· wrinkle brain plays · 3 min read

Wrinkle Brain Plays

Plays for Execution on April 10, 2023. In the style of Edna Mode.

Plays for Execution on April 10, 2023. In the style of Edna Mode.

Tickers of Interest - TL;DR

Gamma Max Cross

  • T 05/19 19P for $0.35 or less
  • HOOD 05/19 10P for $0.70 or less
  • KGC 05/19 5P for $0.25 or less
  • WBA 05/19 35P for $0.85 or less
  • SOXS 05/19 18P for $1.65 or less

Delta Neutral Cross

  • SNAP 05/19 11C for $0.90 or less
  • AI 05/19 25C for $2.00 or less
  • ROKU 05/19 65C for $5.25 or less
  • AMAT 05/19 115C for $5.90 or less
  • AR 05/19 23P for $1.35 or less

Trading Thesis - Why These Crayons Have More Flavor Than Your Wardrobe 🎨

Darlings, technical analysis and indicator-based trading are like fashion trends - they use past looks to predict today’s hot styles. 💁‍♀️

This fabulous analysis is inspired by the latest option open interest. With that option open interest, it calculates portfolio-level greeks—especially Delta and Gamma, darling. Most importantly, once we have these greeks, we can simulate their changes at different price points, like changing outfits for different occasions. 💃

For some tickers, the underlying price reacts as dramatically as a superhero’s cape caught in a jet turbine. 🚀

It’s the reaction off of these price levels in the past that creates trading signals, as fabulous as a perfectly tailored suit. 🕴️

Notes - A Touch of Sophistication 🎩

  • If the price has moved past the entry price, be cautious, darling. Something changed, like last season’s fashion trends.
  • Sell half your position on a double, and freeroll the rest to exit as you please, like a graceful exit from a runway. 💅
  • Risk up to 1% of your total capital on any trades, but if your conviction is lower, only allocate 0.5% or 0.25%, like accessorizing with discretion. 📿
  • Trades were calculated before the market opened, so they’re based on yesterday’s news, darling. Keep that in mind when deciding to enter late. 📰

FAQ - Answers as Timeless as the Little Black Dress 👗

  • These plays are mostly puts. Are you a gay bear? 🐻
    • No, darling. It’s just that these companies have had a recent run-up, like an over-the-top fashion trend. These trades are a return to classic style.
  • Are you entering all these plays? 🎭
    • No, sweetheart. I’m just providing a selection of fashionable plays for you to choose from, like a personal stylist. Pick your favorites and strut your stuff. 💃
  • You mentioned a new play on the same ticker in the past. What does that mean? 🔄
    • The new play replaces the old one, darling. The old play is passé, so don’t chase the price. Remember, the newer play reflects the latest trends, while the older one does not. 🗓️
  • Where are the crayons? I only see words. 🖍️
    • Click the links above, darling. They’re as colorful as a spring collection.
  • Have you back-tested this? 🧪
    • Yes, darling. Results show a moderate Sharpe Ratio (1.76), with a 63% chance of winning trades (±7% margin of error). 📈
  • What is the historical performance? 📜
    • The realized Sharpe Ratio is 1.85 with a 68% win rate. Based on trade performance so far, there’s a 95% chance the expected win rate will be between 63% and 75%. (Stats as of 2023-03-31) 📊
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