I bring to you a day trade in LNKD. I want to preface this by saying you will NOT get rich in a single day trade, can you accumulate wealth day trading? Definitely, day trading can be extremely lucrative. Is position trading far easier? Sure, but you can put up a lot of points on the board day trading this market especially in beta land. That whole topic is for another post, which I will probably forget about and never write.
So what did I do here, I got long 30 LNKD weekly 220 calls at 3.42, I quickly eliminted my risk by selling 2/3 (or 20) at 4.00 so $1,100 gain in less than 3 minutes. So what else did I achieve with these sales? I eliminated all of the risk from the trade within 3 minutes. Now some momentum guys might say I suck and why would I sell there etc.. Well a lot of these guys are heros right now in this very rare tape and my big thing is A. I trade a very aggressive style using the most volatile instrument in the markets and I like to eliminate risk.
Next I sold 5 more at 4.60-4.65 for another $600 now up $1,700 and chage and then I sold 2 more at 6.10 for an additional $500 so currently up $2,200 in a day trade probably less than 5 minutes into it. This is not a get rich quick program nor is it a life changing trade it is just cash flow trade but if I told you, you could enter a day trade and in 3 minutes you would have no risk and the potential to make 5 grand I would have a line a mile long at my Twitter door.. LOL unfortunately I cannot tell you that but at times pieces of the puzzle fall into place.
So what happened we now have $75 in risk on the balance and an oportunity to make $3,000 in addition to $2,200 already booked so we can potentially make $5,200 10 minutes into a day trade and because we are well hedged with the fly we can forget about it and move on with our day and seek out another edge elsewhere.
Lets get into why LNKD and why there one could argue that it looked like a short, as it had fallen below the prior lows of 218 and below the 100 day and was looking awful.
I bring you the LNKD time and sales what do we see well a dip below 217 and bounce back above and then another test of the 217 and all of that red is someone pounding on the 217 but there is someone there buying it all up and not going away. A fairly good indicator of the lows are in temporarily and this should begin moving higher.
The 5 min on LNKD we see the heavy sell off on the break below 218 tand then 217 the bounce back above 217 another attempt to break below and then the ripping starts. So we are invovled about 9:50 and have this puppy wrapped up about 10:10-10:15 (prior times at the top were off a tad lol).
Next important thing is what is the market doing during all of this well I see a few fairly large red sticks down in that 9:45-10 time frame another great indicator that this LNKD is going to head higher especially back by an incredible bull market where dips are more than likely going to be bought.
