🚨HOW TO TRADE OPTIONS CHAIN CHARTS🚨
(THIS IS PART 1 OF 2)
- All examples shown are from 8/9/22 and are 0DTE $SPX options.
- Here are the first 2 ways I trade $SPX with the options chart:
1. Scalp Range High & Low
2. V-WAP Rejection
LET'S BEGIN! (PART 1) 🦩
(THIS IS PART 1 OF 2)
- All examples shown are from 8/9/22 and are 0DTE $SPX options.
- Here are the first 2 ways I trade $SPX with the options chart:
1. Scalp Range High & Low
2. V-WAP Rejection
LET'S BEGIN! (PART 1) 🦩
1) Scalp Range High & Low
- This strategy is ideal for scalpers intra-day and helps to time near-perfect entries and exits with a HARD -20% SL if the range is broken.
- The main rule is that the premium of the strike must be at its lowest of the day where the range is set up.
- This strategy is ideal for scalpers intra-day and helps to time near-perfect entries and exits with a HARD -20% SL if the range is broken.
- The main rule is that the premium of the strike must be at its lowest of the day where the range is set up.
1a)
- The entry must be at the second re-test of the range the strike has formed and should be at the lowest fill of the day.
- Set a limit order for the low of the range or go .05 -.1 lower to try and time the bottom perfectly.
- Strikes under 2.0 are the best for fast scalps!
- The entry must be at the second re-test of the range the strike has formed and should be at the lowest fill of the day.
- Set a limit order for the low of the range or go .05 -.1 lower to try and time the bottom perfectly.
- Strikes under 2.0 are the best for fast scalps!
1b)
- You can also enter the third time it re-tests the range, but it is riskier and the low will most likely be lower on the range which isn't ideal when timing a near-perfect entry.
Let's take a look at some examples from today's trading action! (8/9/22)🦩
- You can also enter the third time it re-tests the range, but it is riskier and the low will most likely be lower on the range which isn't ideal when timing a near-perfect entry.
Let's take a look at some examples from today's trading action! (8/9/22)🦩
1c) Example: $SPX 4100p
- The low of the day was 2.0 before we bounced up to 3.5. This is the first leg of the range. We do not enter here. As you can see, we re-test the range low and reverse at 1.9.
Our limit order would have been filled at 2.0 and our SL is at 1.6.
- The low of the day was 2.0 before we bounced up to 3.5. This is the first leg of the range. We do not enter here. As you can see, we re-test the range low and reverse at 1.9.
Our limit order would have been filled at 2.0 and our SL is at 1.6.
1ci) Example: $SPX 4100p
- We are in the trade. Our entry is 2.0. We never hit our SL as the low was 1.9. We go all the way to 5.5 before reversing back down to our entry which is where the SL will be moved to once we scale over +20%.
Recap: $SPX 4100p | 2.0 -> 5.5! +175% 💯
- We are in the trade. Our entry is 2.0. We never hit our SL as the low was 1.9. We go all the way to 5.5 before reversing back down to our entry which is where the SL will be moved to once we scale over +20%.
Recap: $SPX 4100p | 2.0 -> 5.5! +175% 💯
1d) Example #2: $SPX 4130c
- The low of the day was .75 on the first leg of the range. We ran to 2.4 before coming back down to the re-test of the range. THIS IS WHERE WE ENTER.
- Set a limit order for the low of the range (.75). As you can see, the low was .7 the second time.
- The low of the day was .75 on the first leg of the range. We ran to 2.4 before coming back down to the re-test of the range. THIS IS WHERE WE ENTER.
- Set a limit order for the low of the range (.75). As you can see, the low was .7 the second time.
1di) Example: $SPX 4130c
- We would have been filled at .75 and you can see that 1 minute later, the cons were at 1.15. We would scale and move SL to BE and just like that, we made +47% if we put a sell at 1.1!
Recap: $SPX 4130c | .75 -> 1.1! +47% (1 min only)
- We would have been filled at .75 and you can see that 1 minute later, the cons were at 1.15. We would scale and move SL to BE and just like that, we made +47% if we put a sell at 1.1!
Recap: $SPX 4130c | .75 -> 1.1! +47% (1 min only)
1e) Example #3: $SPX 4125c
- The low of the day was 1.6 on the first leg of the range before we ran to 4.4! We then dipped to to 1.55 on the re-test.
- Set a limit order at 1.6 as that is the low of the range and we would have been filled almost perfectly as the low was 1.55!
- The low of the day was 1.6 on the first leg of the range before we ran to 4.4! We then dipped to to 1.55 on the re-test.
- Set a limit order at 1.6 as that is the low of the range and we would have been filled almost perfectly as the low was 1.55!
1ei) Example: $SPX 4125c
- As you can see, the very next candle ran to 2.4, a +50% move in 1 minute. SL was never hit as we never hit -20% and we can easily scale at 2.3! 1 minute and we made +44%!
Recap: $SPX 4125c | 1.6 -> 2.3! +44%
- As you can see, the very next candle ran to 2.4, a +50% move in 1 minute. SL was never hit as we never hit -20% and we can easily scale at 2.3! 1 minute and we made +44%!
Recap: $SPX 4125c | 1.6 -> 2.3! +44%
1eii) THIRD RE-TEST (RISKIER, BUT DOES WORK)
- As you can see, we do re-test a thrid time on the range as the new low is 1.55 from the second leg.
- Set a limit order at 1.55, and we are filled as the low was 1.45! No SL was hit as we never went -20% and we soon ran to 4.5!
- As you can see, we do re-test a thrid time on the range as the new low is 1.55 from the second leg.
- Set a limit order at 1.55, and we are filled as the low was 1.45! No SL was hit as we never went -20% and we soon ran to 4.5!
1eiii)
- What's great about this range is that we have a bottom and top. Our top Is 4.4 from the initial run on the first leg. We hit 4.5 before reversing back down. This is a good way to get a solid scale to catch the entire move!
Recap: $SPX 4125c | 1.55 -> 4.4! +184% 🚀
- What's great about this range is that we have a bottom and top. Our top Is 4.4 from the initial run on the first leg. We hit 4.5 before reversing back down. This is a good way to get a solid scale to catch the entire move!
Recap: $SPX 4125c | 1.55 -> 4.4! +184% 🚀
1f) Example #4: $SPX 4115p
- Here is an EOD scalp. The low of the day was .35 before a move up to .95! We re-test 13 minutes later and we hit a new low of .3!
- Set a limit order at .35 and we are filled! We never hit our SL and we get a huge run to 1.25!
- Here is an EOD scalp. The low of the day was .35 before a move up to .95! We re-test 13 minutes later and we hit a new low of .3!
- Set a limit order at .35 and we are filled! We never hit our SL and we get a huge run to 1.25!
1fi) Example: $SPX 4115p
- This is an end-of-day example as it's past 3:40 pm est which is why the cons are so cheap. This makes a great lotto play and the moves are INSANE! Let's say we sell our runners at 1.2!
Recap: $SPX 4115p | .35 -> 1.2! +243% 🦩
- This is an end-of-day example as it's past 3:40 pm est which is why the cons are so cheap. This makes a great lotto play and the moves are INSANE! Let's say we sell our runners at 1.2!
Recap: $SPX 4115p | .35 -> 1.2! +243% 🦩
2) V-WAP Rejection
- This strategy is good for playing v-wap off $SPY. Please STAY ON THE 1m chart for this strategy on the options chains.
- Premium range doesn't matter here. Can be over 2.0!
- The MAIN RULE is that the v-wap should be tested and rejected once or twice!
- This strategy is good for playing v-wap off $SPY. Please STAY ON THE 1m chart for this strategy on the options chains.
- Premium range doesn't matter here. Can be over 2.0!
- The MAIN RULE is that the v-wap should be tested and rejected once or twice!
2a)
- The main idea behind the V-WAP rejection strategy is to show where $SPY can reverse which can help you snipe the bottom on the opposite side of the options!
- If a put strike is testing V-WAP for the third time, after rejecting the past two, look to grab calls at the low.
- The main idea behind the V-WAP rejection strategy is to show where $SPY can reverse which can help you snipe the bottom on the opposite side of the options!
- If a put strike is testing V-WAP for the third time, after rejecting the past two, look to grab calls at the low.
2b)
- This will allow you to get a near-perfect entry and minimize risk as you are buying at the cheapest price of the day.
- V-WAP is mainly respected on the 5m and 15m so keep an eye on the $SPY chart when watching $SPX chains. This is a good way to avoid being faked.
- This will allow you to get a near-perfect entry and minimize risk as you are buying at the cheapest price of the day.
- V-WAP is mainly respected on the 5m and 15m so keep an eye on the $SPY chart when watching $SPX chains. This is a good way to avoid being faked.
2c) Only Example: $SPX 4110p
- Below are two images of the same strike. The left image shows the V-WAP and my ema's. To see this, add the strike to your watchlist.
- The image on the right shows the clear premium chart with no indicators. To see this, click the trade button.
- Below are two images of the same strike. The left image shows the V-WAP and my ema's. To see this, add the strike to your watchlist.
- The image on the right shows the clear premium chart with no indicators. To see this, click the trade button.
2ci) Example: $SPX 4110p
- The v-wap is testing for the third time here after making a lower low, which indicates a bullish reversal as this is a puts chain.
- You can see that the right image forms a double top at 5.4 where the v-wap rejects for the third time.
- The v-wap is testing for the third time here after making a lower low, which indicates a bullish reversal as this is a puts chain.
- You can see that the right image forms a double top at 5.4 where the v-wap rejects for the third time.
2cii) Example: $SPX 4110p
- Switch to calls at 5.4 as that is the high of the range and is where the v-wap will be rejected on the 1m options chart. You can see that this is a PERFECT entry as the high on the re-test is also 5.4! This is where we grab calls as we are reversing!
- Switch to calls at 5.4 as that is the high of the range and is where the v-wap will be rejected on the 1m options chart. You can see that this is a PERFECT entry as the high on the re-test is also 5.4! This is where we grab calls as we are reversing!
2ciii) V-WAP Rejection Recap
- This strategy is great for identifying reversals using V-WAP which can help to switch to calls or puts depending on where we reject. The puts dropped from 5.4 to 1.5 both times indicating a +260% move with a calls strike. Use Strategy 1 for fill!
- This strategy is great for identifying reversals using V-WAP which can help to switch to calls or puts depending on where we reject. The puts dropped from 5.4 to 1.5 both times indicating a +260% move with a calls strike. Use Strategy 1 for fill!
NOTE
- These examples are all from today (8/9/22) and are during different hours of the market. There are many opportunities with $SPX every day and I hope you guys start watching these chains as I came up with multiple examples just from today, a day before CPI. (Less volume)
- These examples are all from today (8/9/22) and are during different hours of the market. There are many opportunities with $SPX every day and I hope you guys start watching these chains as I came up with multiple examples just from today, a day before CPI. (Less volume)
🚨THIS IS THE END OF PART 1 OF THIS THREAD 🚨
PART 2 IS IN THE NEXT THREAD
3. Trendline Bounce / Rejection
4. 1.0 Fill (Lotto Strategy)
- Leave replies and I will answer!
Please ♥️ and RT as this took HOURS! <3 🦩
PART 2 IS IN THE NEXT THREAD
3. Trendline Bounce / Rejection
4. 1.0 Fill (Lotto Strategy)
- Leave replies and I will answer!
Please ♥️ and RT as this took HOURS! <3 🦩
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