Market analysis and swing trading ideas 8-9 May 2023

Is this where the next drop starts?

Jukka from Option Investors Club shares his daily run-through of the US markets and sectors, with a focus on potential shorting opportunities. He also demonstrates how to use his trend reversal trading strategies to identify the best entry points and make profitable trades. Whether you're an experienced trader or just starting out, you won't want to miss these two informative and entertaining videos.

Why two?

I got lazy on Monday and did not write a blog post, so I'll just slump the 2 together here for your enjoyment.

And anyway: Tuesday is Monday's continuation. Watch these in order, Tuesday's video builds on Monday's video. A bit like Tuesday tends to come after Monday, most of the time, based on our analysis of historical data. :)

Monday:

Tuesday:

Key content

No timestamps today. :)

On Monday, I use 2d charts instead of the normal daily. Why? Watch the video to learn!

On Tuesday, I show why I added to XLF short (based on the hourly chart + my custom multi-timeframe moving averages indicator - if you want it, shoot us an email: support at optioninvestors.club).

So grab a cup of coffee and watch these videos right now! :)

If you want, please join us and take your trading to the next level with the Reversal Catcher System.

Trial available at https://optioninvestors.club/rcs-trial

Open trades we are tracking during these videos

AAPL trade (opened on 28 April 2023, closed on May 9th)

• Options: bought $185 call, sold $195 call (August 18th expiration for both) to open a "bull call", or "call debit spread"

• Price paid: 2.20

• Size: 1

• Max capital risk: $220

• Max profit potential: $780

• Exit for $243, so $23 profit (around +10%)

• Reason for exit: markets sliding + bearish view over all = closing longs that slide with the markets.

XLE trade (opened on 28 April 2023)

• Options: sold 75 put, sold 95 call bought $185 call, sold $195 call (July 21st expiration for both) to open a short strangle

• Credit received: 2.07

• Size: 1

• Max capital risk: unlimited

• Buying power used: $848

• Max profit potential: $207

• Statistical probability of profit if held until expiration: 70%

• Statistical probability to get +50% between opening and expiration: 88%

XLF trade (opened on 3 May 2023, added 8 May 2023)

Opening the trade

• Options: bought $32 put, sold $29 put (June 16th expiration for both) to open a "bear put", or "put debit spread"

• Price paid: 0.58

• Size: 3

• Max capital risk: $174 ($58 per spread)

• Max profit potential: $726 ($242 per spread)

Management

• Added 1 contract on 8 May 2023 for 0.48 (Why just one? Not that much away from opening price, so I did not want to get very aggressive.)

• New size: 4

• New average price: 0.55

WHR trade (opened on 5 May 2023, closed on 9 May 2023)

• Options: bought 135 put, sold 125 put (June 16 expiration for both) to open a bear put, or a put debit spread

• Price paid: 3.25

• Size: 1

• Max capital risk: $325

• Max profit potential: $675

• Exit: 3.30, or $330

• Result: $5 profit, almost nothing (but still green)

• Reason for closing: XHB nicely green on a red day (remarkable relative strength), so while WHR was still red and my position was on green, I closed. Because a rising tide lifts all the boats, and with the sector (XHB) heading higher, the risk that stocks in it (including WHR) go up too are rather high. Reducing risk here.

Want to trade the reversals with us?

If you would like to test the Karinen Momentum indicator used in this video, you can start a trial at https://optioninvestors.club/rcs-trial