Thread by @assflowcapital

Pinned education thread

Will post all educational content in this thread going forward

How I trade $spx 0dte

1. @satymahajan atr levels + ribbon, SR channel by lonesome, ttm squeeze
2. Buy at bid on opposing candle
3. Scale out on long candles
4. 3m entries, 10m for trend
5. Watch $vix on 10m
6. @unusual_whales flow
7. Atm or 1 atr level otm
8. Wait for pullback

Tips to trade $spx 0dte

1. Do NOT buy far otm contracts..2 atr levels max and scale out on long candles
2. Watch option chain for volume spikes on contracts...can predict a move
3. Watch $vix on 10m for trend
4. Explosive moves come after Bollinger bands contract (ttm squeeze)

5. EMAs are your friend...8, 13, and 48 are your best friends
6. Never buy $spx at the ask, esp on directional candles...you will instantly be -20% or more on a wick
7. Recognize basic TA...the smaller the timeframe the smaller the move
8. Diamond hands will turn green to red

9. SIZE DOWN

$spx can go 100% on one 3m candle...sometimes more.

Due to the volatility I recommend risking what your stop would be and go fill risk. If you're wrong, change direction. If not far otm, the initial trade may go green

With $spx, less is more

How I trade an $spx falling wedge breakout

1. Wait for the breakout
2. Initial breakout will usually be followed by stop out red candles ar 48ema
3. Entry is at 13ema bounce
4. This will usually be followed by a squeeze

We caught this one in @satymahajan discord live for multi

How to spot a 🤮 🐬 on $spx

1. There will usually be a "fin" created by a rejection of resistance
2. Consolidation inside the ribbon forming a squeeze
3. Rejection of 13ema
4. Eventually leads to a squeeze down and a dump

Getting good entries on $spx is an art

Always enter on opposing candle in a trend

Price will always pull back to ribbon. Entry should be at 8 or 13ema. Never chase

The thicker the ribbon, the stronger the trend

Long consolidation will form a squeeze and explode up or down

Selecting the right strike on $spx is also an art

$spx typically moves ~60 pts in a day

1. Strikes 50+ away are high risk, high reward. You're playing volatility as chance to go itm is low. Diamond handing will often lead to $0. You want to scale out often

2. Strikes ~20 away are medium risk, medium to high reward. Chance of going itm is high and when this happens they move parabolic.

3. Strikes atm are low risk, low to medium reward. Max gain is ~500% on a trend day into close

Ever wonder why $spx explodes sometimes and hoe to catch it?

1. $spx squeezes when Bollinger bands compress in Keltner
2. $vix squeeze
3. When they happen at the same time in opposing directions, price explodes (up/down)

I like ttm squeeze pro indicator

Watch $vix for trend!

TA is often misunderstood

1. Not all patterns are symmetrical
2. Not all bullish and bearish patterns break out in expected direction
3. The smaller the time frame, the smaller the move

Patterns are not fool proof. Make sure to wait for confirmation

$spx Friday is an example

Understanding bid/ask on $spx and how to bto and stc

1. Far otm spread is usually .05 to .10
2. Otm spread is usually .2
3. ATM spread is usually .6
4. ITM spread can be $1 or more

Buy is always at ask or mid
Sell is always at bid or mid

This is important to remember

When bto, NEVER buy at market. Always buy at the bid on opposing candle for best r:r

Depending on otm,atm,itm if you buy at market you're buying at the ask and will instantly be red...if $spx wicks you can be -40% instantly

When selling, try to sell at the ask into strength so it becomes the mid and you get filled

Only sell at market in a squeeze when volatility makes $spx contract explode to get out quick

If ITM never sell at market unless necessary or you'll leave a lot of money on the table

When you put in a bid on $spx, you're waiting for it to become the mid and fill

Same at the ask when selling...it will fill when it becomes the mid

You are essentially predicting price movement to maximize r:r and profit potential

@unusual_whales flow sub thread

I mainly look at 3 filters on $spx

1. >100k 0dte
2. >50k otm
3. >25k size >oi

1. Anything over 100k 0dte on $spx will usually be a spread

They can be bullish(debit) or bearish(credit) call or put spreads

These can help signal direction and tops and bottoms for the day

If >100k and directional, full port (jk, not really)

2. >50k otm on $spx 0dte are usually directional single leg, sweeps or multi leg, but can be spreads as well

Since most large money is atm or itm, these can be a clue to a trend day up or down

Floor orders hold a lot of weight here

3. >25k size>oi on $spx 0dte can be a dead giveaway for a large move, however lately I've noticed they're selling these which can help identify tops and bottoms

Also, pay attention to positions being closed and new ones not opened

A lot of call selling on a bull run and put selling on a bear run can signal the top or bottom is in on $spx

Finally, the market tide

I know it's a bit controversial, but what I'm mainly looking for are crosses in call and put and continuation

Most trend days will have a trend market tide and in these situations I like to enter $spx on pullbacks (up or down)

How I identify a trend day on $spx

1. Market tide on @unusual_whales is in trend
2. Otm calls or puts >50k in the flow
3. Price rides @satymahajan ribbon (bouncing at emas)
4. $vix in opposite trend

How I approach risk management on $spx 0dte

10% of port - high conviction, usually atm delta .5 or .7
5% of port - medium conviction, usually 1 @satymahajan atr level away
1% of port - futher otm, eod positions

I do not use SL on otm...if I am wrong, I focus on the pivot

1/2

I like to scale out based on 3 main criteria

1. Long candles that cause volatility spikes and otm contracts explode
2. Key resistance/support
3. @satymahajan levels

The goal is to compound gains daily

It is not uncommon to average >100% on each otm green position

2/2

NEVER average down on an $spx 0dte position unless it was a pre planned scale in

This is a surefire way to blow up your account

Even if it eventually reverses, you could be so far otm theta will kill you

You don't have to be right on every trade..just need to end the day green