Wrinkle Brain Plays

Tickers of Interest - TL;DR

Gamma Max Cross

TLRY 06/16 2.5P for $0.25 or less
DDOG 06/16 75P for $5.15 or less
EGO 06/16 12P for $0.70 or less
BLDR 06/16 105P for $3.90 or less
NUGT 06/16 50P for $4.25 or less

Delta Neutral Cross

QQQ 06/16 318C for $9.25 or less
PLTR 06/16 8C for $0.40 or less
JPM 06/16 135C for $4.55 or less
DIS 06/16 100C for $3.40 or less
EQT 06/16 31C for $1.90 or less

Trading Thesis 🧐 - Why These Crayons Are More Delectable Than Morticia’s Potions 🖍️🍸

Astute investors 👨🏻‍💼💀 often rely on past price performance like soothsayers searching for portents of doom, all to predict the mysteriously alluring price levels of the present 🌙.

This bewitching analysis 🔮 marries current option open interest to the hauntingly tempting portfolio-level greeks—Delta, Gamma, and their arcane brethren. Once the greeks have assembled like Fester’s juggling knives 🔪, I can glimpse into the shadows and see how they change with different price points. From there, we hunt like Uncle Itt for the juiciest price levels where the gamma is highest and the delta is as close to 0 as possible 🕷️.

For certain tickers, the underlying price reacts with the intensity of Lurch playing the harpsichord 🎹 off delta neutral, gamma max, or sometimes both.

The reactions at these thrilling price levels in the past now serve as guiding spirits for our trading signals 🪄.

The deviously delightful plays and tempting target entry prices are conjured using a binomial option pricing model that echoes the size and duration of the reaction from gamma max or delta neutral 🎭. These plays often yield profit from roller-coaster-like stock movements 🎢. The most tantalizing ones catch the wind from directional moves and an uptick in IV 🦇.

Notes 📜- Cryptic Clues for Fun and Frolic with your Investments

If the price quickly vanished past the entry price, beware! An otherworldly force is at play between when these mischievous trades were generated and when the market swung open its doors 🚪👻.
Sell half your position upon doubling your delight, and devilishly freeroll the rest, plotting an exit in true Addams-style 🏰💨.
My risks dare not exceed 1% of my total capital on these dark trades; if my conviction wavers, like Cousin Itt fearing a hairdresser, I only allocate 0.5% or 0.25% of my capital, and dollar-cost average in 💸💇.
These trades were divined before the market awoke, and are based on the whispers of yesterday’s ghosts. Keep that in mind when patiently lurking for the perfect entry 👂🌘.

FAQ - Questions from the Curious and the Captivated 🦉

Most of your plays are puts 👀 Are you a gay bear? 🐻
- No, no, my darlings! Quite the contrary. It simply so happens that the companies have recently soared like Thing with a pair of bat wings🦸‍♀️. Which in our humble Addams view, means they are perhaps a touch overextended. These trades are primarily forms of mean-reversion toward or away from important price levels 🌟.
Are you entering all these plays? 🎭
- Fiddlesticks, of course not! Morticia whispers that there has been a scarcity of plays in recent moonlit evenings. Thus, I’ve expanded my bag of gory gadgets 🔦 to unveil more plays with a promising edge. Visit this curated list, select the ghoulish plays that charm your morbid heart, and take your gains to the haunted house 🎠💞.
You mentioned a new play on the same ticker in the past? 🎟️
- Allow the new play to ominously eclipse the old. The earlier game is now most likely invalidated, like a vampire caught in the sunlight ☀️🧛. If you haven’t joined the party, don’t chase the price. Each new day unveils fresh secrets and the newer play divulges those whispers, whilst the older play does not 😈🔮.
Where are the crayons? I only see words 🖍️🧪
- Unveil the mysteries by clicking the links above, my intrepid investigators 🔼.
Have you back-tested this devilish endeavor? 🧪
- Indeed, we Addams are thorough. The results reveal a tantalizing Sharpe Ratio (1.76) and a bewitching 63% win rate for trades (7% margin of error) 🏆.
🌌Historical performance? Tell me more!
- The realized Sharpe Ratio sits temptingly at 1.82 with a 66% win rate. So far, there is a spine-chilling 95% probability that the expected win rate will dance between 62% and 73% 👯‍♀️. (Stats as of the eerie 2023-04-30 📅)

Use of HalfOnADouble's research is at your own risk. In no event should HalfOnADouble or any affiliated party be liable for any direct or indirect trading losses caused by any information in this report. You further agree to conduct your own research and due diligence, consult your own financial, legal, and tax advisors before making any investment decision concerning the transaction of any securities covered herein. You should assume that as of the publication date of any content, HalfOnADouble (possibly along with or through our members, partners, affiliates, employees, and/or consultants) along with our clients and/or investors has a position in all stocks (and/or options of the stock) covered herein, and therefore stands to realize significant gains in the event that the price of any stock covered herein moves as predicted. Following the publication of any report or letter, we intend to continue transacting in the securities covered herein, and we may be long, short, or neutral at any time hereafter regardless of our initial recommendation, conclusions, or opinions. This is not an offer to sell or a solicitation of an offer to buy any security, nor shall any security be offered or sold to any person, in any jurisdiction in which such offer would be unlawful under the securities laws of such jurisdiction. HalfOnADouble is not registered as an investment advisor in the United States or have similar registration in any other jurisdiction. To the best of our ability and belief, all information contained herein is accurate and reliable, and has been obtained from public sources we believe to be accurate and reliable, and who are not insiders or connected persons of the stock covered herein or who may otherwise owe any fiduciary duty or duty of confidentiality to the issuer. However, such information is presented "as is," without warranty of any kind - whether express or implied. HalfOnADouble makes no representation, express or implied, as to the accuracy, timeliness, or completeness of any such information or with regard to the results to be obtained from its use. All expressions of opinion are subject to change without notice, and HalfOnADouble does not undertake to update or supplement this report or any of the information contained herein.