Wrinkle Brain Plays

Tickers of Interest - TL;DR

Gamma Max Cross

• LABU 06/16 6P for $0.60 or less
• WPM 06/16 50P for $1.70 or less
• UVIX 06/16 12P for $2.15 or less
• SDS 06/16 40P for $1.25 or less
• ASND 06/16 90P for $3.20 or less

Delta Neutral Cross

• XOM 06/16 110C for $3.10 or less
• XBI 06/16 83P for $2.90 or less
• DAL 06/16 33P for $0.85 or less
• SBUX 06/16 105C for $2.50 or less
• ABNB 06/16 115P for $5.90 or less

Trading Thesis - Why These Crayons Are Groovier Than A ’60s Dance Party 🕺✨🎉

Technical analysis and indicator-based shenanigans are all about using the ghosts of stock prices past to predict their present parties. 🌈👻

We’re looking at the oh-so-hip option open interest, baby. Using that, we can find the scene with the grooviest portfolio-level greeks – specifically Delta and Gamma. Once we’ve got those, it’s time to do the time warp and simulate those greeks at different price point gig locations. 💃🎶💹

For some groovy tickers, the underlying prices react like a hippie at a Woodstock love-in off of delta neutral, gamma max, or sometimes both.

We’re using past reactions to these mind-blowing levels to navigate the crazy trade signals journey. Far out, man! ☮️🚀

The plays and totally fab target entry prices are calculated with a rockin’ binomial option pricing model. This reflects the expected size and duration of the reaction from gamma max or delta neutral. Loads of these plays are profitable by the moves in stock. The grooviest plays benefit from the directional move AND the increase in IV. 🎯📈

Notes - A Spoonful of Wisdom to Zap Your Brain 🍄🧠

• If the price has split like an Austin Powers double, beware! Something has gone all wibbly-wobbly between these plays’ generation and market open. 😱💔
• Sell half your position on a double, baby, and freeroll the rest to exit at your discretion. 😎💰
• I risk up to a groovy 1% of my total capital on trades I take. If my mojo’s not feelin’ it, I only allocate 0.5% or even 0.25% of my capital and dollar cost average in. 💸🎲
• These trades were calculated before the market opened, so they’re based on yesterday’s juicy gossip. Bear that in mind when deciding to crash later into the party. New dances on the floor might invalidate our fabulicious thesis. 💥👣

FAQ - Inquiring minds want to know 😏🔮

• These plays are mostly puts. Are you a gay bear? 🌈🐻
  • No, darling. It just so happens that the companies have been groovy enough to have a recent run-up which implies they’re overextended. These trades are simply boogying back either toward or away from an important price level. 📉
• Are you entering all these plays? 🤔
  • No, man. There have been slim pickings in the WSB morning talks, so I cracked open my psychedelic toolbox to help point out more plays with edge. Check out this curated lineup of plays, choose the ones that flip your switch, and get yourself some sweet gain porn. 😍🍿
• You mentioned a new play on the same ticker in the past. What does that mean? 🔄
  • The new play should take the stage instead of the old one. The old play is probably out of tune now. If you haven’t joined in, don’t chase the melody. Remember that the fresher play’s got the latest moves. 🕺
• Where are the crayons? I only see words. 🖍️🤷
  • Click the trippy links above, my friend! 🔗✌️
• Have you back-tested this groovy gig? 🧪
  • Yeah, baby! Results show a moderately cool Sharpe Ratio (1.76) with a 63% win rate on this wild ride (with a 7% margin of error). 🌟
• What’s the historical performance been like? 📅
  • The realized Sharpe Ratio’s a smooth 1.82 with a wicked 66% win rate. Based on the trade performance so far, there’s a 95% chance the expected win rate will be between 62% and 73%. (Stats as of 2023-04-30) 🏆🎊