presented by Thomas Wood | MicroQuant SM Identifying Key Support and Resistance Levels 11-Hour Options ™ 2.0 The Next Evolution of Success
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11-Hour Options ™ 2.0 • Evolution of 11- Hour Options™ • Trade Selection – making the trade Easier • Trade Management – adaptability & flexibility to the moving price • Risk Control – Progressive Delta Neutral Strategy
Evolution of 11-Hour Options ™
11-Hour Options ™ 2.0 Evolution of 11- Hour Options™ Over the past 20 months, 11-Hour Options has produced an overall win rate over 95% & a weekly return over 5%/week. Opportunities for improvement are in : • Trade Selection • Trade Management • Risk Control
11-Hour Options ™ 2.0 Evolution of 11- Hour Options™ Trade Selection : Making the trade EASIER • Use a Trade checklist : Trade Hierarchy – Take into account the most important success factors • Develop an awareness of Intra-Day price movement. • Expand Entry Trade Timing from 12 Noon
11-Hour Options ™ 2.0 Evolution of 11- Hour Options™ Trade Management : ACTIVE Role IntraDay • Flexible Stop Loss levels 2xgain – 3xgain • How to actively “Fix” counter trade price moves • When “right” – look for Bonus Directional Trade • Adapting Current Spread Position (Defensive) • Rolling-Out and Rolling-Up/Down Spreads
11-Hour Options ™ 2.0 Evolution of 11- Hour Options™ Risk Control : Progressive Delta Neutral Strategy • Progressive – take action only when price moves against you, small action in parts. • Defensive position – designed to slow rate of losses, and if necessary nullify Delta moves against current position • Used to prevent Large “Blow up” moves , and manage overall Position risk.
Trade Selection Making the Trade Easier
11-Hour Options ™ 2.0 Trade Selection – Making the Trade Easier Over the past 20 months, 11-Hour Options has produced an overall win rate over 95%. • It will would require tremendous time and effort to optimize that even higher. • We want to focus on being more selective in the trades we take, and picking trades that are easier to manage for their duration.
11-Hour Options ™ 2.0 Trade Selection – Making the Trade Easier 11-Hour Options : Trade Hierarchy Checklist • 8 Factors - In order of importance Momentum direction & strength - 60 min chart Price Action setups on 60 min: reversals/breakouts Support/Resistance (S/R) from 8 or 50 Day EMAs On reversals : Fibonacci Retracement levels S/R based on Weekly lows & highs Momentum on Daily chart Price levels from previous day - High & Low *S/R from Monthly lows & highs (rare/important)
11-Hour Options ™ 2.0
11-Hour Options ™ 2.0 Trade Selection – Making the Trade Easier Develop an awareness of Intra-Day price movement. • Range-Bound – When range bound and using the Opening Range criteria, Sell Bear Call CS (bearish) when price is in the “Upper” half of the daily range – Sell Bullish Put CS (bullish) when price is in the “Lower” half of the daily range.
11-Hour Options ™ 2.0
11-Hour Options ™ 2.0 Trade Selection – Making the Trade Easier Extra Tools that can help… • Range-Bound – EveryDay Profits workshop – Fibonacci Trading workshop – Fibonacci Price Retracement levels (std. in TS & TOS) – MQ Pivot Trend – Want more info & buy : support@microquant.com
11-Hour Options ™ 2.0 Trade Selection – Making the Trade Easier Develop an awareness of Intra-Day price movement. • Break-out – When price is breaking higher (from a consolidation, or UP through a resistance level), – Sell Bullish Put CS (bullish), just below consolidation – When price is breaking lower (from a consolidation, or DOWN through a support level) – Sell Bearish Call CS (bearish), just above consolidation
11-Hour Options ™ 2.0
11-Hour Options ™ 2.0 Trade Selection – Making the Trade Easier Extra Tools that can help… • Breakout – EveryDay Profits workshop – MQ VBT Indicator – Fibonacci Price Extension levels (std. in TS & TOS) – MQ Pivot Trend (helps you stay in) – Want more info & buy : support@microquant.com
11-Hour Options ™ 2.0 Trade Selection – Making the Trade Easier Expand out the Entry Trade Timing from 12 Noon • Origin of 12 Noon – The “12 Noon” timing was created so that Credit Spreads were sold “after the Morning Session” – If we waited too late, we’d run into the afternoon session, and it would be likely we would lose some potential premium we could be selling.
11-Hour Options ™ 2.0 Trade Selection – Making the Trade Easier Expand out the Entry Trade Timing from 12 Noon • Expanded Trade Entry +/- 60-90 minutes – This expansion would cover 10:30AM – 1:30PM eastern – Also, you would not have to do all your Credit Spreads at the same time. You can time the entry for each Index/Stock that would be most beneficial to each position. – Usually, bearish trades & bullish trades would be about the same time, because of Index movement
11-Hour Options ™ 2.0
Questions? Trade Selection Making the Trade Easier
Trade Management Trade Management – Adapting & being Flexible to the moving price
11-Hour Options ™ 2.0 Trade Management How to actively “Fix” counter trade price moves • Friday AM Gap: – *** DO NOT *** have Active Stop Loss trade set on online order system. Crazy initial Option Pricing can produce very wide spread pricing, triggering Market purchase order. – Gauge if Gap is due to low pre-market volume, or an overall moderate index gap – Look for 50% and 100% gap fill trades
11-Hour Options ™ 2.0
11-Hour Options ™ 2.0 Trade Management Original recommended stoploss: - Old Stop loss rule = 2x max profit - New : flexible so that loss = 2x – 3x max profit • Example: – $100 target profit = limit risk = -$200 to -$300 – If your premium is $0.30 – 2x “mark” is $0.90 : $0.90-$0.30 = $0.60 – 3x “mark” is $1.20 : $1.20-$0.30 = $0.90
11-Hour Options ™ 2.0 Trade Management When… to use 2xMax, and when to use 3xMax • Use the 3x Max stoploss : Give more wiggle room – Intraday Moves are in a Range-Bound day – When the current adverse price move is about to hit a protective Support/Resistance level – When the adverse price move is about to hit a 50% or 61.8% “protective” Retracement level – When the current move is the “last gasp” move of a clear divergence, about to turn and move favorably
11-Hour Options ™ 2.0
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