MSFT Trade Recap 7/6
I had MSFT on my radar before the market open. I noticed that it was holding a key level around $261 in the premarket. It is good to mention that this was also before FOMC minutes, so I knew the price action could be a little funky in the morning before the release. I carried on and as I saw MSFT continue to hold this level I went for a long entry. I got into the 265c @ 2.79. The problem with this trade was my stop loss, I didn’t give myself enough room to breath on this trade or room to average in if it decided to go against me. I still need to work on my patience and stops. Had I placed my stop .30c lower around $1.9 instead of $2.2 I would’ve been able to hold this trade the entire day. Ideally my stop should’ve been placed below the LOD but I was too quick with the stop out and didn’t give it enough room. The trade ended up working and contracts hit a high of about $4.5 which would’ve made this trade a 2:1 RR. Overall it was a good trade just needed to show more patience and trust in my stops and thesis.