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Tradytics AI

5 Mar, 11 tweets, 3 min read

Important thread on what I'm trying to do these days to reduce my risk.

FYI, Although down the last 2 weeks, I'm fortunately still up about 25% in my overall portfolio so if that helps take some of this advice seriously. Finally, it's just one man's opinion, I could be wrong.

1. Stop buying naked calls or puts. With how the market is hurting people, it's hard to time everything and buying naked calls and puts will incur you a lot more losses than doing something more risk-averse strategies.

2. I sold all my naked calls today for about 20-30% losses on every one of them. I'm putting all that money into cash secured puts for my favorite stocks. Right now, I've two for $SOS and $MARA. Why do I do that?

3. Since we are getting this huge dip, I want to buy stocks becasue long term, most solid companies go up and I'm highly bullish on crypto/blockchain which is why I want these stocks.

4. If my cash secured puts are exercised, I get these stocks at a very cheap price. If not, since volatility is very high, I'll simply keep my premium. That's asymmetric risk for me and a win-win too.

5. How do I find stocks to buy cash secured puts? I simply go to this opintra tool and sort by Implied Volatility. That gives me a list of stocks with very high IV. I simply pick the companies I like e.g $PLTR $GME etc.

tradytics.com/opintra

6. What else can you do? Well, since we broke many technical setups, you can sell covered calls for the stocks you have right now to offset some of your losses. If you have stocks, there is no reason you should not sell CCs in a downtrend market. Keep yourself safe.

7. What else? You can also do put debit spreads to take advantage of the free fall we are having these days. In case market reverses, your risk is limited. If it continues downward, you get a decent reward.

Use our gambit tool to find good setups.

tradytics.com/gambit

8. What else? Finally, if you want to remain bullish (perma-bull), I'd highly recommend getting some $VXX shares, $SQQQ calls, or $SPY / $QQQ puts. Think of it like insurance to save you from huge losses. People underestimate the importance of hedging. I bought $SQQQ calls today

9. That's it. Just a few tips that I'm going to personally follow while we remain in this huge downtrend. I'm not selling a single share since I belive in all the companies I have shares for. I am just trying to offset my risk now.

10. If you do not agree with me or have other suggestions, please feel free to post them. Happy to chat.

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More from @TradyticsAIbot

Tradytics AI

@TradyticsAIbot

2 Mar

How to find potential plays using our Options Market Dashboard. A small & important thread.

1. First, take a look at the most bullish and bearish net premiums and find the top 3-5 candidates. $SQ $RKT $TSLA $AAPL are a few here. Keep an eye on those and look at live options flow

2. Next, go down and take a look at the cheaplies and leaps widgets. These are some of the most useful widgets you'll find on any website, period. $GM is doing well today, see if you can find it here.

Others are $RIO $NLS $XOM.

3. Next, go to the Most OTM widget - these are slightly risky candidates but their reward is also extremely high since these are far out of the money contracts with high volume. High volume is there to see if there's interest in it. Another extremely useful widget.

$FSR $SE..

Read 5 tweets

Tradytics AI

@TradyticsAIbot

1 Mar

1/n Thread

I've always wanted to build Tradytics into something that people can just use themselves and be profitable. I personally do not like explicit alerts but many new traders want them so we built tools.

However, I wish everyone starts learning to analyze options flow. 🙏

2/n Eventually, every trader realizes that they need to build their own strategy. They cannot just rely on alerts from others because even if those alerts are good, traders mostly suffer losses just because it's not their own thing.

3/n Services should always be used to couple your trading strategy. You can find "potential" plays by looking at other services but following them blindly doesn't lead to anything in my opinion.

Read 9 tweets

Tradytics AI

@TradyticsAIbot

24 Feb

Options flow tip.

How to find bottoms? When you see puts being sold for large premiums and short-term out-of-the-money calls, that is a strong indication that people think we have bottomed. Here's an example of $TSLA. See how there are tons of sold puts and bought calls >= 650.

How do we know whether puts and calls were bought or sold, that's what the side column tells you. Green means puts were sold and calls were bought and red means puts were bought and calls were sold.

Now you do see some 600 puts bought which might actually pan out eventually but their expiration is slightly farther away from the 650 puts sold and 700 calls bought.

Read 5 tweets

Tradytics AI

@TradyticsAIbot

23 Feb

Let's make a pact today and save each other from huge losses like $CCIV. No matter how much we like a company/stock, we will never buy when it's overextended from the 20 EMA? Who's in?

I've personally never done it already but I think new traders need to make this a rule. 🤝🤝

Look at the current price of $CCIV and see where it actually fell, right almost on the 20 EMA. This is why you never go in on extended stocks, because sooner or later, most of them fall back on moving averages. This single principle will save you from a lot of your big losses.

Both 20 and 50 moving averages becomes dynamic support levels that many stocks hold quite well especially the stocks in a good uptrend. Please please take care of your money and stop chasing. It will only bring you losses in the long run!

Read 4 tweets

Tradytics AI

@TradyticsAIbot

19 Feb

IMPORTANT EDUCATIONAL THREAD. 1/n

A quick thread on implied volatility and cash-secured puts for newbie traders and new options traders.

First, implied volatility is the anticipation of how much the price is "expected" to move. Most times, IV < realized volatility. Important!

2/n Why do we care if IV is mostly less than realized volatility. I'll explain.

But first, you also need to know about another loose property of IV. When it gets too high, it mean reverts. What the hell does that mean? Look at $MARA historical IV.

** 1/n It's IV > Realized volatility. Sorry, this is important to get right. Stupid me!

Read 17 tweets

Tradytics AI

@TradyticsAIbot

4 Feb

1/n Long but an important educational thread. 🏆🏆🏆

Let's talk about a comprehensive way of finding huge runners using robust statistical techniques. I'll go over examples of $MARA $RIOT $SOLO $GME $MVIS $MKND. Let's stop YOLOing and start making educated decisoins.

Buckle up.

2/n In any financial market, many instruments move together with each other. They can go up together or they can go down together. What quantifies this is called "Correlation".

For instance, $AAPL and $QQQ has a high correlation because they move together.

3/n However, correlation does not help us "PREDICT" anything. It's just a tool that gives us insights into what moves together. Those insights are useful for a variety of purposes like finding sympathy plays, etc. But we don't want to talk about that today.

Read 19 tweets

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