BA Gap Fill Reversal | Live Options Day Trading

On this options day trade we were looking to take advantage of the gap fill reversal happening on the 5 minute stock chart on BA (Boeing Inc.). We had a known entry point, target, and stop loss all in place before even entering the trade.

A key take away from this live options day trade is knowing when to enter a day trade versus when to wait for more confirmation. Just because a key level breaks does not mean that we should just jump into a contract. It’s better to wait for an ideal setup than chase a sub par setup. Once again with the AAPL and FB trades we are illustrating how context is key for determining if there is an entry or not. BA cooperated and gave us all of the requirements to take a trade. We had the gap fill, hammer/lower wick form, and the high of day break coincide with a critical daily level.

When trading options picking the right strike and expiration for the contract is key. On this trade we are using this weeks weekly options, and using the strike just at the money, but not an in the money call option. If you want to learn more about strike and expiration selection feel free to join the discord server linked above and discuss in the trading community.

We used options instead of day trading the stock outright on BA because our profit potential is much greater and capital allocation is much less. Imagine needing $25,000 to have the same exposure that we had using only $375.