In today’s webinar we interview community member hooch (h00ch). We walk through a trade that he made on NVDA on the 2 minute chart. Since it gapped massively and it was well outside the Bollinger bands, this is a prime candidate that hooch likes to short. He bought puts near the open of the candle shown and OTM since premium for options is pretty jacked up at market open. This leads to a good discussion about his use of stop losses for trades this early in the day. He sold some into the move lower and closed the last one as the price hit the top Bollinger band.

We move on to the next trade which is on AMZN using the 5 minute chart. Hooch discusses how he moved from trading further dated expirations to trading the nearest expiration, many times on the day of expiration itself. Trading these ‘cheapies’ means he sets his risk at the onset of the trade considering how low cost they are. For this particular trade, he spent more than he usually would but that’s because he would know he’s right or wrong immediately. We see that the chart moves in his favor almost immediately. Since he is monitoring it closely, he does not have a hard stop in place. He sells half his position on the touch of the 50 simple moving average making over 10 dollars (which is worth 1000 dollars) per contract. Since hooch does not keep huge amounts of money in his account and the options were deep in the money, his broker eventually sold his remaining contract for 19.55 which is over a 300% gain.

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