Wrinkle Brain Plays

Tickers of Interest - TL;DR

Gamma Max Cross

• BABA 04/21 102P for $3.80 or less
• GOOG 04/21 104P for $2.20 or less
• DASH 04/21 63P for $2.35 or less
• HD 04/21 290P for $3.65 or less
• Z 04/21 44P for $1.25 or less

Delta Neutral Cross

• UNG 04/21 6.5P for $0.30 or less
• DVN 04/21 50P for $1.20 or less
• DIA 04/21 333P for $4.05 or less
• DOCU 04/21 58P for $2.45 or less
• MRNA 04/21 150P for $5.15 or less

🧛 Trading Scipfăi - Why These Crayons Are More Delicious Than a Vintage Blood Vintage 🍷

Technical analysis and indicator-based trading are about as predictable as a werewolf during a full moon—counting on past price performance to anticipate crucial price levels today. 🌕

My dark analysis is drawn from the current option open interest. With that, I calculate greek riddles for your portfolio—primarily Delta and Gamma. 👻 And once we’ve got those greeks sorted, I can now conjure up how they change at different price points. From there, I find the price points where gamma is on fire 🔥 and delta is close to… well, zero.

Some tickers react like a bat out of hell from delta neutral, gamma max, and sometimes both. 🦇

The trading signals are driven by how prices have danced around these levels in the past, like a spirited polka with the Grim Reaper himself. 💃

The plays and target entry prices I’ve summoned are calculated using a binomial option pricing model that reflects the expected size and duration of the reaction from gamma max or delta neutral. A graveyard of these plays profit 📈 from underlying moves in the stock. The best plays benefit from both the directional move and the increase in IV (Intravenous Volatility 😜).

📝 Notes - Not Your Usual Spells

• If the price has already defied gravity and risen past the entry price, beware! 🧹⚠️ Something changed between the time these plays were generated (like a vampire fading to a bat) and market open.
• Sell half your position on a double, and freeroll the rest to exit at your own risk. 💸
• I usually wager up to 1% of my total, immortal capital on trades. But if my faith is weak, I’ll only risk 0.5% or even 0.25% and dollar cost average in, like a vampire creeping ever closer to his prey. 🩸
• These trades were calculated just before the market lurched open with a howl, so keep in mind they’re based on lore from yesterday. 🌃 Bid farewell to old legends when deciding to enter well after the fact. New price movements might stake the original thesis through the heart. 💔

❓ F.A.Q. - To Avoid Further Fangquiry 🧛‍♂️

• Are these plays mostly puts? Are you a gay bear? 🐻
  • No, my friend. It’s just that these companies have recently moved like lightning ⚡, which implies they could be overextended. These trades simply seek some form of mean-reversion to or from an essential price level.
• Are you entering all these plays?
  • Absolutely not, fellow creature of the night! I’ve merely offered additional plays with probable edges to help guide apes 🦍 into more lucrative dark paths. Pick your favorite from this handpicked list and indulge in the gains!
• What about that new play for a ticker from the past?
  • Replace old plays with new ones; the former are now invalid relics, like my once-beating heart. 💔😉 Don’t chase prices—remember, each new day produces fresh data that can alter once solid predictions.
• Crayons? Those are my snack! Where are they?
  • Ah, fiends, click the links above. 👆
• Have you back-tested your sorcery?
  • Indeed, I have. Results reveal a moderately bewitching Sharpe Ratio (1.76), with a haunting 63% win rate on trades (and a 7% margin of error). 🔮
• What is the performance that echoes down the corridors of time?
  • With a realized Sharpe Ratio of 1.85 and a 68% win rate, there’s a 95% chance the expected win rate will be between 63% and 75%, per my foreboding crystal ball. (Stats as of 2023-03-31)