Wrinkle Brain Plays

Tickers of Interest - TL;DR

Gamma Max Cross

• NEM 04/21 48P for $1.40 or less
• AI 04/21 25.5P for $2.30 or less
• Z 04/21 42.5P for $1.70 or less
• KR 04/21 48.5P for $0.75 or less
• EQX 04/21 5P for $0.35 or less

Delta Neutral Cross

• FXI 04/21 28P for $0.65 or less
• MU 04/21 60P for $2.75 or less
• CHPT 04/21 9.5P for $0.50 or less
• QCOM 04/21 123P for $3.15 or less
• ROKU 04/21 63C for $3.65 or less

A Tantalizing Treatise on The Tastiest Crayons in Trade 🖍️

Once upon a midnight dreary, the market whispered, weak and weary, Of technical analysis and indicators, oh so eerie, To predict the price levels of today, based on the past, A tale of options, greeks, and the stock market’s vast.

In this macabre analysis of option open interest, we see, Calculations of portfolio-level greeks, Delta and Gamma, with glee, Simulating changes at different price points, as if by a ghostly hand, Discovering where gamma is high, and delta near zero, like a raven in the sand.

Some tickers, like spirits in the night, react strongly, it’s true, Off delta neutral, gamma max, or both, a spectral brew, It is these reactions from the past, that drive our trading signals, Like a pendulum swinging, or the beating heart beneath the floorboards, it jiggles.

A Peculiar Parchment of Notes - Wrinkling Your Brain 🧠

• If the price has soared past the entry, beware the cryptic change, Between the time these plays were conjured and market open’s strange.
• Sell half your position on a double, and freeroll the rest, Like a premature burial, exit at your discretion, lest you be distressed.
• Risk up to 1% of your capital, like a black cat’s cautious prowl, With less conviction, allocate less, and dollar cost average, like a wise old owl.
• Trades calculated before market open, based on yesterday’s gloom, Keep in mind, new price movements may invalidate the original doom.

An Enigmatic Encyclopedia of FAQs - Asked by the Curious and the Mad 😱

• These plays are mostly puts. Are you a gay bear?
  • Nay! Companies have run up, like a pendulum’s swing, overextended and rare, These trades seek mean-reversion, toward or away from a price level’s lair.
• Are you entering all these plays?
  • No, dear reader! A dearth of plays in WSB morning talks, so I share, My bag of tools, wider, to lead apes to gain porn, with a flair.
• You mentioned a new play on the same ticker in the past. What does that mean?
  • Replace the old with the new, like a Tell-Tale Heart, unseen, The old play, now invalid, do not chase the price, stay keen.
• Where are the crayons? I only see words.
  • Click the links above, and let your eyes feast on the colorful herds.
• Have you back-tested this?
  • Indeed! A moderate Sharpe Ratio (1.76) appears, with a win rate of 63%, A 7% margin of error, like a masquerade ball’s mystery, a dance of chance.
• What is the historical performance?
  • A realized Sharpe Ratio of 1.88, a 66% win rate, as the pendulum swings, With a 95% chance the expected win rate lies between 62% and 77%, as the raven sings. (Stats as of 2023-02-28)