AMZN PUT Strategy for ThinkorSwim **UPDATED Post**

Hypoluxa

Well-known member
Hello everyone, I have a new PUT strategy and this time its for AMZN! I have tested this one back to January 1st of this year and it has proven itself to be successful, as well as me paper trading it live the past week. Since January 1st, there have been 16, very positive, opportunities for big profit returns. I even did the math for each stock price drop for each of those 16 times and the average AMZN price drop is $32! Before today, since February 1st, there have been 3 opportunities with an average stock price drop of $40! A 4th opportunity fired this morning and it was $15....still very profitable for AMZN.

In this post, I will explain 3 entry signals to watch for, as well as including screenshots of each one: the "standard" signal, a 9:40ET signal and a bounce.

Indicators with settings:
  • 10 Minute timeframe
  • Heikin Ashi candles (I removed my wicks since the indicators work so well)
  • SMA 3 and 9
  • MACD Bollinger Bands 10, 0.5, 9, 16, 36
  • TTM Squeeze 15, 2.3, 2.5, 0.6
    • I just edited this post for this setting....I changed the first TTM number from 14 to 15.
  • DMI Oscillator 75
    • Once loaded, open and edit 2 things: under the "Hist" tab, change the negative color to red and chose NO for "paint bars"
Standard Entry Logic:
  • SMA's must cross first
  • MACDBB: at least one RED dot needs to be clearly under the MACDBB zero line
  • TTM Squeeze: needs to be a RED bar with a GREEN dot on top
  • DMI: needs to have a RED bar
Sometimes you will see the first three indicators fire...but the DMI bars will be green...DO NOT get in that trade until the DMI bars are red...AFTER all other indicators are aligned.

Something new that I also discovered with this one:
If a red dot crosses the MACDBB zero line at exactly 9:30ET OR before 9:30ET (regardless of SMA's crossing) and you have red TTM with green dot and red DMI - do NOT get in the trade! However, if the red dot crosses the MACDBB at 9:40ET and everything else is lined up as needed, it has shown to be safe.....look at yesterday at 9:40ET and today at 9:40ET to see what I mean...and there are a few other examples of this since January 1st. I have attached a screenshot of this as well.
There is also a "bounce" that has happened a couple of times as well. The MACDBB dots will be coming up to the zero line and one will touch or trail along the bottom and then break free to the downside...with all indicators firing. I have also attached a screenshot of this as an example.

Good luck everyone and let me know if you have any questions!

Screenshots below are in this order:
The standard entry - It happened at 14:20 on that screenshot
The 9:40ET entry
The bounce entry - also happened at 14:20 on that screenshot, but on a different day from the one above

K7IVSLa.png


cmNqiv4.png


XiKONrB.png
 
Last edited:

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@Hypoluxa Great write-up...!!! Your setups help reinforce my stance that contrary to there being one-size-fits-all indicator settings, they need to be fined tuned for optimal performance... Whether the difference is price range, volatility, momentum, or other variables, it can be far more beneficial, and profitable, to hone in on a choice few symbols and fine tune indicators for trades as they present themselves... Chasing the entire market for opportunities can be an exercise in futility... Sure, you might find an instrument ready to pop, but if you don't know that instruments performance, intimately, your chances of consistent profits will be diminished... Thanks for sharing...
 
@Hypoluxa Great write-up...!!! Your setups help reinforce my stance that contrary to there being one-size-fits-all indicator settings, they need to be fined tuned for optimal performance... Whether the difference is price range, volatility, momentum, or other variables, it can be far more beneficial, and profitable, to hone in on a choice few symbols and fine tune indicators for trades as they present themselves... Chasing the entire market for opportunities can be an exercise in futility... Sure, you might find an instrument ready to pop, but if you don't know that instruments performance, intimately, your chances of consistent profits will be diminished... Thanks for sharing...
Thank you and you're ALWAYS spot on with your replies! I used to get up every morning and start looking at the biggest PM gainers and then read news, look at each of their charts etc....and WOW how overwhelming and "panicky" that turns out to be! So I then decided to do what you mentioned and I landed with SPX and AMZN. They both offer great volatility and the option premiums move fast and in leaps...just like these two stocks themselves are known to do. I used to trade SPY....but it takes forever to move a whole dollar with that one...as well as many others.
Trimming down and focusing on the everyday "personality" of a stock is step one for success IMO.
 
Great writeup! Would this also be helpful on the call side? Where do you look to exit?
Hi Antbug and thank you! No, this doesn't work for AMZN calls. I have a setup for that, but I'm still trying to tweak it and trust it.
As far as an exit on this AMZN put strategy, I scalp options, so I always seem to exit way too early! But, if you look back to January 1st, you'll see that its good to hold until the MACDBB dots change color or stay red and start to go sideways. The ERGO sometimes looks like something to look at as well for exit.
 
UPDATED TTM SETTING: I just edited the original post for this setting....I changed the first TTM number from 14 to 15.
 
I want to point out, we have been in a bull market for 11 years and several months, pay attention to situational awareness. As a student of the markets, price should be the focus,...
 
Hi @Hypoluxa thanks for sharing...looking forward to paper trading this and seeing what you come out with for a long version!! Keep it up brother, good stuff!
 
Hello everyone, I have a new PUT strategy and this time its for AMZN! I have tested this one back to January 1st of this year and it has proven itself to be successful, as well as me paper trading it live the past week. Since January 1st, there have been 16, very positive, opportunities for big profit returns. I even did the math for each stock price drop for each of those 16 times and the average AMZN price drop is $32! Before today, since February 1st, there have been 3 opportunities with an average stock price drop of $40! A 4th opportunity fired this morning and it was $15....still very profitable for AMZN.

In this post, I will explain 3 entry signals to watch for, as well as including screenshots of each one: the "standard" signal, a 9:40ET signal and a bounce.

Indicators with settings:
  • 10 Minute timeframe
  • Heikin Ashi candles (I removed my wicks since the indicators work so well)
  • SMA 3 and 9
  • MACD Bollinger Bands 10, 0.5, 9, 16, 36
  • TTM Squeeze 15, 2.3, 2.5, 0.6
    • I just edited this post for this setting....I changed the first TTM number from 14 to 15.
  • DMI Oscillator 75
    • Once loaded, open and edit 2 things: under the "Hist" tab, change the negative color to red and chose NO for "paint bars"
Standard Entry Logic:
  • SMA's must cross first
  • MACDBB: at least one RED dot needs to be clearly under the MACDBB zero line
  • TTM Squeeze: needs to be a RED bar with a GREEN dot on top
  • DMI: needs to have a RED bar
Sometimes you will see the first three indicators fire...but the DMI bars will be green...DO NOT get in that trade until the DMI bars are red...AFTER all other indicators are aligned.

Something new that I also discovered with this one:
If a red dot crosses the MACDBB zero line at exactly 9:30ET OR before 9:30ET (regardless of SMA's crossing) and you have red TTM with green dot and red DMI - do NOT get in the trade! However, if the red dot crosses the MACDBB at 9:40ET and everything else is lined up as needed, it has shown to be safe.....look at yesterday at 9:40ET and today at 9:40ET to see what I mean...and there are a few other examples of this since January 1st. I have attached a screenshot of this as well.
There is also a "bounce" that has happened a couple of times as well. The MACDBB dots will be coming up to the zero line and one will touch or trail along the bottom and then break free to the downside...with all indicators firing. I have also attached a screenshot of this as an example.

Good luck everyone and let me know if you have any questions!

Screenshots below are in this order:
The standard entry - It happened at 14:20 on that screenshot
The 9:40ET entry
The bounce entry - also happened at 14:20 on that screenshot, but on a different day from the one above

K7IVSLa.png


cmNqiv4.png


XiKONrB.png
can you share your setup as a link for this ?
 
can you share your setup as a link for this ?

@Hypoluxa provided all of the indicator names and settings in the first post... What else do you need...??? Just load the indicators mentioned and make the settings adjustments described... You shouldn't need more hand-holding than that... Don't be lazy... Do you want us to trade for you as well...??? Think about it... It's actually very similar to @Hypoluxa's SPX Strategy...
 
So, you guys using chart with extended hours on? Since I could not see entry @10 am, this morning,(unless I am messed up with some setting).
 

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