TSLA
Tesla
-- 421.060 PLTR
Palantir
-- 80.550 NVDA
NVIDIA
-- 134.700 AMD
Advanced Micro Devices
-- 119.210 OXY
Occidental Petroleum
-- 47.130 
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.
However, I think this post will make up for that.
Note: This article was intended to be only For Followers, but as a way to show my appreciation for all the support from those who aren't Following and all the new Followers I am going to write this for everyone. Buckle up because I am about to spill some secrets.
In Today's article, I want to highlight a few stocks that interest me when it comes to their chart and Options Chain performance which I want to share with all of you. Understanding these stocks has a high probability to result in strong profits if understood correctly. You could lose money, so ALWAY do your own research.
Article Sections
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.
1) Options Chain Affordability
MRVL
DG
DLTR
MCD
COST
UPS
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.
2) The Stocks They Are + IV
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:
UPS opened up $2, only a light 1.2% on the day so far, but look at the Options Contract $UPS 240712 138.00C$.
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
Now the ASK its at .80
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.
MRVL
4 Hour
1 Hour
5 Minute
DG
4 Hour
1 Hour
5 Minute
DLTR
4 Hour
1 Hour
5 Minute
MCD
4 Hour
1 Hour
5 Minute
COST
4 Hour
1 Hour
5 Minute
UPS
4 Hour
1 Hour
5 Minute
Setups + Analysis
There are some KEY consistancies I found with these stocks.
1) They are all VERY volitile
Meaning on every chart on the higher time frames, you can see candles with HUGE volatility which is perfect for Options Traders.
2) They all respect levels from the upside or downside with above 60% probability
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.
DLTR 1 Hour
MCD 4 Hour
COST 4 Hour
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.
3) Liquidity Respect
DG 4 Hour
MCD 4 Hour
DLTR 4 Hour
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.
Setups
This point brings me to the setups for these stocks.
1) Wait for liquidity.
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.
Do Less Until It's Time To Do More
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.
2) Wait For Liquidity + Levels
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.
MRVL 4 Hour
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.
Do Less Until It's Time To Do More
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.
3) Time Frames
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.
EDIT:
Good morning everyone! I originally wrote this article on Thursday, but I want to revisit the stocks today to see how they did.
MRVL 4 Hour
MRVL 1 Hour
DG 4 Hour
DG 1 Hour
DLTR 4 Hour
DLTR 1 Hour
MCD 4 Hour
MCD 1 Hour
COST 4 Hour
COST 1 Hour
UPS 4 Hour
UPS 1 Hour
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.
So my question is, would you like me to create a Chatroom myself to share my research, Options Screener Alerts, watchlists, levels, and more?
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
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
Ecyph707 : Great Post, thanks for YOUR thoughts. I think a Chat Room could be Beneficial to all Interested or Serious about making
Money in the Market. Do your thing!
AkLi OP Ecyph707 : Thank you! And i’ll be 100% looking into it once the feature becomes available
Scoreville : Thank you for taking the time to write and share your research! I’m very interested in all you write about to complement what I am reading in some option strategy books. A chat room sounds like a great idea. Following for sure!
股添乐 : It's too miserable, don't catch the flying knife.