8/22 Day/Swingtrades (Close the Gap Set-up)

On days like today where the market starts off very strong (or weak) in the first 30 minutes, stocks tend to spend the rest of the day searching for direction as traders take profits from the morning gap and others rotate their money, re-establishing new positions. Therefore, many stocks will "close the gap" mid-day before a trend is fully established later in the afternoon. The key here is to establish the position as close to the gap level as possible to minimize risk.

POT - Unfortunately, I was a bit late with POT so my stop was set too tight. Had I entered at the gap level (184.00), the appropriate stop would have been closer to 184.60. In any case, I got stopped out before POT tanked along with energy/commodities.
Bought @ 182.84, Sep 230 Puts
Stop @ 183.50
Sold @ 183.50
Loss - $0.70 on Puts

GS - I traded this gap much better. I caught this as it stabilized at 157.00 and set the stop @ 156.70. I still had the position from yesterday so I sold today's calls near the close to minimize exposure over the weekend.

Bought @ 157.50, Sep 120 Calls

Sold @ 159.60

Profit - $2.00 on Calls

Stop @ 156.70 on first set of Calls

MCD - I typically don't trade slow movers like this but MCD had a lot of momentum following earnings and has pulled back to the moving averages on lower volume. Yesterday would have been the best entry so I went with a half position today.

Bought @ 63.26, Sep 57.5 Calls

Stop @ 61.90

CSIQ - I sold the Sep 35 Calls as the opening range low could not hold. I was hoping the solar laggards would catch up with FSLR/SPWR/LDK/ENER but the action the past couple days has been disappointing.

Bought @ 31.27, Sep 35 Calls

Sold @ 31.33

Loss - $0.05 on Calls

SPWR - Moving stop to 94.40.

AMZN - Moving stop to 83.40

VPHM - Keeping stop at 13.40