While we are posting position entries, updates and exits in the TTP Position chat room and also have a continuous record in our Positions and Setups document, it should be useful to see how Ron was finding his way into the trade, got deeper into it, took major profits, and then is still holding a runner which is “completely paid for.” Ideal scenario, in fact.
Let’s break down the stages. We ware going to use a mix of our records and Ron’s original message from the live trading room, where he is chatting with TTP members all day, every day.
$AMZN trade – active
Position Type: OptionStrike/Expo: 3380C, 6/25/2021
Entry – Stage 1
When $AMZN was showing signs of a move on June 8th, Ron bought a debit spread, not only to reduce cost but to be better protected against a pull.
@ronchero 2:14 PM: taking some AMZN 6/25 3260c's. feelers and Ima spread them to reduce cost. If we get a break above the most recent high at 3310 I will consider straight calls and look to get heavy
2:17 PM: It is just below the 50* and all the bag holders form the highs are getting even here. If they clear them out this thing is gonna pop. If not it will fade again
btw If I am right I can flip this 3300 on its head and use it as a directional morph and that is where I will get heavy I expect fkry
* Ron is referring the 50-day Simple Moving Average. Technical analysis is of course part of the Trading the Post course material.
Getting Heavy – Stage 2
On June 10th, $AMZN ripped off of the 50 SMA, going from about 3380 to 3420 in the first 30 minutes off the open.
These are the chat messages from Ron that morning, live from the room:
Im lookin at AMZN again here this am
i grabbed AMZN 3280c's off the bell
AMZN 3280c's 20.13 avg - 40.24 avg on the way out. Not bad for 11min of work
Still has lots of rom AMZN
Ron recalls his jumping on long calls with confirmation in the tape in this clip from the weekly members-only webinar, see the video, in particular around the 3:30 mark. Also see the screenshot of the 5 min chart from that day below.
More Scalps, Taking Profits and Letting Winners Run – Stage 3
On Friday, June 11th, Ron continued scalping moves:
AMZN 3360c's I scalped 11.53avg - 13.05
On Monday, June 14th:
I started buying next week AMZN 3380c's
Then, on Tuesday, June 15th:
out AMZN next week 3380c's avg 38.9 - 50.7
Friday, June 18th:
ok I have an AMZN feeler next week 3500c from 36
Im still holding my AMZN. Will see if there is hype tomorrow. If not I'll close them out with a nice profit
Tuesday, June 22nd:
Looks like you guys are doin good here today. update on my AMZN trade. I have closed my 3380's I bought them at 43. BUT, with all the scalping I did around them my cost is around 5. Avg on the exit was 138ish. So I pocket 133 and bought two weeks out 3520c's for 58. So even if those go to zero I am +75avg on the trade
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