· wrinkle brain plays · 3 min read

Wrinkle Brain Plays

Plays for Execution on May 9, 2023. In the style of a Pirate.

Plays for Execution on May 9, 2023. In the style of a Pirate.

Tickers of Interest - TL;DR

Gamma Max Cross

  • DKNG 06/16 22.5P for $0.80 or less
  • OPEN 06/16 2P for $0.20 or less
  • GRAB 06/16 3P for $0.10 or less
  • HSBC 06/16 37P for $0.65 or less
  • JCI 06/16 62.5P for $1.55 or less

Delta Neutral Cross

  • ARKK 06/16 37P for $1.55 or less
  • DAL 06/16 34P for $1.10 or less
  • MRVL 06/16 40P for $2.00 or less
  • RTX 06/16 100C for $0.70 or less
  • IEF 06/16 100C for $0.95 or less

Arrrr! Nibblin’ on Crayons - Why Me Crew Loves ‘em More 😋

Ahoy, me hearties! The ancient arts of chartin’ booty and wavvvin’ that magic wand be what make some pirates swim in riches. Sharpen yer spyglass, ‘tis time for a fresh dose o’ learnin’! 🏴‍☠️

Me thesis be built on the open seas of options, navigatin’ the uncharted waters of Delta and Gamma greeks like a seasoned sailor. Shiver me timbers, once these be set right, we can set sail and find the treasure trove of highest gamma and zero delta, arr! 🦜

Sometimes, me ship reacts mightily to the winds of delta neutrality and gamma max, or even both if we be challengin’ Davy Jones himself! Ye see, it’s the past reactions at these price points that make the seas rumble with sweet sweet profit. 🌊

Now, the plays and where to cast anchor be done using a fine, ol’ treasure map called the binomial option pricing model. The tastiest crayons be found usin’ this here map, me buckos. 🧭

Spyglass Notes - To Make Yer Head Spin

  • If the gold’s moved past our anchor, be careful, mateys! Somethin’ changed out there in the deep blue yonder.
  • Take half yer doubloons after tyin’ down a double and let the rest sail free.
  • I risk a shiny gold coin or two on me trades. If me gut ain’t feelin’ it, I risk fewer and spread ‘em out.
  • The trades be plott’d afore market opens, so keep the past in mind as ye chart yer course.

YarrrrrnS - Answerin’ to the Inquisitive Parrots

  • Mostly puts, ye say? Be ye a gay bear?
    • Nay! ‘tis the companies we eye that look overextended. We be findin’ treasure in mean-reversion towards or away from key prices, arr!
  • Be ye enterin’ all these trades, matey?
    • Nah, ‘tis just to give me hearties more gain porn, yarrr! Pick the ones ye fancy and fill yer boots.
  • What if me sees another play on the same ingot?
    • The new plunder replaces the old. Let the old one rest in a watery grave, lest yer fortune dry up.
  • Where be them crayons? I seek no parchment but illustrate loot!
    • Click the links up there, me hearty. 🔗
  • Back-tested, ye say?
    • Aye. The sharpest o’ cutlasses slice with 1.76 Sharpe Ratio, a 63% win rate (7% margin of error).
  • Chartin’ treasure throughout the ages?
    • Thar be a realiz’d Sharpe Ratio of 1.82 — winnin’ 66% battles, with each win be ‘tween 62% and 73% likely. Arr! (Stats from the year 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.
Back to Blog