· wrinkle brain plays · 3 min read

Wrinkle Brain Plays

Plays for Execution on May 15, 2023. In the style of someone who won a beauty contest years ago and still wears the banner everywhere they go.

Plays for Execution on May 15, 2023. In the style of someone who won a beauty contest years ago and still wears the banner everywhere they go.

Tickers of Interest - TL;DR

Gamma Max Cross

  • SOXL 06/16 13P for $0.80 or less
  • EWJ 06/16 60P for $0.90 or less
  • ON 06/16 80P for $3.50 or less
  • TH 06/16 15P for $0.75 or less
  • NVCR 06/16 75P for $6.35 or less

Delta Neutral Cross

  • PBR 06/16 11P for $0.35 or less
  • MANU 06/16 19C for $2.30 or less
  • CHWY 06/16 32.5P for $1.50 or less
  • COOP 06/16 42.5P for $1.00 or less
  • WDAY 06/16 180P for $6.95 or less

Trading Thee-sis 💅 - Why These Crayons Are the Tastiest 🖍️🤤

Darlings, back when I won Miss Mathlete, I discovered this fabulous way to analyze stocks. Technical analysis and indicator-based trading are so yesterday. They use past performance to predict today’s prices, like trying to find the perfect lipstick 💄 by looking at last season’s colors.

What I do is spice things up 🔥! I start with the current option open interest and whizz it into portfolio-level greeks (Delta & Gamma are so in vogue right now). Then, I simulate the change in greeks at different price points to find the high-fashion levels, where gamma is at its peak and delta is barely noticeable. Simply flawless!

Now, some tickers are extra sassy and react strong off delta-neutral or gamma-max, others strut off both 💃. It’s these price reactions in the past that inspire my trading signals, darling!

The plays and target entry prices I serve are calculated using a binomial option pricing model 📊 to add that extra “oomph” to the gains💰. The best plays enjoy a double rise—directional moves and increases in IV.

Notes - Tips for an En Vogue Trader 📝

  • Listen up, sweetie: if the price moved past the entry price, be careful. Things may have changed since these plays sashayed onto the scene.
  • Sell half of your position on a double and let the rest make its grand exit 💼.
  • I casually risk 1% of my total capital on trades 💁‍♀️. Lower conviction? Oh, darling, just allocate 0.5% or even 0.25% and strut that dollar-cost average!
  • The trades were calculated pre-market open so they’re so yesterday. Keep an eye on today’s trends before making a grand entrance too late.

FAQ - Inquiring Minds Want to Know 🕵️‍♂️

  • Mostly puts, are you a bear?🐻
    • Darling, no! 💁 Some stocks are just a little too fluffed up lately, so these plays are all about the mean reversion—think liposuction! 💉
  • Are you playing all the trades yourself? 🎲
    • No, sweetie. I’m presenting a fab menu of plays for you to choose from! Pick the ones that make your heart sing and rake in the gainz (and fame!) 🌟
  • You mentioned a new play on the same ticker. What gives? 🔄
    • Ditch the old one, darling! Jumping into the new play is like updating your wardrobe for the new season 🛍️—you deserve the latest and greatest.
  • Um, you mentioned colored pencils, but all I see are words? 🖍️
    • Click the links dearest, click the links! 🔗
  • Have you tried this before? 🧐
    • Oh, absolutely 😘! Results are moderately sharp (1.76 Sharpe Ratio) with a fab 63% win rate (± 7%).
  • How’s the historical performance, darling?📈
    • Realized Sharpe Ratio stands at 1.82, and a stellar 66% win rate 💅. Most likely, between 62% and 73% win rate (95% confidence) is what we’re looking at, dah-ling! (Stats as of 2023-04-30)
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