Options (SECRET) Stocks + MooMoo Question (Chatroom)

Good morning everyone! I hope you are all enjoying your week and are gearing up for another day in the Market! I apologize for my lack of articles recently. I have been incredibly busy and have not had the time to write an article in the way I want to.

These are the stocks in particular that catch my attention. None of these stocks were chosen at random, I have done my own research into them, some of which I will share with you in further sections. I should also mention I am not the only trader eyeing these stocks. I have seen A LOT of VERY SUCCESSFUL Options traders focus on these stocks more times than not, so let's look into them and find out what they see.

All of the Options Contracts for these stocks are incredibly affordable, and although it might not reflect it here as Markets just opened, but they are also liquid.

Each of these stocks are incredibly expensive, however there is little to no hype around them (with the exception of Costo because of Earnings). However, despite their price, their Options chain is very affordable.

With an affordable Options Chain and a stock with a high underlying price, this means that these Options have a respectable IV. Meaning they all have a decent pre-priced in precentage which Markets think they are susepeptable to volatilitity and will move based on price action.

In English: These stocks with higher prices have a stronger probability to move a couple dollars to the upside or downside on the day. They aren't penny stocks where a $1 is a 100% move. This, supported by a decent IV and affordable Options Chain, means they actually have great value.

For example:

A $2 move, or 1.2% shot contracts that opened at .14 all the way to over .50. That is a over a 150% move and the contract expires tomorrow.

DG is up about $3 as well, or about 1.8%

Only ONE Trader or Market Market is willing to sell an option for .65, all the others are much higher

My point is, these stocks are make a 1% move almost everyday.

With Affordable Options + Decent IV + Large Underlying Price, traders can make A LOT OF MONEY.

There are some KEY consistancies I found with these stocks.

Meaning on every chart on the higher time frames, you can see candles with HUGE volatility which is perfect for Options Traders.

Look at UPS on the 4 Hour for example

There is a LOT of respect for levels on this chart. Which gives traders confidence when they are entering swing trades or scalp trades.

Costco is an exception to the rule right now due to earnings volatility, however each stock is over 60% respectful of levels to the downside or upside. If a trader is able to focus on one of these stocks and really learn it, they don't need to focus on much else.

Master one of these stocks and try it yourself.

Remember that the higher the time frame, the more concentrated (stronger) the liquidity is. I don't need to post all of the charts for you to understand, infact I am not going to in hopes that you take a look yourself. Each of these stocks are not only respectful of levels, but of liquidity is as well.

This point brings me to the setups for these stocks.

Don't enter a trade unless the stock reaches where the buyers or sellers are. No need to guess where the stocks will go for stocks at these high prices.

Wait for liquidity, then look at the chart and where the volume is at. Then look at the options chain, take a look at where the SPY and other markets are at, assess the different time frames and look for a trade within your personal strategies.

An even better trade would be to wait for a stock to reach liquidity close to a key level.

Key levels can be found using indicators, but they can also be found based on price. Anything divisible by 5 at a signlificant price (especially the 0's) can be seen as more significant.

$500 is more significant than $520. This is because of psychology. Seeing the 5 change to a 4 can move the price depending on support, resistance, volume, and other metrics.

In an effort to combine what I am talking about, in yellow I have circled the occurances that price action has respected the levels, and in purple I circled where the price action has respected the levels which are relativly close, if not entirley inside, liquidity.

Wait for the setup, take a look at volume, where the levels are at, where the liquidity is at, how the overall market is performing, look at the Options Chain, and do your own research before deciding if the trade fits your strategy.

I personally would not take a Trade based off the lower Time Frames. The only Time Frames which would be relative for these stocks to me are the 4 Hour, 1 Hour, and the 5 Minute. You could of course use the Daily chart and I encourage that, however I would only look at the levels and liquidity on the higher Time Frames, levels on the higher and mid-range Time Frames, then I would only monitor my trade using the lower Time Frames such as the 5 Minute and 1 Minute.

Good morning everyone! I originally wrote this article on Thursday, but I want to revisit the stocks today to see how they did.

The stocks are still very respecful of levels and liquidity with a % of probability above 60%. Which is incredibly great to see.

Please keep in mind that these stocks require a lot more due dilligence than that I have provided. Therefore, please always do your own research before taking a trade. You will probably lose money, so consult your financial advisor, asses your personal finances, and only take a trade based off your own rules and knowledge of Markets.

My intentions of this post are NOT to say that you WILL make money trading these stocks. To be clear, my intentions are to share information with all of you about stocks that have potential to make money based off MY research. I could certainly be WRONG, therefore any losses OR GAINS are credited souly towards the individual trader.

-

The reason I have decided to write this post is because these are very heaily gatekept stocks that I see traders, who are much much much better than I am, make A LOT of money from. So I decided to take a look into them and see why they traders love these stocks and frequently visit them. Hopefully you compound my research with your own and find new tricks I haven't noticed or overlook. There is also a reason why I left out other forms of TA like flags and structures. I have not studies these stocks in that way, but anyone can see they respect the fundamentals of liquidity and levels.

MooMoo has recently began to impliment a new chat feature within its UI. This could be useful to share charts, alerts, and other research about Markets rather than writing an article.

If so, drop a like or let me know in some way if I should create one when the feature becomes available to me. I think there could be a benifit to using this feature for all of us, therefore if you would like me to create one let me know!

With that said, thank you so much for reading and all of the support. I hope you all have a great weekend and close out with thick cheese from your successful trades in the Market