AAPL Flush Point | Live Options Day Trading

Day trading options live on AAPL for the flush point play. This video uses a one lot (one put option contract) to illustrate the power of a good strategy and eliminating guess work.

On this options day trade we were looking to take advantage of the head and shoulders pattern on the 30 minute chart as well as the flush point developing on the 5 minute stock chart on AAPL (Apple). We had a known entry point, target, and stop loss.

A key take away from this video is that you need to understand the broad market context before deciding how aggressive to be with your trade plan. If you are trading counter trend to the SP500 or NASDAQ, it will mean that you need to be more aggressive and take profits sooner rather than later. In this example of day trading AAPL put options we had to be aggressive against a raising market.

When trading options picking the right strike and expiration for the contract is key. On this trade we are using next weeks options, and using the strike just at the money, but not an in the money put 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 AAPL because our profit potential is much greater and capital allocation is much less. Imagine needing $11,860 to have the same exposure that we had using only $194.