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Strategies & Market Trends : ajtj's Post-Lobotomy Market Charts and Thoughts
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ajtj99
To: Qone0 who wrote (83096)12/5/2023 9:30:06 PM
From: Sun Tzu1 Recommendation   of 96854
 
II've been thinking about using 0DTE with my system too. I'd be curious to know if harmonics does a better job with these or my system is better for 0DTE.

My observation has been that when a stock gaps (up or down), often it lands close to one of my lines. So you can buy cheap OOM 0DTE options before the earnings and hope to bring them into money.

For example, recently PLTR beat their numbers and gapped up. Since it was already near its green and blue lines, it gapped up to its red line.

It is still likely that most of them will lose. But once in a while an option that you bought for 0.05 will become a 20 bagger overnight.

Here are some examples:

E.g. PLTR jumped from the green line to the red line after beating the earnings (14.5 to 18.5)


E.g #2 GTLB was ~52 on the red line already. If you were to buy a put, it would be the green line ~42. So if you wanted to be symmetric about it, your upside should be ~62. Give a bit to be conservative and buy puts at 44 and calls at 60 (both are 8 points away from 52). The actual high after beating was 61.27.



E.g. #3, #4 - OKTA and EXAS
The point I am making here is that IF the stock is going to gap, it is likely to gap very near one of the colored lines. And straight stretches of these lines are the magnets for it. So if one wants to buy 0DTE options before some special event, then getting them near one of these lines provides the best risk/reward.

I put some notes on the EXAS chart o highlight my reasoning.

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