In trading, big wins don’t happen by luck—they come from strategy, timing, and disciplined execution. In this post, we’ll dissect a real trade that delivered over 300% return in just seven days, breaking down every decision from entry to exit.
Whether you trade stocks, options, or futures, this case study will reveal:
✔ The setup that signaled the opportunity
✔ Why we chose the exact strike and expiration
✔ How we managed risk for asymmetric upside
✔ The psychological discipline required to hold (and exit)
✔ Key lessons to replicate this success
Let’s dive in.
The Trade Overview
- Asset: Tech Stock (Highly Liquid Large-Cap)
- Strategy: Short-Term Call Option
- Holding Period: 5 Trading Days
- ROI: +315%
Why This Trade Worked So Well
- Catalyst-Driven Momentum – The stock was primed for a breakout.
- Optimal Strike Selection – Balanced risk/reward.
- Perfect Timing – Entered before volatility expansion.
- Controlled Position Size – Never risked more than 2% of capital.
Step 1: Identifying the Setup
Technical Confirmation
- Breakout from Consolidation: The stock had been range-bound for weeks before pushing above resistance on higher-than-average volume.
- RSI Reset: After a pullback, the Relative Strength Index (RSI) dipped near 40, signaling potential upside continuation.
- Moving Average Support: The 20-day EMA acted as dynamic support.
Fundamental Catalyst
- An upcoming product announcement (not yet priced in) created a volatility crush opportunity.
- Institutional options flow showed unusual call buying at key strikes.
Step 2: Selecting the Right Option
Why Calls (Not Stock or Spreads)?
- Leverage: Options amplify gains with less capital.
- Defined Risk: Unlike buying stock, the max loss was limited to the premium paid.
Strike Price & Expiration Choice
- Strike: Slightly out-of-the-money (OTM) for cheaper premium but high upside.
- Expiration:7-10 DTE (Days to Expiry) to capitalize on quick momentum.
Volatility Consideration
- IV was moderate, meaning we weren’t overpaying for options.
- Expected IV expansion due to the catalyst.
Step 3: Entry Execution
- Timing: Entered one day before the breakout confirmation (anticipating momentum).
- Order Type: Used a limit order to avoid slippage.
- Position Size: Allocated only 1.5% of portfolio to the trade.
Step 4: Trade Management
The Mental Game
- Day 1: Stock moved sideways—no panic.
- Day 2: Breakout started—held through minor pullbacks.
- Day 3: Momentum accelerated—resisted the urge to take early profits.
- Day 5: Exited at 315% ROI before the weekend (avoiding gamma risk).
Risk Management Rules Followed
✔ No moving stop-losses wider.
✔ No adding to a winning position impulsively.
✔ Exited before earnings (avoiding IV crush).
Step 5: Exit Strategy
- Profit-Taking: Sold 50% at +200%, let the rest ride to +315%.
- Why Not Hold Longer?
- Gamma risk increases near expiration.
- Profit preservation > greed.
Key Lessons From This Trade
1. Trade the Setup, Not the Hype
- We didn’t chase—we anticipated based on structure.
2. Strike Selection Matters More Than You Think
- OTM calls gave the best risk/reward ratio.
3. Volatility Is Your Friend (If Timed Right)
- Entered before IV expansion, exited before crush.
4. Discipline Outperforms Emotion Every Time
- Sticking to the plan was the hardest (and most rewarding) part.
5. Scaling Out Locks in Gains
- Taking partial profits reduces stress and ensures wins.
How to Find Similar Trades
- Scan for Breakouts – Use stock screeners for volume spikes + consolidation breaks.
- Track Unusual Options Flow – Tools like FlowAlgo or BlackBoxStocks spot smart money moves.
- Trade Around Known Catalysts – Earnings, Fed meetings, product launches.
- Keep Positions Small – This allows you to hold without emotion.
Final Thoughts: Can You Replicate This Success?
Absolutely—but it requires:
✅ Patience (waiting for the right setup).
✅ Preparation (knowing your strategy cold).
✅ Discipline (following rules, not emotions).
This trade wasn’t a fluke—it was execution of a repeatable edge. The best traders don’t rely on luck; they rely on process.
Study this breakdown, apply the principles, and you’ll start seeing high-probability, high-reward opportunities in your own trading.
Now go find your next 300% trade.