Hi again, Dustin. Did you approach trading stocks in the same way, while obviously honoring your original stop loss on the remaining shares you had?
Hoping Dustin will respond to this..since you are trading short term options, do you let these profitable trades run till expiration of the option? Is the option’s lifespan a natural time stop?
I do hope Dusting is ok. I can answer your question though since I asked this very same thing. Since he trades the 0 DTE options mostly, there isn't much time to mess around. If he sees he is completely wrong, he will be happy take 5 cents or 10 cents or whatever he can get because those add up over time he said. Its not so much just buying a lottery ticket and walking away. He continues to manage the trade as the day goes on. And I think we can clearly see this as well. Rarely does the stock or index close on the very high or low. There will usually be a min or max somewhere in there (maybe 30 mins before close or 1 hour), and if you don't get out, you're losing money on a profitable trade. So I do think he tries to get out for a profit if he thinks that's all its gonna give, and close out the option for whatever residual value it has left if he doesn't think it will get any better.
It depends on the setup, but Noah above is correct. The one caveat is if I'm in NDX or SPX which cash settle...I will leave some of those for the closing print.
Hey guys, sorry I've been mia since trading has slowed down so much. We've gone from a great trading market to nearly untradeable (for this style). I spend a lot of my time now looking at other ideas for slower markets.
Good to see ya back, man. Your thread linked below is a favorite. What would you say belongs in a solid trading plan Dustin? https://elitetrader.com/et/threads/anatomy-of-a-fun-2-day-trade-amc-60k.359907/
Hey all, it's been a while because this style of trading doesn't work in the market we've had lately. I've really tightened up over the past months, trying to play safe...but always on the lookout for the big ramp days like we had Thursday. It finally hit, and I played it well for about $300k. I think it's fun for you guys to see my thinking as the day progressed so I grabbed my Slack chat. I edited out the other members for privacy. It's choppy without context but you get the idea. As you will see I ended up being wrong with the overnight yolos and I gave back around $60k on Friday. The r:r was very good on the overnights so I'm ok with that. All flat going into this week. The perfect storm is weak market going into Th/Fri for a big reversal. Bear market rallies are everything. dust247 hard to imagine today being the day with these headwinds <chat members were talking about how today could be the day> 6:13 AM tomorrow would be better for us <because Friday cheapy options> 6:13 AM unless something breaks today dust247 TSLA going for lows 7:03 AM I really want a wash, not this shit dust247 lol not a seller in sight anywhere 7:14 AM MSFT just went green for a sec 7:14 AM we need targets on a 2-day rally dust247 it's unbelievable how bad TSLA is now 7:34 AM dust247 every uptick is met with a downtick right now <I'm referring to ES NQ> 7:56 AM dust247 big tech wants nothing to do with this? 7:56 AM SMH going green 7:57 AM I just went green, you guys should sell everything right now 7:58 AM see <I was joking here> dust247 I booked a little green, going to leave until later <I had massive long positions here and have learned that I need to step away sometimes> 8:10 AM dust247 I had stepped away but saw XXXy's caps <when a certain chat member is swearing in caps I know I need to be trading> 8:25 AM booked my small NDX up there <this "small" NDX trade was worth around $50k> dust247 yeah I had LRCX 8:27 AM still have some 8:29 AM fwiw AMZN shouldn't be red <AMZN and TSLA were big laggards, I love laggards.> dust247 sitting at +140 now, lot's of day left to lose that or make 3x 8:33 AM dust247 im big in AMZN 8:34 AM and big in TSLA dust247 got 10x on LRCX <all out> 8:36 AM selling some more NDX here at 10x 8:37 AM +210 fucking nuts <nice> 8:39 AM dust247 lightened AMZN 8:40 AM sold more NDX< always be taking profits to fund the eod yolos> 8:40 AM dust247 those were 11100 8:41 AM for tomorrow dust247 had 20, down to 5 for overnight 8:42 AM ok now I'm really leaving for a bit, sold a lot there <stepping away is important in these situations> dust247 it's too hard to watch now 8:43 AM dust247 booked around +200 8:43 AM dust247 I want TSLA 230 <big tech barely ended up participating this day> dust247 find your feet AMZN <poking AMZN to do something> 10:32 AM to 117 you go dust247 TLT playing along 10:38 AM dust247 looks like I'll be holding massive AMZN as my overnight 10:40 AM dust247 definitely worth a eod lotto 10:48 AM dust247 sellers in TSLA for the past two hours have sold 2.5m shares 11:15 AM while price held dust247 just bought 1000 118c AMZN... o/n yolo 11:52 AM even if it goes to 115 today those are 10x 11:56 AM dust247 these are the guys that were missing for 5 months <high interest rates are the bane of my existence> 11:58 AM dust247 I need AMZN for the real payoff <1800 calls for 1DTE was significant> 12:11 PM it's slow 12:12 PM 1800 calls in different strikes 12:12 PM but ill hold these overnight if needed 12:13 PM let's get weird market <please> 12:14 PM every downtick is -$20k, this is a little much for me 12:17 PM dust247 today was an exercise in patience for sure 12:27 PM I think I have the right trades on for o/n...minimal risk for max reward 12:28 PM