GS 6/27 (Trades)

3-Min scalp:

Bought GS Jul 08 180 Put $7.55
Sold GS Jul 08 180 Put $7.75

Exited TWS to let D trade before capturing my trade...

2nd scalp was a loss:



I'm thrilled though, coz it's my first experience at cutting loss.

What happened was that I entered at a point that was quite close to the support of my channel. I would have made a profit had I long the stock instead of a put.

Chose 180 put with a 0.4 delta because gamma was slightly higher than 185 put.

Bad choice. As price dipped, price of my put option was not catching up.

Although the setup was close to perfect, and 5min chart was agreeing with 10-min as I entered, stoch was in oversold region with a bullish cross over in the making and floor of channel was providing good support.

2 minutes into the trade, I noticed the bullish MACD divergence. I exited at a loss of $64 seconds later, immediately after the formation of a spinning top.

I'm happy. I could have lost all that D and I have earned today. I did not reverse my trade and buy a call though. I stuck to my rule and traded according to what appears to be GS' short-term trend. And I was mindful that I was scalping and I wasn't going to turn it into a day-trade just coz I couldn't bear to take a little loss.

At this point, D and I have pocketed a nice profit of $360 for the night, all in a few mins' work. Am now sipping coffee and waiting for an entry.

GS has tanked to 161.8 fib level since the beginning of its session and is now retracing to 61.8.

We'll see what happens next.