AMZN PUT Strategy for ThinkorSwim **UPDATED Post**

[rad14733]

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).

Personally, I turn on Extended Hours prior to regular market hours, while I'm making my game plan for the day, and then turn them off during trading hours for more accurate indicator performance... Extended Hours can skew some indicator readings beyond my comfort zone due to the reduced activity during that time span... That's generally the case for all but the most readily traded 24H securities... YMMV...

 

[tpusmn]

Got a put @ 10.10 EST. Got $1.

can you get the screen shot of placing the order for the put or call with Delta and Open Interest position you place? that would be very helpful.
I'm new learner for option trading. Because when I see in the like amzn and spx option chain there is premium are too high for 1 contract.

 

[tom23824]

can you get the screen shot of placing the order for the put or call with Delta and Open Interest position you place? that would be very helpful.
I'm new learner for option trading. Because when I see in the like amzn and spx option chain there is premium are too high for 1 contract.

@tpusmn The strategy suyggests for option with Delta .35 or above. I would not go beyond .50 on the option, pre-trade.
I do not look at OI.
Set up the strategy and scroll back to yesterday's 10.10AM EST. You will not miss the signal! If you still have questions, please let us know.

 

[tpusmn]

@tpusmn The strategy suyggests for option with Delta .35 or above. I would not go beyond .50 on the option, pre-trade.
I do not look at OI.
Set up the strategy and scroll back to yesterday's 10.10AM EST. You will not miss the signal! If you still have questions, please let us know.

thanks

 

[Hypoluxa]

Did anyone get in this major drop? It crossed the MACDBB at 9:40 and that is the safe time to get in that I've posted about. Its down $70 since then.

 

[tom23824]

thanks

thanks

hope this helps!

 

[Hypoluxa]

hope this helps!

AWESOME!!

 

[rad14733]

can you get the screen shot of placing the order for the put or call with Delta and Open Interest position you place? that would be very helpful.
I'm new learner for option trading. Because when I see in the like amzn and spx option chain there is premium are too high for 1 contract.

If AMZN and SPX are too rich for your blood, and they are also above my personal comfort zone, then go with a security that has cheaper options... The Delta concept will still be the same regardless of the security, however... Now, that being said, you won't be able to necessarily use the same settings as have been fine tuned for AMZN, and also for SPX in its own topic... Adjustments may or may not be required...

What really helps more than anything is to get to know, intimately, the securities you intend to scalp options for... I could narrow my watchlist to 4 - 6 symbols, at most, and almost always be able to find a trade... But some days just aren't good days for scalping unless you want to spend more time searching for an ideal trade than actually trading... I usually know before the markets open which symbols I'll be trading... And some days, like yesterday and today, I could scalp Calls and Puts a couple times per symbol... At least for the symbols in my watchlist...

 

[pga0008]

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
  • This is a custom setup that Ben created a while back. Here's the link to that post: https://usethinkscript.com/threads/macd-with-bollinger-bands-indicator-for-thinkorswim.287/
  • Once loaded, you will need to edit the MACDBB settings as such: Uncheck "show plot" for BB upper, BB lower and BB midline
• 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

im going to try this tomorrow very interested to tweak for larger caps like Amazon. Are you buying weeklies at the prior day close for the Put then?

 

[Hypoluxa]

im going to try this tomorrow very interested to tweak for larger caps like Amazon. Are you buying weeklies at the prior day close for the Put then?

I haven't traded AMZN in a while....but i always buy the current week expiration

 

[pga0008]

I haven't traded AMZN in a while....but i always buy the current week expiration

Have you used this on other stocks? I reviewed it today on Tesla and roku and it seemed to work well

 

[Hypoluxa]

Have you used this on other stocks? I reviewed it today on Tesla and roku and it seemed to work well

100% AMZN only. But tweak as you like.

 

[pga0008]

100% AMZN only. But tweak as you like.

Ok you just had said you hadn’t traded Amazon in a while so was curious

 

[Hypoluxa]

Ok you just had said you hadn’t traded Amazon in a while so was curious

Correct. But the setup at that time was only designed based off AMZN movement....no others.

 

[sean1970ss]

Props that is really cool I am going to try it out. I am no programmer but admire the hard work.

 

[NatalieHollis]

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
  • This is a custom setup that Ben created a while back. Here's the link to that post: https://usethinkscript.com/threads/macd-with-bollinger-bands-indicator-for-thinkorswim.287/
  • Once loaded, you will need to edit the MACDBB settings as such: Uncheck "show plot" for BB upper, BB lower and BB midline
• 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

Thanks for posting this way back when... I got a lot out of it. But I was very glad I had it in the late fall of last year when the dumpage started, I made some tweaks and it has worked very well, particularly on Nasdaq.

 

[Deltapants]

Thanks for posting this way back when... I got a lot out of it. But I was very glad I had it in the late fall of last year when the dumpage started, I made some tweaks and it has worked very well, particularly on Nasdaq.

Mind sharing the tweeks?