The tape looked solid this morning. MU reported last night and was flat in the pre-market, and with that report behind us, QQQ, NVDA and MSFT all look breakout ready. That makes this a good week to show how I manage a position that did not cooperate right away. Let’s take a deeper look at the SPCX put credit spread:
Why SPCX Made My List
On Friday, September 18, SPCX showed up on my watchlist off the Top Bull rankings from the prior day’s close, right alongside AAPL, DELL, META, CRWD, MU, AMD, ANET and NVDA. That afternoon I sold a put credit spread on it in the Compounding Growth Rooms.
A put credit spread is a defined-risk way to lean bullish. I collect the premium up front, my max loss is set the moment I open it, and I do not need the stock to rip. I need it to hold above my short strike into expiration. That is the type of trade I like to pair with a name ranking well in my Big 3 Squeeze system.
By Wednesday, September 23, it sat in the open positions list next to ARKK, NVDA, QQQ and AVGO. I held it into the weekend on Friday, September 25.
The SPCX Put Credit Spread Hit the Chopping Block
Monday, September 28 is where it got uncomfortable. That same day Starship reached orbit for the first time, and by the afternoon SPCX was still the weakest of my open positions. I told the room it was the one at risk of being on the chopping block if it could not improve that week.
Tuesday morning I was blunt about it: not a huge fan of this one at the moment. If it could work its way back above the 21 EMA, I would let the trade work. Otherwise, it was the only open position I was ready to cut.
A position on the chopping block does not mean I panic. It means I define the line ahead of time, and I let price tell me which side of it we are on.
SPCX, Daily Chart 10.01.26
The Line I Drew
Early in Tuesday’s session, I set the hourly 200 SMA as the over/under level for the trade. I did not want to get shaken out on a minor dip below it, but a hard break of that level would trigger a cut of the position, and I said I would post the exit if it failed.
It did not fail. By late morning SPCX had a nice recovery off the opening lows, and I held. In Tuesday’s video I said this was the put credit spread I wanted to add to.
Wednesday, with MU earnings on deck that evening, I cut the rule down to one sentence: this is a hold so long as it does not take out the low of the week. It held that too.
The exit rule on the SPCX put credit spread never changed once it was set. I only made it shorter.
SPCX, Hourly Chart 10.01.26
Where the SPCX Put Credit Spread Stands Now
This morning I put in a GTC exit order on the SPCX put credit spread to buy it back for a profit. In four sessions it went from the one name on the chopping block to the one I am working an exit on. That order is working as I write this, and when it fills, members will see it in the room first.
The exact entry and the exit order stay in the room. What I can show here is the process, because that part does not change from trade to trade. If the order fills, the trade is done. If SPCX takes out the low of the week first, the cut happens instead, and I will post that too.
Headlines Did Not Make the Decisions
It has been a loud stretch for SpaceX. Starship’s first orbit put 26 Starlink satellites up, and the Crew-13 mission to the International Space Station was lined up for this week. None of that showed up in how I managed this trade. Every decision came off a level: the 21 EMA, the 200 SMA, and the low of the week.
Same rule as always: pick the level before the trade gets tested, then let price make the call.
Stay Focused,
Taylor Horton
Chasing a setup late can flip your risk and reward upside down. Watch the replay of Tr3ndy Jon McKeever and Melissa Beegle’s free Trendy Precision session and see the check Jon runs before every entry.