Being my hours on Friday favored the later morning hours, I decided to go back to some stock trading like I did on Monday with stockpair.com. I decided to stick with trading only Apple (AAPL), as McDonalds (MCD) wasn’t providing anything favorable to trade set-ups. Also, I opted for their 10-minute expiries today instead of the 30-minuters as I had done on Monday.
I started watching the chart from the opening bell and the markets expectedly began to tumble nearly across the board in large part due to geopolitical strife coming in the form of potential U.S.-led strikes against Syria. As a result, put options seemed like the best bet for the day unless something really good set up along a price support.
The first test came at support 1 (489.72) at 10AM EST. However, price blew completely through that level and came just pennies shy of testing support 2 (487.74) just fifteen minutes later. But fortunately for the sake of finding trade set-ups, price began retracing back up to support 1 and bounced off on the 10:30 candlestick. I got in a put option on the re-touch of 489.72 on the 10:35 candle, basing the trade around the pivot point and the downtrend that was likely to keep going for at least the remainder of the morning. The trade closed out exactly ten minutes later, winning by 1.30.
After this trade, price closed below support 2 on the 10:50 candle although it did retrace a bit back above afterwards. After the market closed below support 2 more significantly on the 11:15 candle, the level started acting more as a resistance level, holding on the 11:20 candle, before wicking and forming a doji on the 11:25. With the downtrend, the support 2 pivot point, and price action all favoring a move to the downside, I entered a put option on the touch of support 2 on the 11:30 candle. I would say this was probably my favorite set-up all week regardless if it ultimately won or not. Set-ups like these are going to win over 80% of the time in my experience. This trade won by 0.71.
I continued to watch AAPL until 12PM EST when price was around the 486-487 level. In general, most of the daily action on a stock occurs before the lunch hour when trading volume begins tapering off. That said, you can still regularly find good set-ups throughout the day before the market closes. If you look at the chart below, you can see how well the 488.40 and 486.66 price levels held from just after 12:00PM to market close at 4:00PM. A ton of set-ups repeatedly occurred at those prices in the afternoon hours. Put options at the 488.40 resistance in the afternoon alone could have yielded a ton of winning trades. Unfortunately, I just never really have the time to dedicate to afternoon U.S. equities trading hours, or even morning hours for that matter. But I do really like the price action associated with equities trading and I would take binaries more frequently on these if I had the hours available to me.