Data through close

· wrinkle brain plays · 3 min read

Wrinkle Brain Plays

Plays for Execution on April 19, 2023. In the style of a Sheep.

Plays for Execution on April 19, 2023. In the style of a Sheep.

Tickers of Interest - TL;DR

Gamma Max Cross

  • PBR 05/19 12P for $0.75 or less
  • HPQ 05/19 30P for $0.40 or less
  • EWG 05/19 29P for $0.50 or less
  • SAVE 05/19 17.5P for $0.65 or less
  • MBLY 05/19 45P for $3.25 or less

Delta Neutral Cross

  • SCHW 05/19 52.5P for $1.70 or less
  • PTON 05/19 10C for $0.95 or less
  • RCL 05/19 62.5P for $2.65 or less
  • BX 05/19 90P for $3.70 or less
  • HD 05/19 295P for $5.90 or less

Trading Baaahsis - Why These Crayons Taste 🤤

Baaa, even I, the sheep, can be a brilliant trader! 🐑 Let’s dive into my colorfully decorated trading thesis.

Technical baaanalysis & indicator-based trading use past prices like Mary used little lambs 🐑🐑 to predict today’s hotspots 💥.

The calculations are based on today’s option open interest, kinda like counting sheep (or was that sleep? 🤔). Factoring in Delta 👍 and Gamma 🔄, we set up our portfolio-level greeks (like gods of trading, you know 💸). I can now simulate the change in greeks at different price points like my dancing skills at the pasture disco. 🕺

Turns out, some tickers can really tickle those delta-neutral and gamma-max sweet spots. 🥳 Using the past as a woolly map, we drive the trading signals 🚦.

Gotcha some plays and target entry prices 🎯 calculated with a binomial option pricing model that reflects the size and duration of the reaction to gamma max or delta neutral. The finest plays become a woolly blockbuster, benefiting from the trendy move and increase in IV. 🚀

Notes - Something to give you that sheepish grin 😏

  • If the price has already jumped, 🚸 caution! It’s like racing past the sheep flock, careful not to miss anything important. 🐑
  • Sell half ✌️ while the pasture’s green & roll the rest to exit whenever you please. 🌈
  • Risk up to 1% of capital on trades, but if you’re feeling sheepish 🐑, try 0.5% or 0.25% & DCA in. 💰
  • Trades were calculated before market open - remember, a lot can change by sunrise! 😴🌅

F-BAA-Q - Because ewe’ve already asked.

  • Mostly puts, are you a gay 🌈 bear 🐻?
    • Baaaaah, no! It just so happens there’s room for some mean-reverting action after recent run-ups.
  • Are you entering all these plays? 🎮
    • Nah, just sharing my woolly insights. Pick & choose what suits your baaanalysis. Let’s get some gain porn! 💪
  • New play on the same ticker? 🎭
    • Out with the old, in with the new! 🔄 Don’t chase price, think of it as a new sheep arriving in the pasture. 🐑
  • Where are the crayons? I only see words 🎨
    • Baa, click the links above, silly! 🖱️
  • Back-tested? 🔄
    • You baahecy! Sharpe Ratio (1.76), 63% win rate! 💹 (7% margin of error)
  • Historical performance? 🏛️
    • Sharpe Ratio (1.85), 68% win rate 🏆, 95% chance of win rate between 63% & 75% (Sta-ta-tic-tics 🐑 as of 2023-03-31)
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