Not every trade goes in our favor—and that’s okay. What matters most is how we manage risk when the market moves against us. On this $AMD put trade, the setup looked solid, the plan was clear, but the price action didn’t cooperate. In this post, we’ll break down the trade step-by-step and focus on the importance of honoring stops, especially in today’s volatile environment.
The Setup
At 10:17 AM, I alerted the TW Elite community:
📢 “Watching $AMD 88P”
📈 Buy to Open (BTO) 17APR25 88P at $1.31 – Starter position initiated.
The idea was simple: $AMD was showing weakness, and I was looking to position for a potential move lower with 88 puts.
The Trade Plan
Two minutes later, I outlined the full plan:
- Stop: 89.68
- Add: VWAP
- Targets: 88.00 and 87.61
This gave us a structured framework for execution, with clear levels for both managing risk and taking profit.
At 10:19 AM, I added to the position at a better price:
📉 $AMD 88P at $1.12
The Exit: Honoring the Stop
Unfortunately, the setup didn’t materialize. Instead of breaking lower, $AMD reversed and moved toward our stop. At 10:28 AM, I called the exit:
📉 Stopped out at $0.94
While no one enjoys taking a loss, the decision to stick to the plan and exit when the stop hit protected us from further downside. It’s a reminder that trading is not about being right—it’s about being disciplined.
Why This Matters
In a volatile market environment, things can shift quickly. Headline risk, unpredictable reactions to economic data, and algorithmic flows can cause sharp intraday reversals—even in the cleanest setups.
This trade was a great example of why having a stop and respecting it is non-negotiable:
✅ It protects capital.
✅ It keeps emotions in check.
✅ It gives us the opportunity to live to trade another setup.
Getting stopped out doesn’t mean the trade was wrong—it just means the timing wasn’t right. And in trading, preserving your capital is what gives you the ability to take the next high-quality trade when it is right.
Final Thoughts
Losses are part of the game. What separates successful traders from the rest is how they handle them. On this $AMD trade, we followed the plan, executed with discipline, and limited the downside.
Sometimes the best trade is knowing when to get out.
On to the next.