Strazza and I have been having fun discussing options stuff on Twitter Spaces over the past few weeks. Even our friend Brian Lund (@bclund) has been contributing mightily to the conversations.
The topic of discussion has mostly centered around 0-DTE – or daily expiring – options and some experimentation I’ve been doing in this very active corner of the options market. While I will continue to talk about that, we decided we want to broaden out the topic material to include anything else we’re seeing that we can trade with options.
We’ll discuss trades we have on, trades we might be considering entering or anything else that feels topical in the world of options.
During the calls, we like to encourage audience participation. One piece of feedback I’ve heard from a few of you is that you don’t know how to actually participate. “Where’s the button to raise my hand?”
Just because some (most) investors choose to ignore it, doesn't mean that moves in stock prices are random.
They're not.
Stock prices trend.
It's just math. Or science maybe. Or both, I don't know.
But they do trend. This we know is a fact.
And since last June, the majority of stocks have been appreciating in price. And very few stocks have been falling in price, to the point where there are almost no stocks that are still falling.
So if stocks were not going up in price in this environment, that would be really weird.
From the Desk of Steve Strazza @sstrazza and Alfonso Depablos @Alfcharts
This is one of our favorite bottom-up scans: Follow the Flow.
In this note, we simply create a universe of stocks that experienced the most unusual options activity — either bullish or bearish, but not both.
We utilize options experts, both internally and through our partnership with The TradeXchange. Then, we dig through the level 2 details and do all the work upfront for our clients.
Our goal is to isolate only those options market splashes that represent levered and high-conviction, directional bets.
