As I had highlighted earlier today, the stock I was focused on for the day was NXPI. Here is what I said :
"So now I'm looking for a clean pause on either the 5 min or the 15 min chart to get long the Dec 18 $12.50 Call Options..."
I got exactly what I was looking for at around 12:15PM (yellow arrow on the chart below) but was not there to take the trade!
There is no open interest in the $12.50 Call Options. However, the $15.00 Calls more than tripled from where they would have been trading at the time. The thing that might have stopped me from buying the $15.00 calls was the bid/ask spread. These calls were trading at $0.05 bid and $0.20 ask. This would have meant a 75% loss to get in and out with the underlying at the same price. A bit risky...lol!
None the less the trade would have worked out nicely and although the $15.00's closed at $0.65, they are now trading at $0.95 bid and $1.75 ask aka. giant profits are going to be made on these calls next week.
Another trade that set up that I considered getting into in the morning was long CCME Dec 18 $16.00 Puts (which have no open interest so the trade would have been the $15.00's) at around 11:30AM (blue arrow below).
The set up was a perfect technical set up. CCME broke yesterdays low's as well as the lows of a bigger picture descending triangle on the daily chart. It then pulled back to the level which held as resistance very cleanly yet I did not take trade. The main reason for this was fear of not being able to get if it moved against me. So I do not mind passing on this trade. Although the trade would have worked well. The Dec 18 $15.00 Puts moved from $0.80 at the time I would have entered to $1.20 at the close for a nice 50% gain. CCME also gave another opportunity to get short in the afternoon but I was not at my screen then.
Though I did miss some nice opportunities to regain my losses from earlier this week I am not altogether dissatisfied. Things could have easily gotten ugly for me and with no day trades left this might have meant disaster. So now I am looking forward to next week with a renewed confidence due to an approach that I see clearly works as opposed to the hit or miss I approach I had with the weeklies.
Good luck and good trading!