Trump give Iran breathing room. Market Rally! $6.5T in Options Expire Today. How will you profit? Trade Ideas for Fri Jun 20
What's stopping you from making 500-1000%? Stop overtrading, and make more in less time. Read on to learn how I do it.
Good morning. Today is Triple witching day on $6.5T in options. That could bring some major voltility especially if we some range breaks.
I have a major headache and feeling super run down, so I might have to take it easy on trading. That said I’ve been playing with futures and Prop Trading Firms. There is a fascinating opportunity there but also some good and bad things. I’m still collecting my thoughts and experience on it — stay tuned.
Finally lets get into Wednesday’s price action. Overall Powell’s comments were triggered a lot of chop/consolidation with a downward bias.
I told members to be patient and to hawk for cheapie puts and calls. 5980p for $3 was my big payer.
I’ll share that analysis in the recap below.
SPY / SPX
IDEA: SPX 5980p for $3 could reach 12 to 20 and SPX 6030c for $2 could reach $10-20
So from the SPX 5980p and SPX 6030c chart below you can see how there was no point trying to go enter trades after the initial morning action. Contracts needed to decay. This is why I typically wait for for 2:30-3pm on FOMC day with Powell speaking. Even then it was a bit tricky.
I shared these ideas…
The call side paid 100% and got stopped for small profits.
The put side paid up to 400% with the puts going from 3-16.
There is no way I would have entered if I didn’t place the orders in advance. I sometimes get pretty lucky with my planning!
But you notice one worked and one lost, but the over net gains were great!
It’s important when trading 0DTE contracts to let contracts decay and get to a good risk/reward price! There is simply too much decay and once the idea becomes dead it loses value rapidly! example is the 6030c.
IDEA: /ES dip and rip off 6035 and 6025 levels
On Wednesday morning, in premarket I alerted that I wanted to get long on dips. At the open /ES filled the 6035 long and it rallied to 6073! I was alerted take profits at $20 and $30 gains by the end of the first hour. Good enough! before chop/sideways action comes ahead of FOMC data.
There is massive opportunity in this market. Are you taking advantage? Literally have planned and alerted trades that pay over 300-1000%! You will need patience to wait for entries and the exits. But if you have self discipline or trust bracket orders, my process can help you get the results you want.
Thoughts from Wed price action:
SPY is continues to consolidate but with some weakness
No clear signal yet for upside or downside next
BTFD bias continues until 592 breaks.
What is Two Hour Trading?
Two Hour Trading is my system for finding and executing trades while spending less than two hours a day trading. My goal is to earn 100-300% on the capital I risk while waiting for 1000%+ gain trades to set up. Key benefits include:
High-quality trades with excellent reward vs. risk
Avoiding overtrading and losses from it
Trading to win vs. trading not to lose
Stacking the deck in your favor
If you are busy and want to see my commentary and ideas in real time consider joining THT-PRO.
Education
How to Join a Strong Trend
The process I typically follow for joining a strong trend are as follows:
All day grinder: join on dips to 20ma
Multi-day grinder:
Join either on support test of morning lows or failed breakdown reversal at key level
Join at VWAP mid day or end of day
Keep it simple. Don’t chase, wait for support levels for great risk/reward entries!
Systematic Profit Taking
How do I take profits? I keep it relatively simple. Depending on the entry and range to the next levels I typically with take profits 50-100% of my profits at 3-10R and then raise stops to above entry with a goal of letting runners take me to the next level or 2 and to then reload if I believe we are consolidating before the next leg.
I then repeat the same process on the reload.
Securing Profits on Options overnight
Sometimes you get this massive paper gains overnight on options but you can’t secure it right? Well if you have a big enough account and a margin account if you have calls you can. What you need to do is buy or sell the stock overnight. and the option turns into a hedge against that position essentially securing your profits.
Trade Ideas - Plan for Fri Jun 20
Stick to process. The process and trade setups I teach works. Rinse and repeat over and over again. There will be losses. Any good system will have them. Being systematic also means the gains will repeat and come again too. If you keep changing your system/process trying in an effort to never lose a trade, you will never get to where you want to go.
Ideas
Overnight we backtest 592s in SPY and have fully recovered and green. With Triple witch and so many option expiring I’ll be looking for range tests for entries but with a net bullish bias.