The Official Options Thread

[Blazed]

Originally Posted by ajlaxmn

No trades so far. Not sure I'll test 4360 Puts this time around. Even though it would have been a decent little trade last time it tested.

SPX gap @ 4364.83. I'll be testing puts between the gap and 4370 ATR level. I want to see a lower volume push into the gap. Flow still showing it wants downside.

[Blazed]

Originally Posted by Blazed

SPX gap @ 4364.83. I'll be testing puts between the gap and 4370 ATR level. I want to see a lower volume push into the gap. Flow still showing it wants downside.

There we go. All out here @ 4355. All done trading for the day, up $3.2k on that put trade. This is why you stay patient and wait for the trades.

Great way to end OPEX.


Trade recap:

I'll be testing puts between the gap and 4370 ATR level✅




I want to see a lower volume push into the gap✅

[ajlaxmn]

8/18 – OPEX Day, didn’t set any levels, this was based on Blaze stating he wasn’t setting any, but rather just watching ATR levels. Initially SPX rejected 4358 (two points below 4360 ATR) while SPY was rejecting 435.19 ATR, should have entered 4360 Puts here, would have a worked as SPX moved ten points down. SPX did not go any further, note for future scenarios that OPEX may not move very much so taking profits when you have them is best. Whole day SPX did not make significant moves. Next move was 4364 gap (missed this gap), that Blazed mentioned, I hesitated and did not take trade. 4364 worked out to take Puts (4365?), then sell at 4355 (this moved is based on what Blazed posted). I got in at 4360 Puts, one contract (light), held for move lower but should have sold when hit 4355, ended up selling for $50 loss as SPX kept hovering just above 4360. SPX stayed above 4360 the remainder of the day (at least up until 3:13) which would have killed the one 4360 Put I had if I were to have held on to it. Good patience today but should have pulled the trigger on the 4364 gap reject.

[Blazed]

Originally Posted by ajlaxmn

8/18 – OPEX Day, didn’t set any levels, this was based on Blaze stating he wasn’t setting any, but rather just watching ATR levels. Initially SPX rejected 4358 (two points below 4360 ATR) while SPY was rejecting 435.19 ATR, should have entered 4360 Puts here, would have a worked as SPX moved ten points down. SPX did not go any further, note for future scenarios that OPEX may not move very much so taking profits when you have them is best. Whole day SPX did not make significant moves. Next move was 4364 gap (missed this gap), that Blazed mentioned, I hesitated and did not take trade. 4364 worked out to take Puts (4365?), then sell at 4355 (this moved is based on what Blazed posted). I got in at 4360 Puts, one contract (light), held for move lower but should have sold when hit 4355, ended up selling for $50 loss as SPX kept hovering just above 4360. SPX stayed above 4360 the remainder of the day (at least up until 3:13) which would have killed the one 4360 Put I had if I were to have held on to it. Good patience today but should have pulled the trigger on the 4364 gap reject.

What caused you to hesitate? What did you see?

[ajlaxmn]

Originally Posted by Blazed

What caused you to hesitate? What did you see?

So I think some of it was seeing what you wrote (lower volume push), I assume I know what that was, but wasn't 100%, so wanted to wait and see, plus how the market was moving that day, don't know just didn't have that conviction to just "take it", would have been small position regardless (1 contract), similar to what I did with the contract I took. Just a good lesson to take profits early on OPEX, as I was ITM with my trade, but I held too long.

[ajlaxmn]

At work so won't be posting levels. Will follow and watch.

[Blazed]

This should be a fun week. NVDA earnings and Jackson Hole.


SPX: 4440 top (resistance 4417 - 4420) / 4350 bottom (support 4365 - 4360) gap @ 4381.82 / 4400 key level (need to break this to see upside)


Watching:

Spy 441 - 441.4 reject & 433.6 -433.4 for a bounce.


Be patient and wait for setups.

[ajlaxmn]

Originally Posted by Blazed

This should be a fun week. NVDA earnings and Jackson Hole.


SPX: 4440 top (resistance 4417 - 4420) / 4350 bottom (support 4365 - 4360) gap @ 4381.82 / 4400 key level (need to break this to see upside)


Watching:

Spy 441 - 441.4 reject & 433.6 -433.4 for a bounce.


Be patient and wait for setups.

Blaze you in 4380 Calls, about to scale out a few at 4390 then hold until 4400, scale a few then let some runners go depending on if its still going to go past 4400?

Haha.

[Blazed]

Originally Posted by ajlaxmn

Blaze you in 4380 Calls, about to scale out a few at 4390 then hold until 4400, scale a few then let some runners go depending on if its still going to go past 4400?

Haha.

Always lol.

All out of calls since we had trouble with 4393, contracts moved nice.

This pump off the open was flow based. Now looking for a 4397 - 4000 reject. If we don't get there I'll get in puts with a close below 4385 on the 5 min.



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Added

Looks like they're holding this level and should go test 4397 - 4400 area. Smart play here would be to wait for "close enough" 4400 and get in puts.

[ajlaxmn]

Originally Posted by Blazed

Always lol.

All out of calls since we had trouble with 4393, contracts moved nice.

This pump off the open was flow based. Now looking for a 4397 - 4000 reject. If we don't get there I'll get in puts with a close below 4385 on the 5 min.



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Added

Looks like they're holding this level and should go test 4397 - 4400 area. Smart play here would be to wait for "close enough" 4400 and get in puts.

I wasn't paper trading but just watching SPX, saw the reject of 4381.9 and thought maybe that was close enough for a reject of your gap, but then took a second and realized this was opening at the gap and not rejecting at (SPY volume also confirmed). Took me a minute to see it though, still would have been a good entry were I papertrading. Sucks I wasn't.

[Blazed]

Originally Posted by Blazed

Always lol.

All out of calls since we had trouble with 4393, contracts moved nice.

This pump off the open was flow based. Now looking for a 4397 - 4000 reject. If we don't get there I'll get in puts with a close below 4385 on the 5 min.



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Added

Looks like they're holding this level and should go test 4397 - 4400 area. Smart play here would be to wait for "close enough" 4400 and get in puts.

Trade recap:

Smart play here would be to wait for "close enough" 4400 and get in puts✅ - what a trade that was! Caught puts @ 4396 off the low volume push. Contracts went from $1,120 - $2,550, for a $1,400 gain per contract.

Up $12.5k for the day so I will call it a day here.






Education:


Entered the trade when we pushed up to NHOD on low volume. Buying momentum was slowing down and we were having trouble with 4393 - 4395.

When candles blow past levels, you wait for it to close. If it closes below the level, that's support turned resistance and you can hold your position for more downside.

I exited @ SPY support with buying volume picking up and flow coming in to the upside.

[Blazed]

Originally Posted by Blazed

This should be a fun week. NVDA earnings and Jackson Hole.


SPX: 4440 top (resistance 4417 - 4420) / 4350 bottom (support 4365 - 4360) gap @ 4381.82 / 4400 key level (need to break this to see upside)


Watching:

Spy 441 - 441.4 reject & 433.6 -433.4 for a bounce.


Be patient and wait for setups.

Hope someone else caught the 4360 bounce. ajlaxmn?

I was looking at some stuff online when my alert went off. This is why it's important to set alerts lol.

SPX: support 4365 - 4360✅ - Almost $700 gain per contract. Got $4k off it. A nice lunch time lunch money trade lol.






Selling was slowing so R/R was there for a nice bounce.

[ajlaxmn]

Originally Posted by Blazed

Hope someone else caught the 4360 bounce. ajlaxmn?

I was looking at some stuff online when my alert went off. This is why it's important to set alerts lol.

SPX: support 4365 - 4360✅ - Almost $700 gain per contract. Got $4k off it. A nice lunch time lunch money trade lol.






Selling was slowing so R/R was there for a nice bounce.

Negative. I didn't have my ToS online up. It times out if you don't stat active in it, so I only usually watch the morning moves for about two hours then just review at the end of the day. I did set an alert last friday just to get use to setting it, didn't hit though.

[ajlaxmn]

At work, won't be posting levels. I will follow. Blazed you expect little movement with Jackson hold being tomorrow? Can't remember if speaking their is a quarterly or monthly thing.

[Blazed]

Originally Posted by ajlaxmn

At work, won't be posting levels. I will follow. Blazed you expect little movement with Jackson hold being tomorrow? Can't remember if speaking their is a quarterly or monthly thing.

It'll give the market a nice move. Jackson Hole meeting last year SPX ranged 100 points that day if I remember correctly. One of my biggest days on SPX. So I hope we get the same movement tomorrow.


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Added @ 8:45


SPX gap filled. Waiting on 4400 SPX for calls test. Might bounce early, but no early entries.


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Added @ 9:30

Not taking the 4400 bounce. This chop is why I said no early entries. Might wait for 4393-4390 and see what we do there.

[ajlaxmn]

Originally Posted by Blazed

It'll give the market a nice move. Jackson Hole meeting last year SPX ranged 100 points that day if I remember correctly. One of my biggest days on SPX. So I hope we get the same movement tomorrow.


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Added @ 8:45


SPX gap filled. Waiting on 4400 SPX for calls test. Might bounce early, but no early entries.


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Added @ 9:30

Not taking the 4400 bounce. This chop is why I said no early entries. Might wait for 4393-4390 and see what we do there.

I was curious if you took a light 4400 position with possibility of cutting at 4410.

[Blazed]

Originally Posted by ajlaxmn

I was curious if you took a light 4400 position with possibility of cutting at 4410.

Nah, moving too slow, they were just killing premiums the first hour.


Now I'm watching for a break below 4395.6 for puts, we could probably see a really good move.

Or a break and hold above 4407.44 for calls.

Need to get out of that range for me to take anymore trades trades today.

[Blazed]

Originally Posted by Blazed

Nah, moving too slow, they were just killing premiums the first hour.


Now I'm watching for a break below 4395.6 for puts, we could probably see a really good move.

Or a break and hold above 4407.44 for calls.

Need to get out of that range for me to take anymore trades trades today.

Now I'm watching for a break below 4395.6 for puts✅ bang, got my entry. $3.1k total off both trades.

Done for the day. It was a tough day to trade, but on days like this I prefer to look for put plays instead of calls. Stairs up elevator down.

Flash PMI tomorrow.

[Blazed]

Originally Posted by Blazed

It'll give the market a nice move. Jackson Hole meeting last year SPX ranged 100 points that day if I remember correctly. One of my biggest days on SPX. So I hope we get the same movement tomorrow.


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Added @ 8:45


SPX gap filled. Waiting on 4400 SPX for calls test. Might bounce early, but no early entries.


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Added @ 9:30

Not taking the 4400 bounce. This chop is why I said no early entries. Might wait for 4393-4390 and see what we do there.

Not taking the 4400 bounce. Might wait for 4393-4390✅


There we go. All out. That was annoying af trying to trade in that slow moving chop.

That is why I waited to see if we broke below 4400. Volume wasn't on our side for a bounce. This played out EXACTLY like the other day - the day when I took a $2,600 loss after trying calls at 4500 support .










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From when we tested 4500 and 4493-90 was strong support. Fool me once, not gonna fool me again

Originally Posted by Blazed

Implied open is 4504, I'll test calls at a support test of 4500. Ready to cut if reverses.

Originally Posted by Blazed

Still in down $280 per contract (was down $540 at one point but we didn't break 4490). Puts being sold on flow and so are calls so it makes sense we're stalled out here. I'll cut if it breaks below 4490.

Originally Posted by Blazed

All out on that drop. Took a $2.6k loss so far, this is what happens when you fight the trend. Probably had a little bias too since 4500 has been a solid level.

First red day in a while.

Originally Posted by Blazed

Yeah, probably should have done that but we were holding 4495 -4493 pretty good. Watched flow, it was about 50/50 so held.

Looks like we're bouncing now. I'll be pissed if that was just a stop loss hunt/liquidity sweep lol.

[Blazed]

Jackson Hole and NVDA earnings on watch tomorrow.


SPX: 4475 top (resistance 4420/4430 - 4450) / 4380 bottom (support 4400 /4490 - gap @ 4407.55) / 4420 key level (need to break this to see upside)


Watching:

Spy 444 for puts & 439.5 area for calls

As always be patient and wait for the setups.

[ajlaxmn]

In Office today, no posting levels, I will follow.

[Blazed]

Should be a good day. Data drops 9:45e lets see what it does.


SPX: 4450 top (resistance 4420/4430) / 4350 bottom (support 4390 > 4375/70) / 4400 key level - need to break this to see upside (resistance 4407 > 4412)


Watching:

SPY: 440.11 reject & 436.89 bounce

TSLA on watch - at some point if we can get down into the 190/ 200 area I will add some more equity. I have alerts set on TOS.

NVDA: earnings

[Blazed]

In calls, @ the break above 4400. Flow is selling here a little. 0dte lagging behind other expirations, this usually. means a fake out, lets see.

[Blazed]

Should see 4407.44 then 4416.79 but 4407.44 will be a tough level to break. holding calls through data.

[Blazed]

Originally Posted by Blazed

Should see 4407.44 then 4416.79 but 4407.44 will be a tough level to break. holding calls through data.

Should see 4407.44✅
holding calls through data✅

Bang, trimmed 75% lets see what the runners can do.