On Feb. 6, 2025, I had my eyes set on a day trade with $TSLA. During the trade, I sent out alerts of what I was looking for, when I entered, and managed the trade in real time. This is great example of how active trade management – through timely entries, trims, and even re-adding – can help secure profits in a single trading day. Here’s a detailed recap of the trade:
Initial Entry – 10:16 AM
Before I entered into the puts, I sent out an alert at 9:32am stating I was watching $TSLA for a downward move. When I did enter the position, the following alert was sent out:
This was our initial entry into the trade, by using TSLA puts with a February 7, 2025 expiration at the 365 strike. The setup was monitored closely, and we committed to the position as the market began to reveal favorable conditions.
First Partial Trim – 10:19 AM
Just minutes later, at 10:19 AM, the first partial trim was executed:
This early trim allowed us to lock in some gains quickly, reducing our exposure while still keeping a significant portion of the trade active. This move is crucial in day trading, where every minute can impact overall profitability.
Adding to the Position – 10:24 AM
At 10:24 AM, after the initial trim and as the price action confirmed our setup, an additional entry was made:
This add was designed to capitalize on a favorable pullback, lowering our average cost and setting the stage for even larger gains if the market moved in our favor.
Final Trim – 10:32 AM
The day’s active management continued at 10:32 AM, when a final trim was executed:
This final adjustment helped secure additional profits while maintaining the core of our position as runners, ensuring that we captured as much of the move as possible while managing risk effectively.
Final Thoughts
This TSLA day trade underscores the importance of active management in a fast-paced market. From the initial entry to the strategic add and subsequent trims, every step was designed to optimize our position and manage risk. By closely monitoring the trade in real time and making adjustments as conditions evolved, we demonstrated the power of disciplined execution in day trading.
Stay tuned for more real-time trade recaps and actionable ideas. Happy trading!
Disclaimer: Trading involves risks, and past performance is not indicative of future results. Always conduct thorough research and consider seeking advice from qualified financial professionals before making any investment decisions.