The Official Options Thread

[Blazed]

Originally Posted by lane121

Hey Blazed, when it's extremely volatile, like it has been the last few weeks, would you suggest expanding the stop outs a little too? Generally, I think a break 5-6 pts away from entry is more than enough you've said- but when we are getting bigger moves I was just curious if a break or close above HOD would have been a stop or the next closest ATR of 5713? I know when the market changes we adapt, but I wasn't sure if applying that same thought process to stop outs would be recommended as well. Thanks!

Correct. On volatile days I do expand out and give a little more room and the market could get bigger swings

Yes, the ATR was what I used and I look at the 4hr / daily to see where the closest MA is to a key level. So the ATR and the 4hr 5ma were my 2 stop outs if it broke above 5700

Add to that everyone's risk tolerance is different so if you can't expand out you can still do the 5-6pts

[Blazed]

Beautiful




Technicals are playing a big role and also crypto moving lower is having an effect on all the crypto names

If the idea is for interest rates to move lower then most of banking names will move lower

[Blazed]

Originally Posted by Blazed

Sold 1/2 here, holding half for CPI/PPI

Didn't expect this - all out of other half here

Looked like they would expire worthless but shot up to $2k per contract

Great trade

Originally Posted by Blazed

Crypto sell of as expected. BTC @ 88k from 102k, failed to hold 90. Can’t reclaim 90 > test of 72 should happen

Still looking for a test of 72 area

[ajlaxmn]

Originally Posted by Blazed

Didn't expect this - all out of other half here

Looked like they would expire worthless but shot up to $2k per contract

Great trade









Still looking for a test of 72 area

You must have had a better fill than I did. My fill was $20.00 per, so that was break even for me.

[Blazed]

Originally Posted by ajlaxmn

You must have had a better fill than I did. My fill was $20.00 per, so that was break even for me.

Tiny bit better, took a small L on first trim and basically break even after second trim overall took a small L of $209

Great trade because I wrote these off

[ajlaxmn]

Originally Posted by Blazed

Tiny bit better, took a small L on first trim and basically break even after second trim overall took a small L of $209

Great trade because I wrote these off

I trimmed 2 of 3 for $200 loss on each. I'll leave third for CPI/PPI and see what happens. Possibly cut after that regardless of what happens. Unless tomorrow it pushes even lower.

But yes, this have been on the backfoot since entry.

[Blazed]

No trades today, market could move but CPI/PPI weds n thurs will give better moves

[Blazed]

Originally Posted by ajlaxmn

I trimmed 2 of 3 for $200 loss on each. I'll leave third for CPI/PPI and see what happens. Possibly cut after that regardless of what happens. Unless tomorrow it pushes even lower.

But yes, this have been on the backfoot since entry.

Yeah, the post election run up ran way higher than it should have but the MM’s, hedge funds, and day/swing traders made a killing. Retail and arm chair investors who FOMO’d the ATH’s not so much

If you happened to catch the analysts and “experts” on MSNBC telling ppl to jump in at ATH’s, it’s easy to see why retail investors lose - they’re used as liquidity to get out of positions at highs

I was just happy to get out at about breakeven as you know how much that position was down majority of the time I had it. But this sell off/correction should have happened way before March

[Blazed]

Reminder, overall theme still is for interest rates to move lower and larger capital to get sucked into the US market

That's what I'm waiting on

[Blazed]

Damn. Didn’t expect that big of a move today. Missed it

Once interest rates come down and gov can refinance at a lower rate the markets gonna fly

Powell was supposed to cut rates last week but didn’t lol

At this point it’s just a waiting game

[Blazed]

Lol

That was fast

ONTARIO AGREED TO SUSPEND ITS 25 PER CENT SURCHARGE ON EXPORTS OF ELECTRICITY TO MICHIGAN, NEW YORK AND MINNESOTA, PREMIER FORD SAYS

[ajlaxmn]

CPI came in slightly under across the boards. Probably look to close my 3/31 Put position obviously selling yesterday at 552 would have been more ideal.

Probably only looking to take trades at Key Levels today with confirmations.

5700 (5670/75), 5650, (5633), 5600

SPY 565.5, 552.

[Blazed]

Took this 8ema reject - all done for the day

8ema reject off the push up while flow was selling

Will watch what PMI does tomorrow





Hopefully some trades were taken and money made.

But "money made" isn't as important as figuring out the correlation/causation and market technicals

That said, there's no better time to learn a high income skill that could potentially be life changing

Back at it tomorrow

[Blazed]

Mentioned this back in the stock market thread about 3 years ago

Don't really check my shares too much as I mainly focus on options for day trading

I think this 4 year term is going to be FNMA's release from conservatorship

When it's released FNMA should fly

Should have bought more back when it was a $1

Something to watch - it was over $7/sh the other day

[Blazed]

NLR - Going to watch this ETF now

Amazon $AMZN, Google $GOOGL and Meta Platforms $META all today signed a pledge to at least triple nuclear energy worldwide by 2050 - CNBC

[ajlaxmn]

Two trades today, one bad rookie trade, one better managed (bad entry trade).

First trade was at 10:03, was watching for break below 5596 ATR with 5600 above, didn't take first trade when it broke below because the 1m candle broke and closed but next candle broke above. The 10:03 entry was a FOMO/Rookie mistake when I saw market drop quickly below, my thought was that this was going to be a big momentum move down, market immediately bounced right back up, 10 point 1m candle whipsaw. Was holding until above 5603, early intraday S/R, it broke above so I cut and looked for another entry. Waited until for broke below again, which it did, more patient, but didn't wait for full retest, had a I waited for full retest of level, break above would have invalidated it. I did however continue using 5603 as S/R for area to exit if break above, it held twice, then market finally moved down (Flow was selling, volume showed sellers in control with multiple red candles, trend was red). Only took two contracts on second entry. Sold first contract at touch of previous close. Held second contract due to volume, flow, trend, with the expectation of breaking and testing 5550. Sold contract when market looked like it was moving up at 10:54, should have held until break above 5589 (market bounced twice earlier), then I would have been in position for 5550. Lost on first trade, made profit on second, first trade was bigger position so total today was a loss.

Still learning. Only thing that frustrates me is the bad entry (this one I knew better), and not being able to do this every day. Could care less about the money now, it's only a couple hundred when I lose.

Back at it next Wednesday, until then, OnDemand paper trades to practice entry and management.

[Blazed]

PPI in 4

No idea what it’s going to do but should be fun either way

[Blazed]

Originally Posted by ajlaxmn

Two trades today, one bad rookie trade, one better managed (bad entry trade).

First trade was at 10:03, was watching for break below 5596 ATR with 5600 above, didn't take first trade when it broke below because the 1m candle broke and closed but next candle broke above. The 10:03 entry was a FOMO/Rookie mistake when I saw market drop quickly below, my thought was that this was going to be a big momentum move down, market immediately bounced right back up, 10 point 1m candle whipsaw. Was holding until above 5603, early intraday S/R, it broke above so I cut and looked for another entry. Waited until for broke below again, which it did, more patient, but didn't wait for full retest, had a I waited for full retest of level, break above would have invalidated it. I did however continue using 5603 as S/R for area to exit if break above, it held twice, then market finally moved down (Flow was selling, volume showed sellers in control with multiple red candles, trend was red). Only took two contracts on second entry. Sold first contract at touch of previous close. Held second contract due to volume, flow, trend, with the expectation of breaking and testing 5550. Sold contract when market looked like it was moving up at 10:54, should have held until break above 5589 (market bounced twice earlier), then I would have been in position for 5550. Lost on first trade, made profit on second, first trade was bigger position so total today was a loss.

Still learning. Only thing that frustrates me is the bad entry (this one I knew better), and not being able to do this every day. Could care less about the money now, it's only a couple hundred when I lose.

Back at it next Wednesday, until then, OnDemand paper trades to practice entry and management.

As long as you’re learning the technicals and the “why” that’s all that matters

Good trades and thought process, just some minor tweaking and patience and the entries/exits will be on point

[Blazed]

Market didn't react to PPI and jobs, futures flat

So might get a relief bounce today

SPX: 5600 key level / 5550 (5497) / 5650 (5673)

SPY: reject 565.2 area

If the market chops I'll call it a day early and check back power hour

[Blazed]

Originally Posted by Blazed

Market didn't react to PPI and jobs, futures flat

So might get a relief bounce today

SPX: 5600 key level / 5550 (5497) / 5650 (5673)

SPY: reject 565.2 area

If the market chops I'll call it a day early and check back power hour

SPX: 5550 & 5600 key level✅ - lined up perfect with the ema for a solid trade, all out here

Flow is starting to buy so it might bounce and retrace like yesterday - not taking a call position. All you need is one good trade

Waiting for 5600 again to see if it can break and hold or another reject Watching flow - flow is sideway right now

Added some 2dte calls for SPY @ 5550. Will cut if it breaks below 5550 with strength

[Blazed]

Should have got a relief bounce today but looks like hedge funds are trying to create entry positions

[Blazed]

This sell off has nothing to do with tariffs, absolutely nothing

If you've read any books on how the market works and understand how the market works you would have been positioned for this pullback

Reality is retail traders are naively optimistic and lured into the market by occasional wins. But systematically they are ill prepared to navigate the market and this is easy pickings for smart money & MM's just running around like a vacuum cleaner sucking up free cash

System is built on the banking industry and wealth transfer from working class to top 1%ers. You either understand how it works and get on board or you get raked, stay on the hamster wheel, and keep powering the wealth transfer

The stock market thread is a great example of the above

[lane121]

Originally Posted by Blazed

This sell off has nothing to do with tariffs, absolutely nothing

If you've read any books on how the market works and understand how the market works you would have been positioned for this pullback

Reality is retail traders are naively optimistic and lured into the market by occasional wins. But systematically they are ill prepared to navigate the market and this is easy pickings for smart money & MM's just running around like a vacuum cleaner sucking up free cash

System is built on the banking industry and wealth transfer from working class to top 1%ers. You either understand how it works and get on board or you get raked, stay on the hamster wheel, and keep powering the wealth transfer

The stock market thread is a great example of the above

Are there any books that you found particularly beneficial to gain greater insight on how the market works? Regarding technicals, the only suggested one that I have read so far was a complete guide to volume price analysis.

Also, what indications led to a potential relief bounce for this morning's premarket plan or was it just the lack of movement from data and futures being flat, especially after so many days of the market opening significantly lower? I see that we are outside the BB's on the weekly as well, so I wasn't sure if that factored in to a potential relief bounce or if that could indicate a potential relief rally this week or next week. Thank you!

[Blazed]

Originally Posted by Blazed

Mentioned this back in the stock market thread about 3 years ago

Don't really check my shares too much as I mainly focus on options for day trading

I think this 4 year term is going to be FNMA's release from conservatorship

When it's released FNMA should fly

Should have bought more back when it was a $1

Something to watch - it was over $7/sh the other day

Tweets from Pulte after he got FHFA nomination yesterday evening

Good start

Fannie Mae and Freddie Mac are great American Icons, and under President’s leadership of America, they will return (safely and soundly) to their Glory!

For far too long, Fannie Mae and Freddie Mac have been underperforming (compared to where they should be at) as companies and in Safety and Soundness but now, thanks to President Trump and his Golden Age of Housing, we will fix it, Effective Immediately!

[Blazed]

Originally Posted by lane121

Are there any books that you found particularly beneficial to gain greater insight on how the market works? Regarding technicals, the only suggested one that I have read so far was a complete guide to volume price analysis.

Also, what indications led to a potential relief bounce for this morning's premarket plan or was it just the lack of movement from data and futures being flat, especially after so many days of the market opening significantly lower? I see that we are outside the BB's on the weekly as well, so I wasn't sure if that factored in to a potential relief bounce or if that could indicate a potential relief rally this week or next week. Thank you!

As far as books, If that was the one by Anna Culling that's a good one

As far as understanding how the market works, just study MA's, how the market makers work (rebalancing / buying selling), and what moves the markets (options). Haven't seen or found a good book on it, just picked up bits and pieces along the way

I'll see if I can find something on it this evening