Amazon ($AMZN) & Tesla ($TSLA) Trade Recap 2/3
The previous day, Meta Platforms ($FB) Reported earnings and they missed badly. This caused the market to gap down overnight, this sent sent AMZN & TSLA down to start the day. I immediately bought AMZN 2300p contracts at the open because I anticipated that the implied volatility would be expanded drastically after the move down, they were also reporting earnings after the bell as well. One hour after buying these they went up 200% for a gain of $695, I also held one into earnings, the price unfortunately went to $3100, making my final contract likely worthless on Friday 2/4.
After taking the AMZN trade and stepping away for a bit, I was watching TSLA closely because I had a zone marked as interest and also it was coming into a downtrend line I had marked. This provided a few confluences for me to take this trade. As price came into $930 and began to struggle, in both a supply zone and a downtrend line I went short. I was also watching the bookmap at this time, and there was a huge wall of sellers above. The Nasdaq/S&P were also flat on the day with little momentum so I believed the risk reward was in my favor. I was only risking $100 on this trade and made just over $200. I held this contract for almost two hours and was able to make $68% on this. Following my rules and waiting for setups has been helping me a lot, really trying to focus on these setups and strategy.