Posted by childs_ac on 19th of Jul 2023 at 05:31 pm
Hi Patellee,
Starting the morning I was watching the rising wedge for IWM on
the 10 day/30 min chart. When I noticed price poking above
the top side of the wedge just above 197 I took a small position in
the 196 put. I bought 9:25 a.m. CST and sold 10:01 a.m.
CST. I mainly watched the 5 min chart on the options itself
but I switch back and forth to watch IWM itself for clues.
Now that the MACD was positive on the PUT itself I started to
watch for oversold stochastics while the MACD was remaining
positive. Started buying more aggressive around 10:20 - 10:40
a.m. in the $0.17, $0.12, & $0.07 contract prices....sold it
all just before 11:40 a.m. with the stochastics overbought and the
196 put briefly going in the money.
Crazy volatility in the 0DTE options so its not for the faint at
heart. Of course by end of day these traded worthless with
IWM closing above 196.
I'm always taking very small position sizes on these because
they can go to zero. Matt outlined this type of set up many
times and today it worked out. It just felt like the market
was a bit tired this morning and went with the puts. Hope
that helps.
Posted by patellee on 19th of Jul 2023 at 06:45 pm
Indeed. Very helpful. Thank you for sharing.
I wasn't aware this trick can work on options charts as well
but now that you say it out loud of course it does, why wouldn't
it. I attached what I saw on the IWM chart but when I flip to
options I see exactly what you pointed out. Thanks for
teaching us.
Hi Patellee, Starting the morning I
MACD Kiss / Stoch oversold set up for the winThanks ...
Posted by childs_ac on 19th of Jul 2023 at 05:31 pm
Hi Patellee,
Starting the morning I was watching the rising wedge for IWM on the 10 day/30 min chart. When I noticed price poking above the top side of the wedge just above 197 I took a small position in the 196 put. I bought 9:25 a.m. CST and sold 10:01 a.m. CST. I mainly watched the 5 min chart on the options itself but I switch back and forth to watch IWM itself for clues. Now that the MACD was positive on the PUT itself I started to watch for oversold stochastics while the MACD was remaining positive. Started buying more aggressive around 10:20 - 10:40 a.m. in the $0.17, $0.12, & $0.07 contract prices....sold it all just before 11:40 a.m. with the stochastics overbought and the 196 put briefly going in the money.
Crazy volatility in the 0DTE options so its not for the faint at heart. Of course by end of day these traded worthless with IWM closing above 196.
I'm always taking very small position sizes on these because they can go to zero. Matt outlined this type of set up many times and today it worked out. It just felt like the market was a bit tired this morning and went with the puts. Hope that helps.
Thanks,
Andy
reading this post was an
Posted by tom2590 on 19th of Jul 2023 at 05:41 pm
reading this post was an education, thanks
Indeed. Very helpful. Thank
Posted by patellee on 19th of Jul 2023 at 06:45 pm
Indeed. Very helpful. Thank you for sharing. I wasn't aware this trick can work on options charts as well but now that you say it out loud of course it does, why wouldn't it. I attached what I saw on the IWM chart but when I flip to options I see exactly what you pointed out. Thanks for teaching us.
I don't think -3X ETF's
Posted by matt on 19th of Jul 2023 at 07:51 pm
I don't think -3X ETF's make sense because of the degradation - not intended to be held for weeks to months
OK, I see. But LABU,
Posted by mastermind on 19th of Jul 2023 at 08:41 pm
OK, I see. But LABU, SOXS and TZA are all there?