At the start of the trading day Friday, June 21, 2024. UVXY, the short volatility ETF reached a new high near 26.2. The 10-minute chart clearly shows the higher top with the MACD diverging down. We expect The SPY to show the opposite and anticipate an opportunity to find OTM calls on SPY under 10 c and expiring that same day.

 The 10-minute chart of SPY at that time did not display a clear pattern with MACD divergence to the upside. Our opportunity to make money without the pattern in place is limited. Looking at call options expiring June 21, the first options available under 10 c were the 548s. They crept up to 14c and fell away from there.

 With no clear pattern on the major market ETF, we returned to UVXY and examined the options. The chart below shows the UVXY 25 put around 7c and rose to 60c in 2 hours.

While this is a good move, the volume on these options is in the hundreds rather than the many thousands we usually like for the major ETFs, and trading fewer...

Are you paying attention? 1:45pm Eastern 10:45 Pacific There's the VXX clearly showing a divergence on the 5 minute bars. Went right over to SPY not as clear a pattern but a divergence down 534puts exp today 9c at 1:50pm EST over a $1 by 2.10pm EST

VXX diverging up on MACD June 7, 2024 5-minute chart

SPY small divergence down June 7, 2024 5-minute bars

SPy 534 puts expiring June 7, 2024, rose from 9c to $1

#MACD #optionstrading

So you buy a hundred contracts, the ten thousand shares you're controlling at seven cents So how much is that $700 right? So you have almost your thousand dollars there and only a hundred contracts. But just a couple of hours later, you see your $700  investment turned into, Oh let me see here What's a hundred times seven hundred That's $70,000. That would be $80,000+ in about two hours. I just have to ask you the question Is a little bit of patience worth it in a situation like this?

#optionstrading #optionstradingtips #optionseducation #optionstradingstrategies 

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 “Pay attention” to the short-term charts for “The Pattern” on Wednesday between 1 and 3pm Eastern on SPY 

 Tuesday January 30, 2024 I mentioned  in my live weekly webinar 

Did I call it or what?

SPY 5-minute chart at 11.45am Pacific, 2.45pm Eastern

I clearly explained what to expect when the Fed is going to act! I look for chart patterns, same as always! The VXX had a clear upside divergence at 2:45pm EDT that led to every major market selloff! The SPY made 15 times + your money.  Brilliant, if I say so myself!! Absolutely incredible!!! 

VXX 5 minute chart at 11.45am pacific, 2.45pm Eastern clear divergence up on MACD

Returns on IWM puts did the best but even the SPY did well. Here's the SPY 485 puts that expired January 31, 2024. When the divergence was clear on VXX and SPY, the puts were around 10c. By the last 10 minutes of the day they were trading near $2!! 

SPY 485 puts expiring...

Well, like I said, I expect (based on the patterns, of course) the markets to break out to the upside! The IWM on expiration day is showing the 184 calls up 100 times from this morning! That’s 10,000%, so far!!

 Here are the IWM 184 calls that expired on December 1, 2023. Entry clearly below 10c, and exit when MACD turned down at around the $1 level.

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