Vexly Flashcards
Pluto is what timeframe?
shorter
Jupyter is what timeframe?
Longer
Pluto and Jupyter best combined with?
Vola Models
When both indicators like Vola and Pluto/Jupyter say buy then what?
buy
Pluto/Jupyter can sometimes precede the what?
the moves that will happen a few days after
What are the dash lines in the p/j chart?
slightly less confidence (54% confidence)
What is the solid line in p/j charts?
higher confidence (78% confidence)
you can maintain bias as long as p/j is
above or below dotted lines
when pluto touches purple we go for?
short trades
when positioning is on the market maker side is overstretched what does that mean?
you buy a call, the market maker then has to buy to hedge and with respect to the deritivites to the sold call position.
They might be short gamma, or positive theta, the option would still be not in the money, so they hedge less and less.
.1 losing 10 deltas, so they need to sell 10 of that initial buy.
Charm hedge with respect to that, vanna, etc.
for the market maker tool, you will get to a point where everyone buys calls, with the same strike, what happens?
when it’s looked when everyone considers rolling to a different day, then the market makers who are net delta, will short relative to the position
Now people at a higher strike call are losing money especially if the call is being shorted
When the amount of positioning by strike for example 416 is being sold, then what happens to 417, 418?
It creates a net sell effect, that net sell effect is usually large enough to create cause a sell.
And when that happens and you see numbers like 300mil or 400mil up, Doc considers them a wall of china type of thing, its not gonna be broken.
when looking to place a position where would you place a limit order?
important information to know
54.1% success rate at the dash lines for buy and sell in terms of probability
72.3% success rate at the solid lines for buy and sell in terms of probability
Average MAE 6p MFE 23P
Average Hold Period 2.7 days for maximum benefit
How early is the signal? - range between 5 mins to 5 days (median is 2.1 days)
Combine these with VOLAs and peak gamma levels (just know what the levels are to identify) support and resistance
skewness -50 do what?
sell puts, and/or buy calls