AAPL Pressure Cooker Top | Live Options Day Trading

Day trading options live on AAPL for the pressure cooker top play. This video uses a one lot (one call 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 pressure cooker top pattern on the 30 minute chart as well as the technical breakout that was happening on the daily stock chart on AAPL (Apple 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 video is that you need to understand how the greeks work and impact the value of your contract. We clearly demonstrate how theta and implied volatility cause the price of our options contract to decrease over time, even though price remains steady and relatively unchanged.

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.