Day Trading Parabolic SAR Breakdowns

When the market is bearish or neutral, shorting stocks that break below Parabolic SAR support on the daily chart can generate nice profits day trading. The best profit potential occurs when the following three criteria are met.

1) The breakdown occurs within the first 20 minutes of the open
2) The prior day was a small range day
3) The prior days low was near Parabolic SAR support

We called out three such breakdowns for members five minutes after the open on Friday 4/29/16: CTSH, QCOM, and WBA. Below are the intraday charts of these three trades.

CTSH broke down at $58.99 and hit a low of $57.78.

QCOM broke down at $51.53 and hit a low of $50.11.

WBA broke down at $79.76 and hit a low of $78.28.

Large Call Trades 4/29/16

Unusual Call Activity

6:31 BUY +3,000 SRPT 100 (Weeklys) 29 APR 16 15 CALL @.20 LMT
6:39 BUY +2,000 MGM 100 17 JUN 16 23 CALL @.52 LMT
6:43 BUY +1,900 VXX 100 (Weeklys) 6 MAY 16 18 CALL @.28 LMT
6:51 BUY +2,000 BABA 100 (Weeklys) 6 MAY 16 83.5 CALL @.42 LMT
6:52 BUY +8,881 SDRL 100 (Weeklys) 6 MAY 16 5.5 CALL @.25 LMT
7:01 BUY +3,510 ABX 100 17 JUN 16 22 CALL @.35 LMT
7:20 BUY +1,300 YHOO 100 (Weeklys) 3 JUN 16 39 CALL @.80 LMT
7:32 BUY +1,155 AAPL 100 (Weeklys) 3 JUN 16 93.5 CALL @2.71 LMT
7:37 BUY +1,240 GME 100 (Weeklys) 27 MAY 16 31 CALL @2.71 LMT
7:41 BUY +2,928 JD 100 20 MAY 16 25.5 CALL @1.80 LMT
7:49 BUY +1,244 XLE 100 20 MAY 16 70 CALL @.66 LMT
7:54 BUY +1,711 CELG 100 (Weeklys) 13 MAY 16 112 CALL @.35 LMT
7:57 BUY +3,485 XLK 100 17 JUN 16 44 CALL @.24 LMT
7:59 BUY +2,350 XLF 100 20 MAY 16 24 CALL @.11 LMT
8:00 BUY +6,384 S 100 20 MAY 16 3.5 CALL @.21 LMT
8:14 BUY +1,430 DAL 100 (Weeklys) 6 MAY 16 42.5 CALL @.43 LMT
8:33 BUY +2,000 CNX 100 20 MAY 16 17 CALL @.41 LMT
8:50 BUY +3,418 AAPL 100 20 MAY 16 92.5 CALL @2.45 LMT
8:53 BUY +1,214 PFE 100 20 MAY 16 33 CALL @.29 LMT
8:57 BUY +3,500 GLD 100 20 MAY 16 125 CALL @1.65 LMT
9:02 BUY +3,614 SHPG 100 17 JUN 16 210 CALL @4.50 LMT
9:05 BUY +1,000 JNPR 100 20 MAY 16 24.5 CALL @.22 LMT
9:08 BUY +1,000 AKRX 100 20 MAY 16 30 CALL @1.45 LMT
9:39 BUY +1,347 MU 100 15 JUL 16 12 CALL @.68 LMT
9:46 BUY +16,000 UNP 100 20 MAY 16 89 CALL @1.14 LMT
10:12 BUY +1,500 CHTR 100 17 JUN 16 230 CALL @1.95 LMT
10:51 BUY +6,330 NOV 100 17 JUN 16 40 CALL @.78 LMT
10:58 BUY +1,850 TRGP 100 15 JUL 16 42 CALL @3.10 LMT
11:12 BUY +10,000 VRX 100 15 JUL 16 40 CALL @2.60 LMT
12:37 BUY +2,000 TGT 100 (Weeklys) 6 MAY 16 80 CALL @.64 LMT
12:46 BUY +1,560 HTZ 100 (Weeklys) 6 MAY 16 9.5 CALL @.24 LMT