· wrinkle brain plays · 3 min read

Wrinkle Brain Plays

Plays for Execution on April 4, 2023. In the style of Scooby Doo.

Plays for Execution on April 4, 2023. In the style of Scooby Doo.

Tickers of Interest - TL;DR

Gamma Max Cross

  • SMH 04/21 260P for $4.85 or less
  • MMM 04/21 104P for $1.90 or less
  • ETSY 04/21 108P for $3.45 or less
  • TECK 04/21 43P for $1.30 or less
  • STNE 04/21 9P for $0.25 or less

Delta Neutral Cross

  • ARKK 04/21 39P for $1.10 or less
  • COIN 04/21 64C for $4.95 or less
  • UAL 04/21 43P for $1.35 or less
  • NCLH 04/21 13P for $0.40 or less
  • QCOM 04/21 125C for $2.80 or less

Trading Thesis - Why These Crayons are Zoinks-delicious! 🌈

Like Scooby and the gang solving mysteries, technical analysis clues us in on past prices 💰 to predict those groovy levels today. But guess what, gang? We’re adding a twist! 🌀

Our analysis is based on option open interest, which helps us calculate those ever-elusive greeks like Delta and Gamma. Once we get our paws 🐾 on ‘em, we can simulate price points and find the sweet spot where gamma’s highest and delta is chillin’ at 0. 🎯

Some tickers make waves 🌊 off of delta neutral, gamma max, or both! It’s these reactions that we use to whip up our trading signals.

Givin’ ya the 411 on plays and target entry prices, we use a binomial option pricing model that reflects the expected size and duration from gamma max or delta neutral. A lot of these plays are groovy baby, just like those Scooby Snacks! 🍪 The best plays benefit from the directional move and a dash of IV. 😎

Notes - Because Knowledge is Power 🧠💥

  • If the price scoots by the entry price, be cautious! Something’s fishy 🐟 between play generation and market open.
  • Look to sell half your position on a double, then freeroll the rest at your discretion. Like, wow! 😃
  • I like to toss 1% of my total capital into trades, but if my conviction’s lower, I throw in 0.5% or 0.25% instead. DCA, baby! 💸
  • Remember, trades are 📝 before market open, so keep your peepers peeled for changes! 👀

FAQ - Howdy, Mystery Solver! 🕵️‍♂️

  • These plays are mostly puts. Am I a gay bear? 🐻
    • Nope! Some companies just had a wild roller coaster ride 🎢, and it’s time for some good ol’ mean-reversion.
  • Am I entering all these plays?
    • Nah. These happen to be from my grab-bag of tricks 🃏 for days when WSB morning talks lack plays with probable edges. So follow the clues, pick your faves, and enjoy that gain porn. 💪
  • Saw a new play on the same ticker before. What’s up?
    • The new play’s in town! 🌟 The old one’s probably expired, so don’t chase it like a runaway ghost. 👻 Remember, fresh data means fresh plays.
  • Where are the crayons? I see words, not treats. 🧐
    • Click the links, Scoob! 😉
  • Have I tested this mystery machine?
    • Yeah! We’ve got a moderately rockin’ Sharpe Ratio (1.76) and a 63% win rate (7% wiggle room). 🤘
  • What’s the historical performance, Scooby-Doo?
    • A rad Sharpe Ratio of 1.85 and a groovy 68% win rate! There’s a 95% chance our expected win rate dances between 63% and 75% (Stats as of 2023-03-31). Let’s boogie! 🕺
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