JPM, SATS, and 3.5 Month Reflection

I didn't write yesterday and today is Friday, which means that I will be bored over the weekend.

Nevertheless, the great news is that my edge seems plausible! In my last post I mentioned that JPM and SATS were my hidden good waves. While I didn't track the price of the contracts for SATS, I do recall the JPM one from Wednesday the 15th. I was on site yesterday so I didn't have time to look at the charts so we can look at the performance from yesterday and today based on Wednesday's analysis.

JPM

In the above, I am using the same support and resistance level observed on April 15 after hours. At the time, it closed below the resistance, but in the last two days, we can see that the price increased by $8.95 – This means, that if I had opened a contract expiring on April 24 for a strike price of $310, I would've received 100% ROI by today. I recall the price of a $308 call being about $3.05 per contract, at this moment it is at $4.35 and that is lower than it was earlier as JPM did close at $310

Let's now take a look at SATS

In the above chart, I called the uptrend right at the resistance observed. It was tricky to call this one because the resistance was being tested, but the RSI gave me a bit of confidence. Now, I must say, that the first hours of April 16 would've dropped the price slightly OR it would've been a great discount, which means that the ROI today would've been much higher.

I think this is such a great edge that I've identified and I've seen it work personally for AAPL and AMZN where I literally had good 40% ROI for both. Seeing the callouts for JPM and SATS validates this approach for me. As mentioned, I did almost get flagged as PDT and yesterday I didn't have time to actually trade. I do believe I needed today as well to see the contract play out for two days and not just one.

So although the market will be closed, I think I need to roll up my sleeves and see this approach from the flip-side as well. While the market has been on a rally, it can always flip back to bear, and I need to be prepared for all kinds of waves.

Final Thoughts

I've been on this journey since the beginning of the year, 3.5 months of learning the market by actually living it. I didn't paper trade, I used my real money knowing that I could lose it all. I have lost and written about it [link].

I walked into this journey knowing that I had a price to pay, the price of knowledge and experience. I didn't jump in with a big bank, I knew my risk tolerance and respected it. There have been so many times where I wanted to FOMO trade and didn't, there have been times when I did and lost. The last 3.5 months have taught me patience and discipline the most. So while I have found something that works for me, and I will continue testing it and relying on it until I can do multiple a day or until I can grow my capital for multiple contracts.

This journey has been fulfilling for me, learning from scratch and from zero and watching it come to fruition with nothing but putting in the work. I don't claim to know everything and to be the best at this very moment, and while it is my goal to be one of the best, I am happy I am where I am today.

This weekend I'll look at the flip side of this strategy, see if it can work. This weekend I'll also look for where the best waves might be on Monday and Tuesday. This is in fact my favorite journey so far and I treasure it so close to my hear.