The Official Options Thread

[lane121]

Blazed, would you adjust that watch to 5570 or would you stick with the morning 5575 area since that has also played a nice s/r area in the past?

[Blazed]

Originally Posted by lane121

Blazed, would you adjust that watch to 5570 or would you stick with the morning 5575 area since that has also played a nice s/r area in the past?

Sure you can adjust it. I just use 5575/76 as a solid area based on previous s/r and it's the 100ma so it's a solid area. Of course having trouble getting up there.

It's a weird area that I willing to miss the trade if it rejects early. Plus flow has been off today. When flow is selling the market pushes and when flow is buying market is dropping.

The weirdness today most likely has to do with PMI tomorrow, GDP Thurs, and earnings this week.

So I've just been sitting on the sidelines today waiting for my levels.

[lane121]

Originally Posted by Blazed

Sure you can adjust it. I just use 5575/76 as a solid area based on previous s/r and it's the 100ma so it's a solid area. Of course having trouble getting up there.

It's a weird area that I willing to miss the trade if it rejects early. Plus flow has been off today. When flow is selling the market pushes and when flow is buying market is dropping.

The weirdness today most likely has to do with PMI tomorrow, GDP Thurs, and earnings this week.

So I've just been sitting on the sidelines today waiting for my levels.

Thanks! I was watching the ma adjust, but makes sense to stick with the solid s/r too

[Blazed]

Trade recap:

No trades today. Didn't see anything I liked and I missed the big move down earlier in the day.

Gains for the day $0.

[ajlaxmn]

Geez the O/I on SPX (Top/Bottom), 5530 & 5595

[lane121]

Originally Posted by ajlaxmn

Geez the O/I on SPX (Top/Bottom), 5530 & 5595

I was just looking at that too lol

[lane121]

Existing home sales @ 10 (no trades for me before then)

SPX top 5600, key level 5550, bottom 5500

5530/5535 displaying strong support (43k and 50k OI).

5590/5595 displaying strong resistance (50K and 42k OI).

Hopefully I didn't mess that up today.

[ajlaxmn]

Originally Posted by lane121

Existing home sales @ 10 (no trades for me before then)

SPX top 5600, key level 5550, bottom 5500

5530/5535 displaying strong support (43k and 50k OI).

5590/5595 displaying strong resistance (50K and 42k OI).

Hopefully I didn't mess that up today.

5575 might be Key Level, if not, it would be resistance.

[Blazed]

SPX: 5550 key level (5535 support) / 5500 bottom (5509 support) / 5600 top (break above > 5620 resistance)(5590 resistance)

Watching:

SPY - Reject @ 555.2 - 557.2 (big area but rejecting this area all premarket) bounces @ 545.88 (HR) - 542.5 (HP)

[lane121]

Originally Posted by ajlaxmn

5575 might be Key Level, if not, it would be resistance.

Yep, needed to add that one as well. Thanks!

[Blazed]

Originally Posted by ajlaxmn

5575 might be Key Level, if not, it would be resistance.

It's still a level, but there's an ATR @ 5577 so I took 5575 off. I'll just watch the ATR.

The 100ma is still there @ 5575

[ajlaxmn]

Originally Posted by Blazed

SPX: 5550 key level (5535 support) / 5500 bottom (5509 support) / 5600 top (break above > 5620 resistance)(5590 resistance)

Watching:

SPY - Reject @ 555.2 - 557.2 (big area but rejecting this area all premarket) bounces @ 545.88 (HR) - 542.5 (HP)

So I was thinking 5575 as Key level because of the S/R in the past couple days in addition to the open of SPX being around 5567.

In addition, although I didn't write the top and bottom out, I would have bottom as 5535 because of the significant O/I.

Feel free to critic after market closes/done for day. Thanks.

[ajlaxmn]

Originally Posted by Blazed

It's still a level, but there's an ATR @ 5577 so I took 5575 off. I'll just watch the ATR.

The 100ma is still there @ 5575

Ok makes sense, answers one of my questions from above.

[Blazed]

Originally Posted by ajlaxmn

So I was thinking 5575 as Key level because of the S/R in the past couple days in addition to the open of SPX being around 5567.

In addition, although I didn't write the top and bottom out, I would have bottom as 5535 because of the significant O/I.

Feel free to critic after market closes/done for day. Thanks.

Tradeable range 50 points top bottom from opening print.

If the market starts selling off strong it will blow past that 5535 easy.

[ajlaxmn]

Originally Posted by Blazed

Tradeable range 50 points top bottom from opening print.

If the market starts selling off strong it will blow past that 5535 easy.

So I remember the 50 point range, but with the HIGH O/I, I thought that might be the bottom being how high it was.

[Blazed]

Originally Posted by ajlaxmn

So I remember the 50 point range, but with the HIGH O/I, I thought that might be the bottom being how high it was.

Correct. That's why I had 5535 as support, but since it's not a whole psych it's not as solid as say 5500. 5500 is pretty much a guaranteed support/bounce area as that's what the HFT's and MM's trade. Where as 5535 isn't.

Reason for the high O/I is yesterday 5535 was close to an ATR level (expecting to be a reject/bounce so puts were being sold), but it wasn't a solid reject/bounce area. For an area to be solid it needs to hold either way for an extended period of time.

From yesterday - not too solid of an area

[lane121]

Just waiting on 5590

[lane121]

Originally Posted by lane121

Just waiting on 5590

Looks like I'm going to be waiting awhile lol. 5550 watch area now.

[Blazed]

Originally Posted by Blazed

It's still a level, but there's an ATR @ 5577 so I took 5575 off. I'll just watch the ATR.

The 100ma is still there @ 5575

there's an ATR @ 5577✅
I'll just watch the ATR✅

That push off data provided the perfect setup.

After the push I was waiting on 5590 as we had broke above 5570 with strong green volume. Stalled out @ 5582 area so I waited for a break below and retest of the ATR.

Trimmed @ last close. Left some runners. Will stop them out @ break even.




My entry. Break below & retest of the ATR with sellers stepping in = enter.

[lane121]

There's that pump off low volume again

[Blazed]

Originally Posted by Blazed

there's an ATR @ 5577✅
I'll just watch the ATR✅

That push off data provided the perfect setup.

After the push I was waiting on 5590 as we had broke above 5570 with strong green volume. Stalled out @ 5582 area so I waited for a break below and retest of the ATR.

Trimmed @ last close. Left some runners. Will stop them out @ break even.




My entry. Break below & retest of the ATR with sellers stepping in = enter.

All out @ break even. Now we're pushing off low volume.

Gains from trade $4.1k

Will wait for 5600 now and see what we do there.

Watching 5590 (will pass on this level as low volume pushes can smoke you) and wait for 5600.

Possible scalp @ 5600 on watch too if market gets strong.

TSLA & GOOG earnings after the bell.

[lane121]

Originally Posted by Blazed

there's an ATR @ 5577✅
I'll just watch the ATR✅

That push off data provided the perfect setup.

Think I may have missed the data. I only saw the existing home sales for today @ 10 est. Also, when we push up off low volume like the 11:00 est candle then get back to normality, would you generally stick with watching 5600 area (if we got back around the top) or go back to watching that 5590 area with the high OI? I would think stick with the 5600 since we've pumped up off low volume once today and other games could be played. It's probably a good idea to be extra cautious or even just trade another day.

Missed the move, so no trades today. I didn't like the low volume push either. Nothing wrong with a no trade day though lol. Gonna notate what I missed and I'll be back at it tomorrow!

[Blazed]

Originally Posted by lane121

Think I may have missed the data. I only saw the existing home sales for today @ 10 est. Also, when we push up off low volume like the 11:00 est candle then get back to normality, would you generally stick with watching 5600 area (if we got back around the top) or go back to watching that 5590 area with the high OI? I would think stick with the 5600 since we've pumped up off low volume once today and other games could be played. It's probably a good idea to be extra cautious or even just trade another day.

Missed the move, so no trades today. I didn't like the low volume push either. Nothing wrong with a no trade day though lol. Gonna notate what I missed and I'll be back at it tomorrow!

That was the data. Check the 10a - 10:05a candles. Pushed up above the ATR as data was approaching > rejected the ATR as data dropped @ 10a > then 10:05 rocketed up and broke above the ATR > then chopped for a few.




Only looking for a put entry because volume was showing sellers strong. So I waited for a break below and retest.

[lane121]

Thanks Blazed, that's a big help! I didn't realize the market was still reacting to the data when it was chopping too. I know you've said in the past that the market will return to normal after data/news, but I had just assumed it was more immediate, which is why I nearly got in puts at the 10:12/10:14 est retest

[Blazed]

Originally Posted by lane121

Thanks Blazed, that's a big help! I didn't realize the market was still reacting to the data when it was chopping too. I know you've said in the past that the market will return to normal after data/news, but I had just assumed it was more immediate, which is why I nearly got in puts at the 10:12/10:14 est retest

Yeah, I give it about 15 - 20 mins to see what it does after data.

But if data drops and it has a big swing, 20+ points I will jump in puts/calls immediately after data to catch the opposite side. But I don't stay in too long as it's just for a scalp.