Well, nothing like a triple reversal in 2 ½ hours yesterday with range … seriously
“effed up”, and you can lay the blame on ODTE options … call and put volume
exploding in these daily expirations, and the gamma squeezes emanating from
these are epic … truly mind blowing … in the days / weeks / months ahead, it only
gets worse, so expect to see madness like yesterday play out more and more and
become “normal” in “Stock Bellies”.
The origins of the version 2 trading algorithm has its roots in options … and from
that eventually came the algorithm for regular trading … scanning the internet,
particularly Youtube, the most popular 0DTE options strategies will get your
account carried out “toes up” … you follow what most of these Chuckleheads tell
you to do, and it’s not a question of “IF”, it’s only a question of “WHEN” you get
destroyed … seriously messed up risk / reward ratios … in the updated options
manual coming here shortly, I go into everything you need to know to be a
successful options trader and generate a stable, CONSISTENT income … risk
most definitely MINIMIZED, and reward equally compensated … it’s coming so
stay tuned.
For the uninitiated, it’s all about the gamma squeezes into an expiration only
minutes or hours away, and it happens every trading day … it partially explains
the preponderance of straight up or straight down moves lasting hours … the
market starts moving, and those caught on the wrong side of option gamma only
got one choice and one choice ONLY … if you’re short it’s buy the underlying
instrument, and if you’re long and wrong it’s sell the underlying instrument … as
that picks up momentum, and the pain of a wrong trade mounts, more and more
people panic and add gas to the fire that torches their position … it’s not that they
want to buy or sell the underlying, it’s the fact they got to if they want to save
their accounts … and the volume flow from these are becoming tsunamis in their
own right … the market eventually runs out of buying or selling fuel and the
debacle ends … but another one is just being set up, cuz now you got a whole
new set of participants who are gonna get caught the other way, and here we go
again, only this time it’s the other direction … it all leads to panic up, panic down,
rinse and repeat … and the bread & circuses casino loves it!
Into the New York afternoon, and so far it’s a pretty nondescript trading day as
measured by the DOW30 & SP500 … NDX100 has an approximate 290 index point
range, so it’s the outlier today … at times moving faster than a speeding bullet
aimed for your head, the stop runs both up and down are very fast … today sees a
straight 6 hour bloodbath to the downside starting around 5 AM EST, and if you’re
short the 0DTE put credit spreads out-of-the-money [OTM], you’re toast on a stick,
cuz even if the index rallies some, your put spread won’t … just insane how
people trade this shit and expect nice things to go their way when they engage
in a suicidal strategy.
About an hour and a half to the close, and to say the least it’s been a rather
strange day … my guess is, going forward they’re all gonna be strange and there
won’t be any kind of “normal” day you can point to … only one decent algorithm
buy signal today in the NDX100 … PAMM UP SLIGHTLY … there were other buy
signals, but they ALL came with “divergence” to some of the algorithm
parameters, thus skewing the metrics of a trade into an area I’m not comfortable
with … that area is ‘coin flip” territory, and who needs that? … so far, no big
reversals to speak of today, but who knows into the last 90 minutes as the 0DTE
traders get very skittish with no time left … and unless I’m already in some
position that’s racing in my profit direction, I don’t want any part of this.
So far, I like trading the NDX100 on the VPS at Coinexx … haven’t had any
problems at all … “please fellas, let’s keep it that way!” … still looking for that
decent up day, which will come, but so far it’s been all downside action and bat
shit crazy [BSC] reversals that move at the speed of light … onto tomorrow.
… OUTTA HERE … “The future’s so bright I need 2 pairs of sunglasses 😎😎,
and my own Brinks armored truck” 💓!! … Onward & Upward!!
-vegas
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