· wrinkle brain plays · 3 min read

Wrinkle Brain Plays

Plays for Execution on May 12, 2023. In the style of Frank Drebin.

Plays for Execution on May 12, 2023. In the style of Frank Drebin.

Tickers of Interest - TL;DR

Gamma Max Cross

  • GOOG 06/16 115P for $2.50 or less
  • XPEV 06/16 10P for $0.80 or less
  • GEO 06/16 8P for $0.20 or less
  • EGO 06/16 11P for $0.35 or less
  • FLEX 06/16 22P for $0.30 or less

Delta Neutral Cross

  • BABA 06/16 90C for $2.60 or less
  • XOM 06/16 110C for $1.50 or less
  • KWEB 06/16 27P for $1.00 or less
  • OXY 06/16 60C for $2.45 or less
  • WBD 06/16 12.5C for $0.70 or less

Trading Thesis - Why These Crayons are More Delicious Than Grandma’s Secret Recipe 🖍️👵

Technical analysis and indicator-based trading are like trying to predict the future with a crystal ball 💎but using past price performances… because who needs fortune-tellers, am I right? 😉

This analysis dives into the world of option open interest like a deep-sea diver hunting for pearls! From there, the super-exciting portfolio-level greeks (Delta & Gamma, anyone?) are calculated📚. We then simulate greek changes at various prices, as if using a time machine, to pinpoint juicy price levels💸.

And guess what? Some tickers respond like a Jack-in-the-box to delta neutral and gamma max🎁✨. So, we’ve based our trading signals on that lively reaction! Cha-ching!💰

In the magical land of binomial option pricing, we calculate plays & target entry prices based on the expected gamma max or delta neutral reactions✨. The cherry on top? These plays harvest sweet gains from stock moves & increasing IV🍒.

Notes - Brain Buffers to Improve those Wrinkles 🧠🔧

  • Price moved past entry points? Hold your horses🐎! Times have changed.
  • With doubles, sell half & freeroll the rest, like a cunning fox🦊.
  • Gambling 1% of the capital on trades is my style💵. If I’m less sure, I’d risk less & dollar cost average in💰.
  • Trades are based on yesterday’s news📰. Keep that in mind, like a solid scrapbook.

FAQ - Because History Always Repeats Itself 🔄💬

  • Are these mostly puts? Are you a gay bear? 🌈🐻
    • Nope! It just means the companies might have gotten a little too full of themselves. Time for a reality check, folks!🔍😄
  • Are you entering all these plays? 🎭
    • Nay! Like a magician straight out of the WSB morning talks, I’m merely revealing opportunities to get your hands on more gain goodies. Pick your favorite plays and MAKE. IT. RAIN. 🌧️💵
  • A new play on the same ticker? What’s the deal? 🎫🔄
    • The new play shoves the old one aside like a sibling rivalry (sorry, old play!) It’s all based on updated info, so don’t chase the price🏃💨.
  • Where have all the crayons gone? 🖍️🤷
    • Just click those links above, and behold the crayon enlightenment! 🖍️🌟
  • Did you back-test this? 🧪📈
    • Yessiree! The results got us a moderate Sharpe Ratio of 1.76, and a 63% win rate with a 7% margin of error. Aren’t we fancy? 💃🍾
  • What’s the historical performance like? ⏳📊
    • Our realized Sharpe Ratio is 1.82 with a 66% win rate. There’s a 95% chance the expected win rate will fall between 62% and 73%. We’ve got the stats to back it up! (As of 2023-04-30)📈💼
Share:
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