This morning, I identified $AMZN as a potential opportunity and initiated a position in the 25OCT24 190C options contract. At 10:16 AM, I announced that I was watching the $AMZN 190C contract closely. At 10:24 AM, I announced a starter position, buying at $2.16. This cautious entry gave me the flexibility to manage and adjust as the trade unfolded.
Shortly after, at 10:25 AM, I provided my strategy with a target of scaling out at key levels: 190.74, 191.83, and 194.14, while setting a stop around 189. This strategy allowed me to prepare for both profit-taking and risk management.
As the trade continued, $AMZN dipped slightly, and at 10:50 AM, I added to my position, buying more contracts at $1.86. This averaged down my cost basis and put me in a better position to capitalize on the upside movement that followed.
In the afternoon, as $AMZN approached my targets, I began trimming the position to lock in gains. At 1:37 PM, I sold a portion of the contracts at $2.15, followed by trims at $2.22 and $2.30 over the next few minutes. This allowed me to secure early profits while still keeping a significant portion of the trade in play for additional upside.
As the stock continued to perform well, I trimmed again at $2.46 at 1:52 PM, holding onto only the runners. Finally, at 2:02 PM, I trimmed the remaining runners at $2.82, closing out the trade with a solid profit.
This systematic approach of adding, trimming, and holding runners helped manage risk effectively while maximizing the reward potential. By scaling out gradually, I was able to secure consistent profits and ensure I captured the best of the move.
Disclosure: All trades carry risk, and past performance does not guarantee future results. This is not financial advice; please manage your trades based on your own risk tolerance and strategy.