Before the trading week kicks off, I share my elite focus with the team, highlighting specific stocks to watch. One of our focus stocks was $CAT, with calls above $257.64 and puts below $252.74 as our triggers.
On Monday, July 17, 2023, some of the room had eyes on $CAT because it was triggering our call target price. I preach risk management and instead of blindly jumping into calls, we waited for confirmation to make sure this was a solid trade idea.
At 12:44 pm EST, an alert was posted, signaling the purchase of $CAT $260 calls expiring on July 21, 2023, at an average price of $1.60.
$CAT moved in our direction over the next hour and recognizing the opportunity to secure some gains, I took a partial sell-off at 1:22 pm, selling a portion of my position for $1.80. There was an individual in the group that made the trade their own and was up 76% on $CAT $260 calls.
At 1:28 pm, I shared with the group that “$CAT looks great so far, making a nice push above the prior week’s high. Today’s primary focus is a close above $257.64.”
However, around 1:50 pm, $CAT began to reverse, and since I was considering it as a potential swing trade, I gave the trade idea some room to breathe. Nevertheless, it’s important to remember that each trader defines their own risk, and monitoring the VWAP (Volume-Weighted Average Price) can be used as a stop loss.
As of 2pm EST, I am still in the trade, but I wanted to say congratulations to those in the room who managed their trades successfully! The ever-changing nature of the market reminds us to remain adaptable and vigilant in our trading endeavors.
If you want more information about the room and how we operate, please head over to thetawarriorpro.com/elite/ for more info.
Disclaimer: The information provided in this blog post is for educational and informational purposes only. Trading involves risks, and past performance is not indicative of future results. Always consult with a qualified financial advisor before making any investment decisions.