The Official Options Thread

[Blazed]

9:45 PMI and 10 JOLTS so keep that in mind.

I don't think I'll take any trades until after the JOLTS is reported.



SPX: top 4590 (break above 4595>4600) / bottom 4520 / key level 4550 + ATR's (keep in mind where solid previous S/R levels are)



Watching:

SPY: bounce @ 453.4 & reject @ 458.3

NVDA: If it loses 450 then 435.5 is next bounce area.

IWM: Small account friendly. Looking for an uptrend entry @ break above premarket highs

BABA: watching to grab some long term equity. BABA trade will be the same as PYPL. I'll sell long dated puts against my shares.


Notable:

Moody's affirms China's A1 rating, changing the outlook to negative.

Remember to focus on execution first then consider profit. Once you get the entries/exits down, profit will come. Trade strong signals only.

Trust what you see. As a level is approaching have a plan for when it hits and follow the plan.

[Blazed]

No trades today. I was waiting for data to drop then had to take care of somethings. Still watching BABA to hit the 70 area.

Originally Posted by Blazed

In these SPY240119P460 filled 10 @ $750✅- out of this position. Sold @ $930/con for a $1.8k gain.

Manipulated data dropped today and pumped the market. Futures are up right now too.

This is why I took profits when I did even though the calls were a month out. I wasn't expecting to hit that fast and I didn't realize JOLTS was dropping this week when I bought them on Friday.

So I'll look for a new long dated put entry this month. Only other market catalyst we have is FOMC.

[Blazed]

ADP dropped this morning and gave us a push up.

SPX: top 4620 (resistance 4600/4608) / bottom 4550 (break below 4545) / key level 4580 (gap from this morning @ 4578.5) + ATR's


Watching:

SPY: N/A. Don't see anything I like.


Trade smart wait for entries at levels. NFP Friday.

[ajlaxmn]

No trades yesterday, wasn't around.

Bottom 4550, Top 4630 (resistance 4610, also watching the 1Y high of 4607), Key level I had as 4600, but seeing Blaze's level 4680 I will watch that as well.

[Blazed]

Originally Posted by ajlaxmn

No trades yesterday, wasn't around.

Bottom 4550, Top 4630 (resistance 4610, also watching the 1Y high of 4607), Key level I had as 4600, but seeing Blaze's level 4680 I will watch that as well.

Just so you know how I got that and why for notes and in the future when a key level isn't as clear:

We opened way above 4550 so making that the key level was too far of a drop. Yesterday we rejected @ 4580 it was also yesterdays high (also have that gap right under 4580 @ 4578 & ATR @ 4576). Since we opened above it, that would be the key level I need to see bounce/hold for calls or break below for puts and potentially ride puts down to 4550.

I try to keep everything in a tradeable range that makes sense.

[ajlaxmn]

Originally Posted by Blazed

Just so you know how I got that and why for notes and in the future when a key level isn't as clear:

We opened way above 4550 so making that the key level was too far of a drop. Yesterday we rejected @ 4580 it was also yesterdays high (also have that gap right under 4580 @ 4578 & ATR @ 4576). Since we opened above it, that would be the key level I need to see bounce/hold for calls or break below for puts and potentially ride puts down to 4550.

I try to keep everything in a tradeable range that makes sense.

All makes sense, and great info. Thank you.

[Blazed]

Originally Posted by Blazed

ADP dropped this morning and gave us a push up.

SPX: top 4620 (resistance 4600/4608) / bottom 4550 (break below 4545) / key level 4580 (gap from this morning @ 4578.5) + ATR's


Watching:

SPY: N/A. Don't see anything I like.


Trade smart wait for entries at levels. NFP Friday.

Failure to close this gap shows MM's front running to make sure they get filled. So I'll be waiting for gap fill to take calls.

Squeeze could shoot us to 4618/20 based on what I'm seeing not necessarily today though but not impossible if we get a trend day.

[Blazed]

Originally Posted by Blazed

Failure to close this gap shows MM's front running to make sure they get filled. So I'll be waiting for gap fill to take calls.

Squeeze could shoot us to 4618/20 based on what I'm seeing not necessarily today though but not impossible if we get a trend day.

So I'll be waiting for gap fill to take calls✅- gap filled @ 4578.5, 10 point move up hit range resistance all out. up $400 per contract $600 > $1,000.

Up $2.4k on the day.

Looking for next trade.

[Blazed]

Watching key level 4580 + volume here.

[Blazed]

Originally Posted by Blazed

Watching key level 4580 + volume here.

Ok, out of this trade. Took puts off this volume. Took profit @ $230 per con. Buyers keep stepping in and it looks like they're chopping and I don't like scalping.

Looking for next trade, I'll give it about 30 mins and see what they do. We keep rejecting this ATR (4576) but moves too small to play them.

Flow is mixed, no direction in flow right now.

If I don't see anything I might beck back power hour.

Up $3.4k on the day.

[Blazed]

Originally Posted by Blazed

Ok, out of this trade. Took puts off this volume. Took profit @ $230 per con. Buyers keep stepping in and it looks like they're chopping and I don't like scalping.

Looking for next trade, I'll give it about 30 mins and see what they do. We keep rejecting this ATR (4576) but moves too small to play them.

Flow is mixed, no direction in flow right now.

If I don't see anything I might beck back power hour.

Up $3.4k on the day.

Of course after I sell




We keep rejecting this ATR (4576)✅


I just posted about following plans and didn't follow mine today lol. The chop was what really pissed me off. Plan was as long as we stayed under 4580 I'd stay in as volume clearly showed downside was coming. Buyers kept stepping in and pushing it back up, looked like they were building a base.

Would have been a nice trade had I held as I had 5 cons

[ajlaxmn]

12/6 – Got into 4580 C when 4578.4 Gap filled, entry was not good as I did not enter in right at the fill of 4578.4, and I did not get into 4575 C (Blaze correct me if I’m wrong but it should have been 4575 C correct? Not 4580 C.) I had a profit target of 4591, however SPX broke through 4576 ATR, I held a little longer to avoid cutting too early being that there was the Key level and ATR at this spot. Cut for a $500 loss. Need to watch these quick tight moves, I have done this in the past where I take the same trade as Blaze, however I look at a higher P/T, and the trade turns and goes against me. Need to note that in a trade the moves 10 points to take profits if it appears to hit resistance, which would have been the case were I in 4575 C.

Next trade I got into was 4575 P at close below of 4576 ATR, Confluence of SPY below ATR, Reject of ATR on SPX, and sellers stepping in on SPY. Entry was not great on the first contract, filled at 8.80, should have waited for more of a retest/reject, added another contract at 10:45, filled at 6.60. Held through all the chop, which was VERY frustrating, but SPX kept rejecting and SPY did not break above ATR, SPX finally moved down, however I sold the first contact that filled at 8.80 for a $50 loss as I definitely had in the back of mind I wanted to limit the lost after the initially trade and then chopping around for almost an hour on this trade. I held the “runner” too long, not cutting at the 4563 support as I had the profit target of 4558. Should have sold at the break below 4567, or even at the third bounce of 4563. I did this in a trade previously, two weeks ago I think, where I failed to take profits at a third bounce of a intra day support. The “runner” netted me $200. At one point I was down $1000, but didn’t worry/didn’t care because of what I was seeing with the ATR reject. Entry and exit were not good on either trade. Plan for second trade was fine, I have no issues with that, just need to make it a little better with entry and exit. Think I might limit myself to not taking trades in the first 30 minutes of trading, been doing good with sticking to my no trades in the first 15 minutes rule, but I think I might move it to 30 minutes, Let volume play out a little more.

[Blazed]

Originally Posted by ajlaxmn

12/6 – Got into 4580 C when 4578.4 Gap filled, entry was not good as I did not enter in right at the fill of 4578.4, and I did not get into 4575 C (Blaze correct me if I’m wrong but it should have been 4575 C correct? Not 4580 C.) I had a profit target of 4591, however SPX broke through 4576 ATR, I held a little longer to avoid cutting too early being that there was the Key level and ATR at this spot. Cut for a $500 loss. Need to watch these quick tight moves, I have done this in the past where I take the same trade as Blaze, however I look at a higher P/T, and the trade turns and goes against me. Need to note that in a trade the moves 10 points to take profits if it appears to hit resistance, which would have been the case were I in 4575 C.

Correct. On SPX in tight ranges you want to be ITM as soon as possible. I also took the 4575 calls because that was the support right below gap. Break below 4575 I would have cut.

On the flip side of that, for smaller accounts, if you're expecting a bigger move you can do the 4580 or 4585 to get cheaper contracts. But make sure the move will be big enough to get you ITM and then some.

Next trade I got into was 4575 P at close below of 4576 ATR, Confluence of SPY below ATR, Reject of ATR on SPX, and sellers stepping in on SPY. Entry was not great on the first contract, filled at 8.80, should have waited for more of a retest/reject, added another contract at 10:45, filled at 6.60. Held through all the chop, which was VERY frustrating, but SPX kept rejecting and SPY did not break above ATR, SPX finally moved down, however I sold the first contact that filled at 8.80 for a $50 loss as I definitely had in the back of mind I wanted to limit the lost after the initially trade and then chopping around for almost an hour on this trade. I held the “runner” too long, not cutting at the 4563 support as I had the profit target of 4558. Should have sold at the break below 4567, or even at the third bounce of 4563. I did this in a trade previously, two weeks ago I think, where I failed to take profits at a third bounce of a intra day support. The “runner” netted me $200. At one point I was down $1000, but didn’t worry/didn’t care because of what I was seeing with the ATR reject. Entry and exit were not good on either trade. Plan for second trade was fine, I have no issues with that, just need to make it a little better with entry and exit. Think I might limit myself to not taking trades in the first 30 minutes of trading, been doing good with sticking to my no trades in the first 15 minutes rule, but I think I might move it to 30 minutes, Let volume play out a little more.

This is a good idea while were choppy. Also, good RM and awareness.



----------------------------------

Added what I saw:

Tight range resistance where I sold my calls





Reason why I sold my puts - looked like they were building a base.

[Blazed]

Market is in a tricky spot right now so sizing down today.


SPX: top 4600 (resistance 4595) / bottom 4520 / key level 4550 (4545 support) + ATR's


Watching:

SPY: bounce @ 453.4 and 460-462 area reject

BABA: getting close to my entry @ 70


NFP tomorrow so might range today. Will wait 15 mins at least to take a trade unless 4550 is hit. Don't force and wait for the trades to come to you.

[Blazed]

Originally Posted by Blazed

Market is in a tricky spot right now so sizing down today.


SPX: top 4600 (resistance 4595) / bottom 4520 / key level 4550 (4545 support) + ATR's


Watching:

SPY: bounce @ 453.4 and 460-462 area reject

BABA: getting close to my entry @ 70


NFP tomorrow so might range today. Will wait 15 mins at least to take a trade unless 4550 is hit. Don't force and wait for the trades to come to you.

Just closed my calls position. Got in calls @ the break above and retest of 4570 ATR level. Filled @ $750/con and just sold for $1.5k/con. $4.6k for the day.

I'll see where we are during power hour and might possibly swing for data tomorrow.

Still watching for long dated SPY puts - 462 - 465 area is ideal if we can get up there tomorrow/next week.

[Blazed]

Nice bounce on ES. Erased that whole drop off data. Should be an interesting day lol.

Could be another choppy day. Keeping an eye on VIX today.



SPX: top 4600 (break above 4610) / bottom 4530 (4550 support) / key level 4575 + ATR's




Watching:

SPY bounce @ 454.3

TSLA bounce @ 233 area

APPL @ 200 (sometime this month should hit) I will be selling 210 calls a year out against my shares

NVDA & AMZN short entry on watch


It's Friday, no need to force or rush anything.

[ajlaxmn]

Originally Posted by Blazed

Nice bounce on ES. Erased that whole drop off data. Should be an interesting day lol.

Could be another choppy day. Keeping an eye on VIX today.



SPX: top 4600 (break above 4610) / bottom 4530 (4550 support) / key level 4575 + ATR's




Watching:

SPY bounce @ 454.3

TSLA bounce @ 233 area

APPL @ 200 (sometime this month should hit) I will be selling 210 calls a year out against my shares

NVDA & AMZN short entry on watch


It's Friday, no need to force or rush anything.

Have an appointment today at 11, need to leave at 10:30, going to stick to my NO trades for 30 minutes plan, which leaves only 30 minutes for a trade, don't want to force anything for the sake of just "taking a trade" so I may lean towards not taking anything today. We'll see.

Blaze, your recap from yesterday said you take the trade based on 4570 ATR, I didn't have an ATR at 4570, did you mean 4570 support? There was a 4573 ATR, were you referring to that one? In that instance were you in 4570 C or 4575 C?

Thanks.

[Blazed]

Originally Posted by ajlaxmn

Have an appointment today at 11, need to leave at 10:30, going to stick to my NO trades for 30 minutes plan, which leaves only 30 minutes for a trade, don't want to force anything for the sake of just "taking a trade" so I may lean towards not taking anything today. We'll see.

Blaze, your recap from yesterday said you take the trade based on 4570 ATR, I didn't have an ATR at 4570, did you mean 4570 support? There was a 4573 ATR, were you referring to that one? In that instance were you in 4570 C or 4575 C?

Thanks.

Correct. Typo, I meant the 4373 ATR while thinking about next support 4570 if it breaks.

[Blazed]

Originally Posted by Blazed

Nice bounce on ES. Erased that whole drop off data. Should be an interesting day lol.

Could be another choppy day. Keeping an eye on VIX today.



SPX: top 4600 (break above 4610) / bottom 4530 (4550 support) / key level 4575 + ATR's




Watching:

SPY bounce @ 454.3

TSLA bounce @ 233 area

APPL @ 200 (sometime this month should hit) I will be selling 210 calls a year out against my shares

NVDA & AMZN short entry on watch


It's Friday, no need to force or rush anything.

key level 4575✅- trimmed. Next trim 4595 - 4600 or if we can't keep the momentum, I'll cut runners @ a break below 4580.

Contracts moved nice on that 13 point move





-------------------

Added 8:57

And out of runners. Couldn't get above premarket resistance that time

Looking for next trade

[ajlaxmn]

I'd want to see break below 4575 and retest for Puts for entry. break above 4595 I don't think would entice since 4600 is right above, so possibly would look for reject there. Only two trades I think I would consider. Don't really see any bounce trades that I would be interested in.

[Blazed]

Originally Posted by Blazed

key level 4575✅- trimmed. Next trim 4595 - 4600 or if we can't keep the momentum, I'll cut runners @ a break below 4580.

Contracts moved nice on that 13 point move





-------------------

Added 8:57

And out of runners. Couldn't get above premarket resistance that time

Looking for next trade

And out of runners.❌


Forgot about data. But we hit my PT too bad I cut 3 mins before lol.






Watching 4600 now. Volume still strong so being patient.

[ajlaxmn]

Got into 4605 Puts when we lost momentum, filled at 9.00 sold at 16.90, need to leave for dentist so can't hold, plus only one contract, so I need to take profits, took profit when we bounced middle BB on SPX and VWAP on SPY.

[Blazed]

Originally Posted by ajlaxmn

Got into 4605 Puts when we lost momentum, filled at 9.00 sold at 16.90, need to leave for dentist so can't hold, plus only one contract, so I need to take profits, took profit when we bounced middle BB on SPX and VWAP on SPY.

Gain of $790 very nice trade! Caught the top, took the same when I saw momentum loss and overbought.

[Blazed]

Calling it a day here too. Took 4605 puts @ momentum loss and overbought conditions. Rode puts all the way back to VWAP on SPY.

Gains would have been higher if I didn't get faked out on my calls.

Weekend is a good time to study up on charts and S/R. Only 23 days left in 2023, it's not to late to level up and learn something new.

[Josh611]

Bought some lotto LAZR $2.50 Jan 5 calls for $0.20

This thing has been crushed. I don’t think people can possibly sell this thing for a loss anymore lol.

One bit of news or a few positive market days for junk stocks and this thing can get to $3.50 in a minute. 30% short float.