MooMoo NX (Alternative Options Custom Setup + MA Bounce Screener [Celebration Gift!])

Good morning everyone!

I hope you all saw some profits yesterday and are gearing up for another day in Markets! I want to thank you all for the support and recent followers!

In celebration of the completion of the first Likes Challenge, I will be adding a Stock Screener I have created that I created which specifically looks for MA Bounces. It's not perfect, but the concept is a start! Feel free to tweak the settings on your own and feel free to let me know of anyway I can improve them!

With that said, let's get into the article.

I actually really like this format as I was able to display a lot of Options charts, analytics, and price action all in one page without having to sacrafice too much of one setting in order to fit another.

I'll quickly break down what we got on the screen.

Essentially tracks the relative interest between ITM and OTM Options contracts.

In this image we can see that KVUE's strike price of 24 has increasing interest in Options contracts expiring on May 31st. This tells me there is some unusual activity surrounding the interest in these Options with this strike price. It also tells me that not a lot of traders are looking for Options expiring on June 7th. A simple structure to see where the averages of interest are.

This tracks an Options contract's Implied Volatility vs its Hisorical Volatility. For those who do not know, an options Volatility is one of the most important metrics if you want to make money. Without Volatility, your contracts aren't going anywhere. It is however a double edged sword. Should the price of a stock go against you, then your options can get crushed very fast.

What I mean is, as Implied Volatility approaches it's Historical Volatility, the more potential for the contracts to move in a big way when a stock or ETF goes to the upside or downside.

One of my favorite metrics are the ticks. Here you can see orders being bought and their size. If you see a someone buy, say, 20,000 contracts, especially on a niche stock, then it would be a good indicator to take a look at the chart and research the company to try and see if whoever bought that many contracts might know something you don't. Ticks are very important for that reason, as well as the number of ticks will show you how many traders are trying to get in before a potential move or sell before a potential move.

Similar to the Option Volatility Analysis, the Volatility Analysis tool takes a more overarching look at the stock's Options volatility relative to the stock's current price.

The time an unusual purchase was made.

The stocks ticker.

When the Options contract expires.

The number of days until the Options expiration.

The price which deems the Options as ITM (In The Money) or OTM (Out Of The Money).

The type of contract purchased, whether Calls or Puts.

The skew between the Options Ask or Bid Price. Options labled as ASK were purchased closer to the ask price, Options labled as BID were purchased closer to the bid price, and MID were Options purchased in between.

Follows closely to the side of which the Options were purchased. Usually Bullish or Bearish. All Neutral sentiments have no say of whether they were purchased FOR upside or downside. You can figure that out based on which type of Options were purchased (Call or Put).

How many contracts were traded represented in Thousands.

An attempt to find the largest filled orders, then adding them with the other orders. If someone purchased 10,000 contracts, the number would start at 10,000. All other quantities of contracts will be added to this number.

The Options contract's Implied Volatility. Anything over 20% is considered decent.

The specific Option's current Bid Price (sorted by the Strike Price).

The specific Option's current Ask price (sorted by the Strike Price).

The ammount paid by the buyer in order to buy an Option contract, or the ammount an Options seller recieves when selling that contract. I will go more indepth about an Option's Premium in another article. However, generally the higher the premium, the more expensive an option is (not always true) as a result in the interest of the specific Option to be purchased.

The % of distance between the Option's OTM value of being in the money. KVUE is at $19.040, therefore it is 3.06% away from being ITM.

The rate in which the Options contract decays over time. I will write more about Theta in another article.

Normal - Typical buying and selling flow

Floor - Long or short insurence. Not always accurate

Cross - When a buy or sell transaction is normally not posted. Not entirely accurate

Sweep - Unusual buying or selling volume at a higher or lower price than usual

The industry the company operates within

Determines the value of the Option up until expiration. You can find price-ineffecient Options by comparing the Options Underlying Price to the Options Premium, %OTM and Strike Price. I would not take a trade based on an options Underlying Price alone.

Delta x 100 = % chance of expiring in the money. Subtract that total for the odds of expiring OTM.

Example: .25 has a 25% of expiring ITM and a 75% chance of expiring OTM.

An Options Delta also estimates the options movement per each dollar a stock moves.

The rate of change between an Option's Delta and the price. This metric is at its highest for ATM contracts and moves lower the further OTM.

The Option's sensitivity to changes due to the volatility of a stock.

The Option's sensitivity to changes in the risk free interest rate.

The Option's Interest Rate aka Sentiment.

Single Leg - purchases involving a single Options Contract

Multi Leg - purchases involving multiple combined contract for a more complex trade

Determines the type of execution made when the Options are purchased. Usually accurate.

The exchange the Options were (last) sold on.

When the previous earnings date was for the underlying asset (stock).

Here I can see what the chart looks like for each of the transactions within the specific Options contract I choose (sorted by Strike Price). I like to always include the chart especially if I am in a position.

The name of the game here is to find stocks that have either had a recent swing low, a sweep low, or have moved lower resulting in the price falling inbetween the 50MA and the 20MA.

With respect to the overall trading volume and a stock trading above 1% normal volume, I want to filter for stocks that look like they have the potential to reverse to the upside after a recent move to the downside.

On the previous trading days, GAP has "gapped" down causing it to fall below the 20MA and 50 EMA. However, on the next trading days after the downside move, gap would make a candle to the downside but find support off of the 20MA for more upside.

So days where the price moves to the downside but closes above the 20MA tells me that this stock has a potential upside move in store should it remail below the 50 MA.

This also happened on other downside days where Gap ended up closing just above the 20MA and below the 50MA

It's not 100% accurate, more like 60-65% accurate, however that's the whole point of screeners. Keep in mind, this is the 10 minute time frame. On the 1 minute time frame, the accuracy is much higher. I just cannot demonstrate it with MooMoo NX because I cannot zoom out further thn I would like.

When using the screener, try to find stocks that look like this. A clear gap down into support below the 20MA and 50 EMA, and enter before the price reaches above the 50MA.

Try it out for yourself and let me know what you think! I have seen strategies like this before and I think it could be useful if tuned more, but for now these are the basic settings I have for you all. Also, it should be mentioned that this screener is a good setup for the next day. At least thats what I would use it for 70% of the time.

Thank you for reading and all of the support! I hope the Alternative Options setup on MooMoo NX was informative, as well as my summaries of what each tool does and means. Furthermore, I know that the MA Screener is nothing new, it has been done plenty of times before. However, with the settings that MooMoo provides, I think what I have here is an excellent start. Hopefully you find it useful and can build upon it to make it even better!

Thank you all for sticking around with me as we continue to grow within MooMoo. For Followers, I am trying to make a Breakout of the Highs screener.

I will update you all on when the screener gets to the point of over 40% reliance.

Either way, Following or not, I appreciate you being here and look forward to new Bitcoin and Polygon charts. It's been a while and we should go over where we are at in Bitcoin and Polygon's month long consolidation.

Thank you again, and I hope you all enjoy your day in the Market