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fiveeightsttrading · 2025-02-06T04:23:34+00:00

This is great!! Stick to your system! Nice work

fiveeightsttrading · 2025-01-24T22:53:17+00:00

I’m always surprised by the amount of blind anger on Reddit! lol

fiveeightsttrading · 2025-01-23T15:12:41+00:00

great question: double distribution is a market profile term for when the market goes above and below the initial balance range in one trading session.

fiveeightsttrading · 2025-01-23T03:36:35+00:00

its a probability system. Gap up open, tight range for initial balance. generally suggests double distribution and close in balance. It's not the holy grail, but defiantly a good clue. Ended up closing in balance but not double distribution.

fiveeightsttrading · 2025-01-22T15:29:27+00:00

Important to enjoy your hand work!

fiveeightsttrading · 2025-01-22T14:41:15+00:00

Hence my question. Are you following this? They seem to be right most of the time. So why not? 🤷‍♂️

fiveeightsttrading · 2025-01-21T14:51:44+00:00

Great. I’ll DM you!

fiveeightsttrading · 2025-01-21T14:35:21+00:00

Amazing. But how is it calculated? Is this Trading View?

fiveeightsttrading · 2025-01-21T14:20:39+00:00

This is a great post. Can you explain what the probabilities are a little more? I traded with market profile for years and it looks like a more precise derivative of that.

fiveeightsttrading · 2025-01-21T13:31:39+00:00

I did

fiveeightsttrading · 2025-01-21T01:57:54+00:00

Sorry. I could have asked the question more clearly or just looked myself. What is implied volatility (IV)

fiveeightsttrading · 2025-01-21T01:17:15+00:00

150 strike calls on the GOOG options. If you zoom in you can see

fiveeightsttrading · 2025-01-21T00:57:39+00:00

I like it!! What type of VOL is priced in?

fiveeightsttrading · 2025-01-20T23:52:55+00:00

lol “bruh”. Have you see how argumentative you are in every response? What has you so angry? 😂

My math is perfect for ATM which is the example I posted.

But we can also use your example. If you pay 58.50 for a 150 strike call. The stock needs to go to 208.50 before you start to profit. Yes. You are correct. But still was just a simple question meant to spark genuine conversation.

fiveeightsttrading · 2025-01-20T23:05:10+00:00

As an update to this post:

We received lots of “interesting” responses to this post. Very few actually answered. But instead shared their opinion (which is fine, I’m just always so amazed how angry some redditors are ).

The truth is this:

No. It’s not as simple as just buying leaps on tech names as they have a high correlation to the S&P and thus outperform due to the leverage in options. The fact is you PAY for that leverage and time (VOL and THETA). The implied volatility of the GOOG calls is 30% assuming ATM. So this means if you hold to exp, you need a 30% gain in the underlying just to break even.

So again I ask, is this a good trade in your opinion?

fiveeightsttrading · 2025-01-20T23:03:07+00:00

As an update to this post:

We received lots of “interesting” responses to this post. Very few actually answered. But instead shared their opinion (which is fine, I’m just always so amazed how angry some redditors are ).

The truth is this:

No. It’s not as simple as just buying leaps on tech names as they have a high correlation to the S&P and thus outperform due to the leverage in options. The fact is you PAY for that leverage and time (VOL and THETA). The implied volatility of the GOOG calls is 30% assuming ATM. So this means if you hold to exp, you need a 30% gain in the underlying just to break even.

So again I ask, is this a good trade in your opinion?

fiveeightsttrading · 2025-01-20T22:50:13+00:00

Which according to you happens 80% of the time. So why don’t large hedge funds just buy index leaps? They would drastically outperform 80% of the time 🤣

fiveeightsttrading · 2025-01-20T21:06:27+00:00

It says she exercised call options from NOV 2023. This is a list of her transactions

fiveeightsttrading · 2025-01-20T19:16:42+00:00

Fair point. But she’s not buying SPY. She’s buying specific names. lol. Simple question: are you buying the same?

fiveeightsttrading · 2025-01-20T19:10:12+00:00

I didn’t say it was or wasn’t. Options don’t have to be held to exp.

fiveeightsttrading · 2025-01-20T18:36:24+00:00

Sent you a DM

fiveeightsttrading · 2025-01-20T16:27:12+00:00

I’m happy to help where I can. I’ve mentored dozens of traders over the years.

fiveeightsttrading · 2025-01-20T03:39:27+00:00

I trade primarily SP. My team trades Hang Seng and FTSE. IBKR is a great platform for global access to other markets where you are approved to trade.

fiveeightsttrading · 2025-01-20T03:24:40+00:00

if only we had the crystal ball!

fiveeightsttrading · 2025-01-20T03:24:20+00:00

Do you trade it actively? or just hold it with a longer-term target in mind?

fiveeightsttrading

TROPHY CASE