While developing the Optionflow indicator I’ll be posting examples of some setups I detected and most of them mentioned on Twitter. Not always at the exact time I place a trade, but even when I called the FB and TSLA setups today, there was ample opportunity to get into the trade on small subsequent pullbacks.
Use these posts as examples of high probability setups to trade weekly options.
That was the first opportunity to get into a trade. Call buying subsequently picked up even more, and the indicator signaled an entry for a CD leg higher; 2nd opportunity.
At that time we saw an XABCD pattern appear, where the 113%XA was perfectly inline with the PRZ of the AB=CD. Perfect place to lock in profits! and an opportunity for a Put trade. After an entry for a CD leg down showed up, right after the reversal at the PRZ. Again the 113%XA and the AB=CD PRZ of this pattern were inline around 93.80. FB bounced of this a couple of times before the end of the day.
Similar situation with TSLA: Bullish PRZ confirmed by Bullish optionflow resulted in a trade exactly to the PRZ, where it reversed for the rest of the day.
SPY opened up below a Bullish PRZ, and therefore not favorable for a bullish trade. Even though the indicator alerted on an entry for a possible CD leg up with target at 197.50. It reached it, but not able to get over it, and it never cleared the Bullish PRZ it opened up below.
In the afternoon an entry for a CD leg down, resulted in the day’s low just 10 cents shy of the 161.8%XA target.