Would love your input if you can check the WMT chart... Love the ZM trade also! Wonderful stuff. Also thank you for getting back to my private message.

Maybe you had a 6th sense? Looked at WMT today 7/29/19 and I hope if you did a call you left that trade by 10:58 7/26. I wouldn't trade it on a long chart either for a PUT and for a CALL >>>at least not until it gets above the 20 moving average on the 233 and daily. Looks like sideways is how WMT is going. Sideways isn't a good profit maker. My trade today??? ROKU

Thank you Darcy, do you always wait for a pull back? In my experience I've basically averaged the same outcome when waiting for a pull back or not waiting for one.

thanks Darcy for sharing this !!!!

It all depends on the chart. When I first started I watched the option more than the chart. Now I mark on my 8 chart where I got in and then use a different color to where I would get out if the trade goes against me. There simply was too many things going in the right direction for ZM to consider leaving. There is nothing ever, ever wrong of getting out when you see a profit even if you clear $20.00 after fees. I have always said if I saw $20 on the ground I'd pick it up. It's $20.00! $20 a day @ 5 days a week puts an extra $100.00 in your pocket. Eventually you'll start staying in for $30, $50 $100 and then even more. You are making a brick even if you are making that brick 20% at a time!

I exited my WMT calls on 7/26 at around 11:30 when it looked like the momentum stalled out, I try to stay in the trades longer like your S/O bc I like getting the most meat from the move haha But nope no sixth sense, on the 55, 34, and 21 all the signals pointed up with the price above the SMAs i use. Also on my chart with extended hours I had a MACD cross up along with a triangle break. All signs pointing up with a break gave me all the more reason to trade this long with confidence. Good trade today was Chegg (CHGG) but I have not traded it today, just saw it after the fact because a friend of mine did trade it and he was happy for the day.

No I don't always wait for a pull back but sometimes I can see one coming, sometimes I know the spread on the option is closer to my liking and sometimes I simply miss the trade.

Yep I said I would have exited about 10:58 using that red candle. That is off an 8 chart. The money flow at the time the red candle at 10:58 was done was telling me the money was leaving the trade. Note the stock on the close when I said I would have left was 113.04 and @ your approx exit it was 113.06. The difference in the option may be reflected in the candles. You might see that pull back better in a 5 chart. I don't remember how to display my chart of the 8 here but I know when I got into that before I began to be flooded with too many questions. And yes I watch that money flow even though it does ebb and tide. It is hard to explain exactly what I do but I enter on my 8 almost always and there are times I use the 21, 34 and 55 to see if I have room to move in the direction I see the 8 moving. If I do I watch the 3 and 5 to pin my trade as close as I can. Sometimes I can see a pull back coming off these 2 charts which keeps me from entering on my 8 (PDQ) and saves me .20 - .40 in my option and the spread is closer. I generally do not trade if the spread is above .40. It is just too much to make up because of how I trade.