Thread by @MapleStax

How I trade Options at market open!

🧵 A THREAD 🧵

Simple and detailed explanation on how I approach my executions each morning.

1. Each morning I will chart out the channel that is presented in ext hours. This provides me clear levels to take Calls/Puts off of if price were to reject/base. I gather my contracts I am interested in and have them ready to execute for open.

2. Prior to open I will chart out any Supply and Demand zones where I feel confident participants in the market are present. This gives me more strength when selecting contracts and confirming my analysis of the current trend.

3. I then look at what contracts are in the opposing zone that is a realistic target to be met. One of my favorite setups is taking a trade from zone to zone and leaving a portion to ride.

4. Contracts I consider: 1-3 OTM contracts closest to ITM. Remember to always gauge the strength of the trend and to not be greedy. Take gains on large rallies, sell in to strength. We want the meat of the move, not tops and bottoms.

5. If we reject off the top side of the channel, I am executing the Puts I had ready. If we bounce off Demand/Support then I am playing my desired Calls. In both of these scenarios I have a tight stop if the Support/Resistance level breaks to the opposing direction which I favor.

6. When the contracts do go towards my desired direction, I will scale according to plan and in regards to price action. The goal is to let contracts ride and lock in big picture moves. Don’t lose yourself to greed or “what if” scenarios. Take your profit, do what is consistent.

7. It is better to be reactive than to try and predict the top/bottom of a reversal. LC options are forgiving in the fact that once a trend is discovered, it typically will remain intact. Always mark your pivots to see the trend clearly. HH/HL/LH/LL

8. Note: If the channel is broken and based upon (retest) then I now know that price action has truly broken out and that level will now be used as support. This is where trading the trend comes in handy. Don’t blindly take contracts.

9. Always ask yourself: “Who is currently in control of the trend?” This will challenge you to always question whether or not you are playing in the correct direction. Fighting the trend will always be a losing battle.

10. Lastly, this is one of the most important aspects of trading. If you’re wrong, then admit to it and cut your loss. Cutting losses quickly is a skill that all profitable traders must learn at some point. Be open minded, not stubborn.

11. For the Visual Learners #ChartHashira

12. I want to thank all of my great friends who have helped me along the way trading Options. Please, give them a follow: @AyaanScalper @RHODESA123 @DrBullShark @ShinobiSignals @CaryPalmerr @MrRobotoTrades @InarGG

13. Patreon Daytrading/Swingtrading Education:
Patreon.com/MapleStax
Patreon.com/MapleStax

Live daytrading each day and answering questions:
Twitch.tv/MapleStax

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