Pre-Sales VIP Questions

Learnbot

Active member
I am not VIP member yet, however, thinking about subscribing to your discord and obtaining the "buy the dip" indicator. I just wanted to check something before I subscribe to VIP, would you be able to post an example of 1min chart for TSLA, Apple, ZM or whatever else stock you see fit (not penny stocks plz since I am not that educated to trade small caps yet). I wanted to see if Buy the Dip works for day trading as well as swing.

Edit: This thread has gotten very long. Added some info below for easier access to information.
Summary:
https://usethinkscript.com/threads/buy-the-dip-vip-indicator-question.3790/page-23#post-89427

Helpful links for anyone interested in seeing how VIP members are using the BTD indicator to trade:
Customer's reviews:
More reviews can be found here: https://usethinkscript.com/threads/buy-the-dip-indicator-for-thinkorswim.3553/post-34186
 
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Hi all,

I am new here and would like some guidance. I saw some good indicators for scalping options posted here by our helpful forum family :)

May I know what is the best DTE (Days to Expiration) when scalping options?

Also is Buy the Dip indicator good for buying options? Any successful stories on this as I am sitting on the fence now.

Lastly is there any good indicators for selling options especially Puts?

Thank you all.....
 

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@Gellidus If you are looking to scalp options then weeklies would probably be work best... I scalp current month expiration and weeklies... Those have the most volatility but can turn a profit into a loss quick if you aren't paying close attention... I won't even leave my trade screen while in a scalp trade... YMMV...
 
Thank you Rad.

I am slightly overwhelm with so many good indicators here with paper trading.... I am still waiting for my account to be approved. So many limitations with paper trade and It does not allow me to scan studies :(

If Buy the Dip can help in buying calls. Is there anany
 
Hello All,

I'm new on the site. I'm thinking of getting a VIP membership but thought of clarifying somethings before I sign up for it.
I have read some of the posts here and all or most here seem like short term and swing traders; maybe I'm wrong. My prospect and time frame is long term due to my full time job. It is tempting to try swing trading with the fancy indicators that are made available here. This is a great site @BenTen :cool:

I have been using TOS for ~4 years but I got to know about custom ToS scripts and this site only few weeks ago :confused:. I use generic studies in the ToS platform like MACD, RSI, volume, BB etc. It takes a lot of time for me to research my watch list against the charts to do an entry. Are there any custom indicators/studies for long term traders and for (> 1 or maybe 2 months terms) that has been reliable in the past? I'm currently testing trendPainter and bull_bear flag. They seem to work but at times in the morning, they both seem to paint a little different picture(for some stocks) neutral vs bull when I stack them side by side. Sometimes they are stuck at "loading". I like the true_momentum_oscillator.

Thanks again for this community!
 
@jauyzed Welcome to our community. Glad to hear that you're interested in joining VIP.

Based on the info you provided, it sounds like you would prefer to swing trade due to your job. I think our BTD indicator is perfect for that. I'm a swing trader myself. In addition to the actual indicator, you'll also get the code to add to your watchlist column, scanner, etc.

I hope that helps.
 
@MerryDay , i read with interest the convo b/w you and @Veasna . in this post, do you mean to say that the BTD screens for stocks with good fundamentals in addition to sound technical setups?

Friends, out of curiosity - who is the author of the BTD? or is it a team effort?
 
@MerryDay ok thanks. in my own experience with using technical scanners, one of the KEY CHALLENGES is the scanner typically mostly throws up (assuming going long) securities which are beaten down due to degradation in fundamentals. so it is really up to the use to decipher which to use.

Speaking of which - are there any good fundamental screeners available?
 
Hi Ben,

Any good example on how to use Buy the Dip with Option buying. Are there any other indicators that works well with BTD?

Also is BTD good for scalping option?

Regards,
Gellidus
 
@Gellidus I only use BTD for swing trading. If you want to see how others are using it to scalp, you can check out some of the comments on the first page of this thread.
 
@Gellidus here is an example how I use BTD for both day and swing trading. It all depends on what your profit taking outlook is. I'd like to enter a swing position on an intraday timeframe and feel more comfortable ending the day already with a book profit than in the minus.

My preferred trading style right now is to sell mostly weekly or monthly puts - basically a synthetic covered call position without the capital requirements of actually owning the shares. Today I did some trades on NIO and also PLTR. I'll paste the PLTR example of using BTD on a 5 minute chart.

Why PLTR? High implied volatility to capture some good options premium and super high share volume giving you very tight options B/A spreads. In this example I sold PLTR puts strike $24.5 12/24 expiration. You'll notice in one example I sold prior to the BTD signal, reason being TBD was so negative that on the next up move it had to shoot up and I wanted to sell close to the max premium possible. I could have closed the position at end of day but I would rather have a chance to collect some or all of the options premium until next week's expiration.

(trying to figure out how to paste the image from my desktop here) - hope this works

eSY4HQ2.png
 
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Ok here another example also from 12/16/20. I looked at my timestamp and actually shows:

12/16/2020 10:18:36 (PST) = 07:18:36 (EST)Sold 1 WKHS Dec 24 2020 20.0 Put @ 0.85

I had watched WKHS come down and was watching the BTD indicator go far negative an decided to wait to the first sign of an upward pop. You'll see I entered a bit early before the signal but that gave me pretty much the perfect entry for that day.

yJtY7wt.png
 
Hi Ben and PJK,

Thank you for sharing. Especially PJK, really appreciate and happy to be in this community. I am pretty new to trading and have only started with Options with a small account. Things are not going to well for me however I shall persevere...... Too many indicators and too overwhelm :)

I like the idea of selling options but with a small account, I am trying to scalp instead.

@pjk , can i check with you on the following:

1) Are you selling naked puts once the indicator of the BTD appear?
2) What is the ImpVolatility indicator with RSI are you using? Can share the link?
3) How do you scan for optional stocks with high Volatility?

Appreciate your help and pointers on this.

Thank you.

regards,
Gellidus
 
@Gellidus, I'd be happy to share some more examples. I mostly sell put options - as I said I came into this through the covered call angle and selling put options has the same advantages of covered calls without tying up the capital having it available for other nice intraday or trade ideas, When I sell puts, I go by the mantra that I would not mind owning those particular shares - with the put discount. I also sell a few naked calls - almost always in combination of a credit straddle or strangle (I did a god number on BA although the IV there is lower). I actually got into this due to NKLA earlier in the year and made huge profits due to the insanely high put premiums (they had ~300% IV at some points) even when NKLA dropped. The NKLA party was over when their warrants expired and the put premiums dropped and the risk/reward was not there anymore.

The advantage of selling puts on dips with strike prices at support levels is that even if you are wrong and the stock still goes down it often bounces or at least hangs around the support level and you still end up making the max profit. In some cases it goes through support and you might still break-even or slight loss. However in that case future put options will be all the more expensive and I then roll forward to the next week/period for even more jiucy premiums. A swing trade doesn't always work out directly in a week but often the following few weeks. Basically if you enter at very low RSI/Bollinger levels with BTD and at support you move the probability in your favor. By selling out of the money puts (I sometimes also sell ITM puts for extra protection) you further move the probability to your side. Going by protection over max profits has worked well.

To your questions:
1) Are you selling naked puts once the indicator of the BTD appear? Sort of but not always. I have given the explanations with the images on reasonings for trade entry.
2) What is the ImpVolatility indicator with RSI are you using? Can share the link? It is not an indicator. I ran out of room on the TOS GUI. No need for the volatility to take up an extra row by itself so I plotted it on top of RSI. It got crowded when on top of other rows like MACD...I mainly enter on price action but do keep an eye on volatility. I have entered some trades when IV spiked (especially when selling credit straddles and strangles) since when selling options premium IV outweighs smaller price swings quickly (there are a number of good Youtube videos on that effect).
3) How do you scan for optional stocks with high Volatility? Yes good question. I'll paste my TOS scan for that. I am then sorting out by stocks that are near support and also have weekly options (I haven't found a parameter to search for weekly options) since that allows for a lot more possibilities and more deterministic outcome.

Also, for every trade I have a live Excel spreadsheet that gets the feed from TOS with the underlying price and all relevant options parameters and greeks. This is basically a must when watching call/put spreads, straddles and strangles and to decide when to close early. It's also nice to see profits rise in real-time due to time-decay. I am also tracking the cost basis of the combined trade. Sometimes a trade sequence stretches for weeks when I keep selling repeated puts or calls and each premium goes against the cost basis until finally the put option expires worthless or the covered call gets called - typically for a profit of the whole sequence. The nice things with covered calls/puts is that if the stock goes down I'll keep lowering the cost basis on a weekly basis with new premiums until you almost force a profit.

Enough of the background, I have picked out another example - this time of GOLD (it had ~40% IV in November when I traded it - so not super high but at the end of November with everything rallying I frankly was running a bit short on good trade ideas).
I'll show two charts: #1 shows the longer support of GOLD from 5/28 at ~22.50 (nearest strike price option). With that info in mind I watched as the RSI dropped. I often start scanning for RSI<40 on TOS to see which stocks are becoming possible candidates. As said at the end of Nov with a full rally going on there weren't many candidates but GOLD was one of them.
Trade entry: I saw GOLD show up on my daily RSI scan for a few days and was looking for a good entry. BTD had already flashed multiple buy signals and BTD_percentile was negative waiting for a pop but I was waiting for RSI to definitely be below 30 but show some signs of stabilizing. On 11/24 that happened and I used the drop in the last trading hour for entry. Intraday RSI<30, BTD around 0 and BTD_percentile again negative and waiting for a pop up. I'll paste the trade timestamps below.
11/24/2020 15:44:29 (-3h)Sold 1 GOLD Dec 4 2020 22.5 Put @ 0.44
43.34​
11/24/2020 15:41:39 (-3h)Sold 1 GOLD Dec 4 2020 22.5 Put @ 0.42
41.34​
11/24/2020 15:41:11 (-3h)Sold 1 GOLD Dec 4 2020 22.5 Put @ 0.41
40.34​
12/07/2020 00:00:01 (-3h) REMOVAL OF OPTION DUE TO EXPIRATION (0GOLD.X400022500)
0.00​

Outcome: The GOLD puts nicely expired on 12/4 and I could keep the full premium. Note, we are not talking about huge amounts here but I mostly go by steady small amounts and those add up very nicely to a big amount in the end. GOLD has since then been bumping around $23 as shown on the chart and maybe there's another entry again but RSI is higher now. If BTD flashes another buy signal I might look into it.

rzSslLz.png


QdUAkh2.png


High IV stock scan (I was originally looking for individual options in this scan - it might be time to take out the options specific parameters and search by the stock only):
vV6h1No.png
 
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@Gellidus, your question about finding High IV stocks kept me noticing that unfortunately somehow the TOS filter for high IV doesn't work; while you find some high IV stocks it mixes in low IV stocks for some reason. Based on your question, I looked into this a bit more and I have now moved to a systematic method - so thanks for asking this question. While the TOS scan filter doesn't work for filtering IV, the IV information is also contained in the column 'Vol Index'. When I compared it, it is the exact same number as in 'Impl Vol' so no need for both. You can easily export the live data into Excel and it updated in real-time (also shown in screenshot). In Excel then you simply sort by the 'Vol Index' column.

klv7UBS.png
 

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