Interactive Trading Tools

Use these interactive tools to help implement the high-confidence options trading strategy.

Trade Setup Visualizer

Explore the visual patterns and characteristics of our high-confidence setups.

Collapsible Strategy Components

Click on each section to expand and view detailed information.

META VolatilityExpansion (Short) - 84.62% Win Rate

This setup involves identifying periods of contracting volatility in META followed by expansion, entering short positions (put options) when specific technical conditions are met.

Entry Criteria:

  • Bollinger Band width contracting for exactly 5-7 consecutive days
  • Current Bollinger Band width in the bottom 15% of its 3-month range
  • Volume declining for 5 consecutive days, with current volume at least 30% below 20-day average
  • Price must be in the upper 1/3 of the Bollinger Band range, but below the upper band
  • RSI between 50-60

Exit Criteria:

  • Profit Target: 15% gain on option position
  • Stop Loss: 15% loss on option position
  • Time-Based Exit: 2-3 days maximum holding period
  • Technical Exit: Exit if price breaks above the upper Bollinger Band

META SupportBounce (Long) - 100% Win Rate

This setup combines META's strong overall performance with the SupportBounce setup. It involves identifying when META approaches significant support levels with positive divergence, entering long positions (call options).

Entry Criteria:

  • Price within 1% of a major support level validated by at least 2 previous bounces
  • RSI showing positive divergence with at least 3 degrees of separation
  • Volume increasing for 3 consecutive days as price approaches support
  • Price must remain above the 50-day moving average

Exit Criteria:

  • Profit Target: 15% gain on option position
  • Stop Loss: 15% loss on option position
  • Time-Based Exit: 2-3 days maximum holding period
  • Technical Exit: Exit if price breaks below the support level that triggered entry

QQQ VolatilityExpansion (Short) - 100% Win Rate

This setup achieved the highest win rate in our backtest. It involves identifying periods of contracting volatility in QQQ followed by expansion, entering short positions (put options) when specific technical conditions are met.

Entry Criteria:

  • Bollinger Band width contracting for exactly 5-7 consecutive days
  • Current Bollinger Band width in the bottom 15% of its 3-month range
  • Volume declining for 5 consecutive days, with current volume at least 30% below 20-day average
  • Price must be in the upper 1/3 of the Bollinger Band range, but below the upper band
  • RSI between 50-60

Exit Criteria:

  • Profit Target: 15% gain on option position
  • Stop Loss: 15% loss on option position
  • Time-Based Exit: 2-3 days maximum holding period
  • Technical Exit: Exit if price breaks above the upper Bollinger Band

Interactive Glossary with Tooltips

Hover over the highlighted terms to see definitions.

Key Options Trading Terms

Understanding these terms is essential for implementing the high-confidence options trading strategy:

  • Delta: Our strategy targets options with a delta between 0.45-0.55 for optimal balance of risk and reward.
  • Gamma: We avoid options with extremely high gamma to reduce risk of rapid price changes.
  • Vega: Our strategy benefits from positive vega during volatility expansion phases.
  • Theta: We minimize theta risk by avoiding options with less than 7 days to expiration.
  • Implied Volatility (IV): Our strategy targets options when IV is in the bottom 20% of its 3-month range for volatility expansion setups.
  • Bid-Ask Spread: We only trade options with a bid-ask spread less than 3% of the option price to ensure liquidity.
  • Open Interest: Our strategy requires a minimum open interest of 500 contracts to ensure sufficient liquidity.
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