A wedge breakout - textbook set up like what I post on X or TikTok / YouTube / Instagram / Facebook - from my books or a re post - identified in real time - with real money - a 5 to 1 set up: 

The way to read this is to look at the underlying technical indicators - I posted yesterday from my book about the pattern rounding out on the bottom - when it is ready to reverse. Here you can see it does that well and breaks out of a wedge formation. This is viewing the technical indicators that you would use on a price chart - on the option itself directly. This is useful once you've already identified a position that will likely move. The option then pays you for - how soon it moves after you get in - and how much it moves - that is key with options. You don't get paid more for a later move - you get paid for unanticipated large moves that are not priced in to the option. 

You can see the entry for this pattern occured around 10:30 eastern time - while the option price made a higher low -...

Lower VWAP to Middle VWAP repeated moves during the day - watch a 2x profit to risk set up repeat over and over from open through the afternoon. In this otherwise hard to trade sideways market - 

You can see the option at the lower VWAP to middle VWAP move 2:1 at 10:00am and again later bounce on Support 3 (S3) and bounce for 2:1 - A significant repeated B rated move throughout the day - 

Here is a unique example where price is already selling off in the pre-market and into the open. Here I use the price rollover strategy to grab 5 to 1 - 

This moves well with the option price going from $10 - (already high and priced in to move down) to $50 on the optimal delta put option. 

Using the lower resistance 4 (R4) level as a profit target. 

$2.50 option ($125 risk) to $5 final value ($250 profit) during a short-term bounce on the Support 3 level - to just over the middle VWAP (volume weighted average price). 

You can see the bullish movement of the RSI in a divergence way - and then the option technical analysis mirroring the price movement on the option: 

Here the move is a rounded bottom - another long identified pattern I've documented and posted about online - TikTok / Instagram - DrLutey - DrMattLutey - Afterlectur3hours or MattTr4d3s Instagram/Tiktok - you can see my professional page (Drmattlutey) hybrid page (DrLutey) and after hours leisure routines pages on both instagram and TikTok - I also have a professional DrMattLutey Facebook business page to go with my MattLutey personal / hybrid professional Facebook with most of the content publicly open. 

Here is the last set up I want to review for you - a rounded bottom set up: 

The result here is the prolonged averaging up on the Relative Strength Index - resetting of the Average Directional Index + Bullish sloping MACD Histogram (Moving Average Convergence Divergence) Investopedia.com / these names to learn more: The resulting option goes from a starting value of $7 to a final value of over $15 making it a sub $400 risk to nearly $800 profit. 

These repeatable patterns a...

Watch a pattern that usually sets up in the late morning - or early afternoon - position it self 15 minutes to close. The result - an upward movement taking an expiring option from $1.35 ($67.50 risk) to $9.85 - almost $500 in profit. That is nearly a 10x return to risk move - all on one little play: 

The important part to catch is the long lower wick forming on the resistance level - the time to close - and an option with some life left in it - 

You can see the clear bullish hammer forming on the left chart + the resistance 4 (R4) level and V-shaped bottom on the RSI (relative Strength Index) + Topped out (maxed out) Average Directional Index (ADX) and bullish sloping Moving Average Convergence Divergence (MACD) Histogram - before crossing bullish - (in bearish territory). That move pops from the lower resistance to middle VWAP - and with a daily expiring option - that move in that time of day results in a 10:1 set up - 

A later afternoon move involves looking at where prices roll over. The prices here use a moving average strategy of a short-term average (9 days) and intermediate term (21 days) following the rules and methodologies outlined in Andrew Aziz - as well as Martin Pring (2002) and other technical analysis books. I learned this particular strategy or set up (without the VWAP) while in college at 21 and interning for a financial planner as a finance major. 

The prices slowly breaking down - finding a floor and breaking out of it are what clearly indicate a downward movement. In my trade book I identify real money instances where this works and produces a 5x profit to risk (A* set up). One example is the Dubai $5,800 profit from $1,600 risk. 

You can see several other strategies identified - from the earlier posts and trade book. Opening range breakdown - a failed reversal and now this rollover - in the direction of the original price movement:

The option - around where I identify the ent...

The Opening Range Break (ORB) is another pattern that is in my tradebook and identified as a 2 to 1 move - it usually does 2x what the initial bet is. My ideal trades are to look for 4:1 or 5:1 + moves but this is worth noting: - this move started right at 9:30 the open - and went from $3.90 (just under $200 risk) to $9.85 just under $500 profit. 

You can see the move is characterized by some forming bearish divergence and prices that sell off steep right at the open - you can forget the reversal plays here and if it is an intact ORB - you definitely want to stay out or away from the reversals - in fact - a continuation or momentum move is the #1 killer of a reversal pattern. 

You can see the overall move does rip and becomes an A* rated move - however most of the ORBs I've documented (like most patterns) fall in the 2:1-3:1 range where 2:1 is a conservative movement where you don't capture the entire move - while 3:1 or 4:1 is the full move from start to finish - while more rare...

This is the middle VWAP reversal (Volume Weighted Average Price) - Investopedia.com / volume weighted average price or 'VWAP' for more information. 

This trade you might think is the exact same one as the day before - it is not. You can see the similar bullish green engulfing candle near the middle VWAP - and again around the same time - and again with the same or similar options movement. This time a just over $3 option doubling to just under $7 - that is $150 risk to $600 profit fast. This is at 9:45 central - 10:45 eastern - notice the time frames on Think or Swim default to Central Time (used for charting) while Interactive Brokers (IBKR) defaults to Eastern Time. 

This is the options chart that corresponds with the move: (note the upper scale in the right above image is incorrect - it shows time values that are later in the day 11:00 am central rather than the market open until that time as shown on the left image). 

This is an otherwise choppy move - a not ideal set up may...

The middle VWAP is another area to enter - you can see after the early morning indecision shown in the previous post - the prices rested on the middle VWAP and lower Camarilla point at the same time + formed the VWAP bounce signal identified already. 

This sits cleanly on the lower resistance level + middle VWAP and corresponds to the period on the 5m (left) chart of around 10:30 central time 11:30 eastern:

This particular late part of the move - on the upper part of the moving average - after the early rejection from the lower VWAP - happens when prices move from the lower support (S3) level to the upper resistance (R3) levels. This late part of the move I have listed as 'B' rated and goes for 2:1 profit to risk. 

Notice the low price - corresponding to the price level near the lower support - and engulfing with an $8 option ($400 cash price) going to $17 - $800 cash price - or doubling the investment in 30 minutes. This is a repeatable set up to watch in the late part of the m...