First things first, scanning through charts and seeing what looks good in either direction. I like to look for a multitude of different things. Lets take a look at this $AAPL chart for reference:
Nice double bottom near $168 and ended up closing green on the day. However I know if $167.50 fails to hold, there is also plenty of downside, so this allows room in either direction. I will then head over to @unusual_whales and check the intraday analysis for $AAPL
Before I head over to Unusual Whales, you must know the other main things I am looking for when playing options other than information provided by UW:
-Tight Bid Ask Spread to minimze Slippage
-Beta > 1 (Volatility)
-Solid ATR
-Solid Chart
I can see for today, the top 4 biggest orders were pretty evenly split on the day, so this is not offering me any one sided bias atm.
I am also checking the most active chains for $AAPL to see what has the highest OI and Volume and if there is any block of calls or puts that really stands out to me. As you can see, the most active chains for the day were calls at a strike ranging from $170 - $175.
This block of calls had a ton of Volume and OI, something I always look for before entering a position in either direction. This is allowing me to see what has the most interest atm.
I will then head over to Historical Flow and see if I can spot any abnormalities within the 7D and 30D call or put volume. Again, this will give me insight into what potential direction the stock may head.
I will then check the 15 and 30K premium flow to see what large scale orders are siding with. As you can see below, the Call to Put ratio is about 75% respectively on 15 and 30k minimum premiums.
I would rather see what big money is siding with over retail. You can check other premium orders, I am specifically looking for larger scale ones. I am also looking for the flow in regards to expiry, not a specific strike. Some may look at specific strike, however i do not.
After I have gathered all the information from UW, I will then create my trigger levels on my charts using a combination of ATR (Average True Range), Moving Averages, VPVR, Psych Levels, Weekly and daily High Low, etc.
This gives me a plan no matter what direction the stock moves in. I will be doing a future thread on how exactly I look for my triggers. But for now, I just wanted to showcase one way I utilize @unusual_whales platform.
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