ATR

TheCinemaGod

I use webull to plan my entries using MACD, RSI, and ATR indicators for extra guidance https://preview.redd.it/8euzfu1i3kaf1.jpeg?width=1125&format=pjpg&auto=webp&s=c50ba41e7c058cef720aef0b04341920c050d657

SpectacularRedditor

Yeah, ATR is going down. Doesn't matter, I'm going to do OK no matter what this stock does.

Ultimus_Omegus

I use Think or Swim, I don’t use any indicators I do use ATR for a stop loss on futures directional contract trades (not the options on futures)

Ultimus_Omegus

I like Think or Swim and I don’t use any indicators besides the IV percentile in it sometimes. (I use ATR for a specific futures contract type of trading, the risk management portion but not for options) My stock options I can hold for days to weeks. People will also tell you trading you loss your money and such too, Guns are dangerous too and so are machine guns. If you learn how to properly use it can be a deadly weapon but someone inexperienced could end up hurting themselves. Trading is no different

MCODYG

if you got assigned on either of those would you hold them or use something like 2x ATR as a stop and hold to see what happens?

Adept-Mud-422

Short netflix. Volume leader guy on X tracked 2 large prints. The OI is starting to skew to puts. Be careful that the spreads are stupid wide and only get worse with farther OTM. If you skeerd, you can swing NFXS for an inverse move. Nat gas has been making some larger than ATR moves of late. That high to low on Friday was almost 9% If they pump it on some bullshit war narrative, just know that it has next to nothing to do with the war. The less we can export, the more of it piles up here. Don't take your eyes off of BTC. It'll stop bleeding somewhere, start to turn, then set up new longs

the_macagameianut

Agreed but it’s a great daytrade if you know how to read price action and can catch a trend day because it has a huge ATR. Hell: I made a few hundred in three candles today with a single weekly option catching that opening drop into the gap. Shoulda stayed but I thought we’d get back through wvap on that first bounce. Looks like a great short if it stays in the gap and SPY continues drifting down.

chuckremes

You're asking the right questions. I take the ATR number and convert it to a percentage daily move. This normalizes the number so I can compare across symbols and markets such as /ES vs /GC. I use excel to make a histogram and compare them. For /GC here, I mainly wanted to make sure that the premium I can collect from a 7DTE ATM Put is 70% (or better) compared to the ATR. Here (34/73 * 100) it's equal to 73%, so that's good enough. The histogram also shows me the daily return distribution. I can see that /GC has *more days of positive returns* than /ES. Further, I can see the frequency of the negative days and their magnitude. Overall, /GC has fewer negative days than /ES and their overall magnitude is smaller. Good for selling Puts! ATR for GLD and IAU should be similar as all of the gold markets are highly correlated. I wouldn't bother computing those separately unless you plan to trade those instead. Futures and FOPs (Future OPtions) have a lot of embedded leverage. They are always going to beat stocks and ETFs. Remember that leverage cuts both ways. Manage your buying power closely or suffer.

TheInkDon1

Hi, thanks for the reply. I think. I know what Average True Range is, but do you use it to inform your trading? Do you look at the 46 number and go, "Wow! That's really not volatile!" I have no feel for that. Do you know what the ATR is for GLD or IAU? A 7DTE ATM Put selling for 34 against 19k BPE is 17.9%, very impressive.

chuckremes

Here's what my analysis on GC has shown. In 2025, average ATR is 46 and median is 39. Biggest daily move was $145 or about -3.6%. A 7DTE ATM Put provides around $34 premium (so $3400) while buying power reduction is roughly $19,000. If you look to pull $10-$15 out, you need a $20-35 move up or 3-5 days of stagnation (for theta to rot it away). Average ATR indicates you'll probably close a Put or two every day or every other day. On a percentage basis, it is much less volatile than equities. Good candidate for hold-the-strike if you have the bankroll... the micro gold (/MGC) doesn't have options so you have to play in the full contract along with its $300k+ notional value. Fun!

Equivalent-Badger439

I really like this idea. However, I would recommend looking for a trigger before entering the position. I believe August provides ample time for a potential upward move. We've seen two previous bounces in this zone, at 226 and 234. The point of control is around 310, indicating that LULU is likely to head back up there eventually. Given the $62 monthly ATR, this move could occur within 30 days, which aligns well with your chosen expiration date. Personally, I would feel more comfortable with December calls. Nonetheless, I believe it could at least reach the $270-$290 range by August. Good luck!

ThisIsDadLife

Since I don’t understand any of this, I had ChatGPT analyze it for me: Your swing trade strategy: 1. Stock is trending up 2. It’s not near all-time highs (ATH) 3. Break of 200 EMA on the 4-hour chart …is a solid attempt to catch medium-term momentum in a “value zone” within an uptrend. Here’s a breakdown of the logic and how it might perform, along with strengths and risks: ⸻ 🔍 Strategy Breakdown 1. “Stock is trending up” • Why it’s good: You’re aligning with the prevailing market direction. Trend-following generally outperforms countertrend trading over time. • How to define it: Make sure you have an objective rule (e.g. price above 50 and 200 EMA on daily, higher highs/lows, etc.). 2. “Not near all-time highs” • Why it’s good: Stocks near ATH often face psychological resistance and may be extended/overbought. You’re aiming to enter on a pullback. • Interpretation: You’re likely catching a dip or consolidation phase in an uptrend—often a safer entry with more room for upside. 3. “Break of 200 EMA on 4hr chart” • Key signal: You’re using the 200 EMA as dynamic resistance, and a break above it as a bullish trigger. • Why 4-hour? It gives a balance between daily (slow) and 1-hour (noisy). This suggests you’re targeting swing moves (1–10 days). • Potential confirmation: Volume spike or RSI divergence could help confirm the move. ⸻ ✅ Strengths of the Strategy • Combines multiple timeframes: You’re evaluating trend direction (likely from daily or weekly) and using 4H for entry. • Buys weakness in strength: Not chasing highs—often results in better risk/reward. • Uses EMA, a proven dynamic support/resistance: 200 EMA on 4H is widely respected by traders. ⸻ ⚠️ Risks and Weaknesses 1. False breakouts: A break of the 200 EMA may fail. Price can whipsaw around this level, especially in low volume or choppy markets. 2. No stop-loss/exit rule specified: Without risk management, even good setups can become costly. 3. Earnings or macro events: Can override technical patterns. Always check calendar before entering. 4. No volume filter: You may be buying into illiquid or manipulated stocks. Consider adding a volume threshold. 5. Ambiguity in “not near ATH”: How far from ATH is enough? A clear metric (e.g. “20% below ATH”) helps with consistency. ⸻ 🛠️ Suggestions to Improve • Add a volume confirmation: E.g. “Break above 200 EMA with 1.5x average volume.” • Define trend criteria more clearly (e.g. price above 50/100/200 EMA on daily). • Include entry, stop-loss, and profit target rules (e.g. ATR-based). • Consider RSI or MACD to confirm momentum shift at 200 EMA breakout. • Backtest this setup on 10–20 charts to see win rate and avg return. ⸻ 🧪 Example Setup: • Trend: Price above daily 50 and 200 EMA • Pullback: Stock is 10–20% below ATH • Entry: Bullish candle closes above 200 EMA on 4H with volume >1.5x average • Stop: Below recent swing low or 1 ATR • Target: Next resistance or 2:1 risk/reward

Bright-Advantage-825

Been actively trading options for over 6 years now. My most successful strategies? Directional spreads in momentum markets, straddles during event-driven volatility, and systematic credit spreads in consolidation phases.I pivoted from naked options to defined-risk plays after realising how skewed the risk-reward was. I follow sector rotation, OI shifts, and global risk sentiment (VIX, INR/USD, US yields). For exits, I use ATR-based targets or IV crush zones post-event.The biggest game changer? Having a clear rule-based system, reviewing trades weekly, and attending strategy events to stay current.For anyone serious, I highly recommend the 5paisa Options Convention in Chennai,Pondicherry,Bangalore,Mysore,Hyderabad,Mumbai . It’s a great blend of veteran insights and real market application—not fluff. Here's the link: https://www.5paisa.com/blog/options-convention-2025-schedule

the_macagameianut

🤔 indeed…that stock can fly. Huge ATR.

NH_trader

I use Think or Swim and I like their charts. They show a nice visual indicator of earnings date so I can avoid that. I also look at the MACD+RSI to get a quick feel for overbought/oversold. I also added a script to give the current ATR (average true range) number so I can then go to the chain with some knowledge of what I'm looking for. Once a trade is on, I go back to the chart and quickly add a price line for the strike and dates. Then each day I can quickly scroll through the charts for a visualization of how the trades are holding up. BTW, I trade weeklies and have about 10 trades open so the charts are helpful for visualizing my status.

Zeppu

I considered it, but if it is based on ATR, I don't think it would be useful on timeframes other than 1D.

Bobrot22

Herein lies the great options conundrum. If the underlying doesn't move, the options will be worthless. There has to be some risk involved for there to be an opportunity to profit. Take some times and learn about IV Rank and modifying your options strategy based on volatility. Don't ignore other measures like ATR and ADR as well.

esInvests

market rhetoric is funny because it's always something. i do think we're in a more range driven market for sure, and we can see this represented in total ranges, and shorter term volatility metrics like ADR and ATR. that said, these are the kinds of markets that tend to be the most profitable for options traders because there is actually volatility - which we are ultimately slaves to. the trick is having a well rounded toolbox to pull from. traders that struggle in these markets tend to have one or two things they do which is to their own detriment. one of the few benefits of being a retail trader is our ability to rapidly reposition and change our approach quickly (for most, this is more of a drawback as they'll meander, strategy hop, etc - but in reality, for those that can manage this, it's a benefit). with my typical approach, I am trying to measure the market and make my portfolio fit appropriately. so with current markets that means im scaling back my core allocation (longer term momentum strategies) and leaning more heavily into shorter term strategies (breakouts/downs, PEAD, mean reversion, relative vol, etc) and uncorrelated returns (earnings, biotech, etc).

Country_Gravy420

I use a 9 day and 20 day EMA crossover. But puts if it is a bearish crossover under VWAP, calls if it is a bullish crossover above VWAP. I use Bollinger Bands on VIX to look for reversals and breakouts. I confirm bullish or bearish using MACD, RSI, and I look at ATR, but those are secondary to the other indicators. When the indicators line up, I look for an option contract that is around $10. I try to get contacts that have a strike that is a multiple of 25. I find those give higher liquidity. I buy 10 contracts, around $10,000, give it take about $1000. When I buy the contract, I use a conditional order that puts a trailing stop at $1.00 based on the bid. I used to use the last price, but these contracts move so fast that it would go past my stop. I then set up a replacement order on the trailing stop, which changes it to $0.10 when I click place order. I then place this order when I get to my take profit, usually around $1500-$2000. That's it. It's basic. I backtested. My win rate is over 50%, and my RR is about 1:2.

kingfiend23

It’ll be hard due to the ATR but also spy and qqq would have to have a red day all possible but it most definitely can hit 312 without major resistance 320 is where I’m looking to get in puts if market conditions are right

Immediate-Sky9959

Your command of Statistical analysis is simply elementary at best. AH,, the scalping expert. 1 minute charts at the very best illiminate at best Micro Levels of price fluctuations. Using ATR generally is a decent indicator for minute intervals. And by the way 1-minute charts for BTC is ridiculous no matter what your direction is.

Bobrot22

I'm not sure you're understanding what I'm laying down. I could give you some settings, but when the current market volatility changes, they'll likely not work anymore and then you'll be mad at me. Instead, I'll give you a process for your own experimentation. I use a combination of ATR and VIX to decide on the underlying's volatility. You could use others, such as IV Rank, etc. However, you can look at a combination of these indicators for any underlying and make a decision on whether it is in a historically high, medium, or low volatility market. You then pick a direction for your underlying based on other indicators to include a mix of indicator types (cycle, trend, etc) and then choose an options strategy based on that conclusion (divided into bullish, bearish, and neutral). More advanced option strategies can usually be divided up into low or high bullishness or bearishness. I generally use SPX, but if you're just starting out, you might consider XSP, or maybe some SPDR etfs (no ODTE here, though) instead for less risk until you nail down a process that works for you.

LarryStink

I typically target a spread around the expected move for the expiration period sometimes a little beyond expected move sometimes a little less. The expected move is a theoretical number implied by the options market. My broker offers it for me but you can do a easy calculation by adding the at the money straddle premium. Theoritcal Example: spy 5dte atm call is 5$  and atm puts are 5.5$ so the 5day expected move is 10.5$  So I would place my spread strikes around 8$ out of the money for the long option and 10-12$ otm for the short option depending on how much I believe volatility is mispriced. These trades typically have a 1:3 to 1:5 risk to reward.  As far as what im looking for to place the trade, I try to line up the charts, looking for a type of consolidation such as a flag, pennant, head and shoulders, double top/bottom, to me it's all the same. Its price equilibrium and a distribution/accumulation of positioning. Once these areas are formed I set an alert and wait for price to confirm a breakout of the structure and this is where I enter the trade.  I will say thay while I say to ignore news and media, im specifically referring to narratives. I dont care what the narrative is i care what the price is showing me. Often times they are conflicting and only after a move has happened does the narrative align with price. Its hindsight. The macro economic data is a little different and I think its important to watch and factor in to the trade plan. Will I be holding a position through any key data releases? Am I worried the data release will conflict with my trade and cause problems? Do I have enough time in the trade to hold through any short term volatility if it goes against me? These are all factors I consider when placing a trade, and while in a trade. If at all possible I try to align the aforementioned chart analysis and time it with the data releases. As aligning the two gives incredibly higher probability of success.  Another thing that really helps finding trades and confirmation of the trade is cross asset correlations. If im trading dollar vs other currencies im watching gold as they tend to be inversely correlated. If im trading equity indexes im looking at VIX and other volatility metrics, and the 2y treasury note/spy ratio chart. Using this type of analysis is a great way to find confirmation in a trade that supports the underlying technicals.  I also have chart indicators i use on my chart platform (trading view) that help me distinguish favorable risk to reward setups. If a underlying security is showing overbought conditions via any of the numerous indicators that show this, im much less likely to have a bullish bias, purely based on the risk to reward of that potential trade. Similarly, using average true range (ATR) indicator helps me distinguish the volatility. In the world of options, particularly being a buyer of options, money can't be made without volatility.  And this goes back to my strike placement around expected moves. If the ATR is not increasing while price is moving in my favor, that trade is much less likely to pay me because the options were fairly priced. If I see ATR is increasing than it gives me more confidence in the options mispricing volatility and that is when I get paid.  Combining all of these things, takes time and patience, and objective decision making. Its easy to only see what we want to see as a result of confirmation bias. But when aligning all of these ideas together it makes the picture a lot more clear and allows for profitable trading. There is still a subjective intuitive element to my trading and that comes with time in the markets. Your emotions as a beginner trader hurt you. As a seasoned veteran they can be invaluable in managing trades. 

TypeAMamma

Yes, obviously. ATR is an indicator of what is happening with the underlying instrument.

TypeAMamma

ATR has reduced so SPY is moving less than before.

austin5549

Honestly, you are minimizing your time in the market and severely decreasing risk, which is great. Typically the stock can only go so much during a day based on the ATR, so, again, you are minimized there too. I think what you are doing makes sense. I was doing this with $GUSH on oil and it worked, but I messed up on my stop loss on other stocks and now waiting on 1D entries and focusing on my career as day trading is pretty much it’s own career.

Shitty_Shpee

Jesus Christ, using 300k margin and risking 25k (based on ATR of roughly 5) to make 7k profit

elpresidentedeltoro

“ Here’s a distilled, powerful version of everything you just said—trimmed down, sharpened, and ready to post if you want to clap back while keeping your edge, clarity, and command: ⸻ So let me get this straight: for a beginner trader, you’re seriously suggesting “learn the Greeks” as foundational advice? That’s like handing someone a calculus textbook on their first day of arithmetic. You think a noob trying to figure out how to buy to close or sell to open is going to make sense of Vega decay or gamma scalping? Stop cosplaying as a mentor. This isn’t about ChatGPT being wrong—it’s about you being lazy with the prompt and posting low-effort, regurgitated “truths” with zero nuance. “Boring equals profitable?” What does that even mean? Define boring. Low ATR? Low IV? If it doesn’t move, it’s not profitable for long calls or puts. If you’re selling, now you’re too close to the money. That’s not boring—that’s dangerous. Cash is a position? Sure. But why? When? Relative to what risk? What setups? You could’ve built an entire post around journaling alone—entries, exits, thesis, emotions, post-mortems. But instead, we get brochure-level clichés that do nothing but waste time. Stop using AI like a copy machine. Use it like a weapon. Think deeper. Say something worth reading. ⸻ Want to make it even more brutal? Or more sarcastic? Or keep it neutral but piercing? I can adjust the tone. “

Mrtoad88

0dte what? If you're talking spy... No the spread isn't bad at all on SPY, or QQQ... Not sure where you're getting that from. SPX, spread can be pretty wide on the lower volume strikes, but I've seen it pretty low like 5 cents. But generally it's around 10 cents on average for most well traded strikes, towards end of day that can go to like 20-30 cents if not worse, if we are talking like last 10-20 min of open. Value is 10x spy so spread is usually around that, but volatility is 10x spy. If daily ATR on SPX is 100, SPY daily ATR will be like 10. If you are talking long calls and puts trading, if you get into a strong setup on SPX 0dte or otherwise, you'll be surprised how quickly the spread is covered on the trade. A single 5 min candle on SPX can be 10-20 points sometimes. Idk I think you are inexperienced and are missing something in your evaluation, or you are guessing, back testing etc, but haven't tried it live...yes I make money with 0dte options it's about all I trade anymore. Now if you were talking NDX...yeah, that shit can be annoying to get filled, spreads can be stupid wide there so you gotta be careful at the strike you pick. Volume and open interest isn't as high on NDX as it is SPX, and definitely not SPY or Q's. But volatility, is very high on NDX, daily ATR has been very high on NDX, NQ etc... like 350-400...a single 5 min candle on NDX can be like 30-40 points sometimes, so even there... If the spread is wide, and you can get a solid like mid fill, or a little bit below the ask, you will be surprised how quickly a good move for you will move into profit. Contracts are expensive AF on NDX though, even 0dte. So yeah, that's all I have to say about this.

EducationalCicada

What was the trailing setup? Fixed percentage? ATR?

TypeAMamma

I used to momentum trade SPY option scalps up until two weeks ago. It's ATR has compressed so that strategy and also the ORB strategy won't work when there are limited breakouts and the range of movement has reduced. Either you need to change your strategy or move to a different instrument/stock that fits your method.

Mean-Evidence-4056

ATR

dimethylhyperspace

Idk if you're into technical analysis..I am, and it's made me a much better trader contrary to the average dumb wsb opinion..but anyways, if you are a chart guy, you should look at Average True Range, or ATR to help with stops. It's basically a metric that measures the volatility of any given ticker over time and essentially allows you to create an expected move based on the beta of the stock itself, along with current market vol conditions, so that you can place your stop more strategically. There's tons of YouTube videos on it. I've just gotten burned by S/L's more often than I have been saved by them. Now a days, I let the auction finish for the day, and then make a judgement call. And that's just for my swing positions. My core positions I'll never sell, so no need for a stop loss there either. That said, I will set really loose stop losses in case some headline causes a giant liquidation. Usually around -8% to 10%. But those are essentially my "circuit breakers"

JoshuaVCU

I understand this is an old post, but just in case if others are revisiting this, here is a scientific article written which performed the ORB strategy on multiple time frames and found the 5m time frame on the opening candle to be the best: [https://papers.ssrn.com/sol3/papers.cfm?abstract\_id=4729284](https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4729284) They compared to other time frames such as the 15m, 30m, and 60m and found the 5m to work the best. They made sure also to select stocks which had the following criteria: 1. The opening price had to be above $5. 2. The average trading volume over the previous 14 days had to be at least 1,000,000 shares per day. 3. The ATR over the previous 14 days had to be more than $0.50. 4. The Relative Volume had to be at least 100%. 5. Trade the stocks with the top 20 Relative Volume.

Mrtoad88

I hope so. I want the volatility to stay high like this for as long as possible. When we truly rebound pressure is gonna get way weaker and my style of trading isn't as good in those conditions. I'm seeing the daily ATR's on ES/SPX, NQ/NDX faulter slightly, this last wee, moves still good but a little weaker. I want it to stay high so yeah I'm wanting more carnage, big intra day moves happen in markets like this, not boring bullish. So yeah I hope you're right but yeah I don't think we've seen true bottom yet, I think we'll bounce around in the short term but yeah months down we'll keep heading down. 🤞🏽

Top-Database2020

Here's my cheat sheet: 1) if volume spikes 3x the average, stay with it; 2) trailing stops at 2x daily ATR; 3) never let a winner become a loser (move stops to breakeven after taking 2R profits).

FraggDieb

On which TF do you use the ATR? And why did you choose 1.5x as multiplier and not 2x?

procyon_mh

Well, I'm only focusing on one at a time and right now SPX feels adequate and moves around enough. I don't think it would work if I tried doing several at the same time because I'm doing fast entries and with tiny movements when there's momentum. I'm an amateur, so I trend the same index on three separate time spans with the fastest being 30s. I look at the trend behavior and take my entry points based on the Bollinger bands, the RSI, MACD, RVI, ATR and the usual MA50, MA200

junior_bqx2

Thanks for your reply. I normally take into account the stock volatility and ATR, but my average is 0.3 delta too.

TrickBit27

Over the 180-day observation window (Oct 28, 2024 – Apr 27, 2025), the discrete-time step count series exhibits a multi-regime stochastic process, initially modeled effectively as an Ornstein–Uhlenbeck (OU) mean-reverting process with a low β-mean reversion coefficient (~0.3) and suppressed realized variance (annualized σ² < 0.2). During the Nov–Feb window, the system demonstrates pronounced anti-persistence (Hurst exponent H ≈ 0.35), validating stationarity under Augmented Dickey-Fuller (ADF) tests (p < 0.01), favoring countercyclical alpha harvesting strategies. Transition dynamics into March 2025 manifest through a bifurcation point characterized by volatility expansion, spectral density flattening, and an increase in Approximate Entropy (ApEn > 1.2), suggesting a stochastic drift toward a non-linear chaotic attractor. The April breakout displays an explosive move exceeding 4σ from the exponentially weighted moving average (EWMA, λ=0.94), with accompanying kurtosis spike (κ > 8.5), and positive skewness, satisfying conditions for a regime switch under Markov Regime Switching (MRS) models. A Johnson SU distribution fit yields a better log-likelihood estimation versus Gaussian (ΔAIC > 12), implying the necessity to transition away from Brownian assumptions toward heavy-tailed Lévy processes. Under a dynamic factor decomposition framework, eigenvalue decomposition of the covariance matrix reveals first principal component dominance (>70% explained variance post-April), consistent with emergent monodimensional trend reinforcement. Realized Sharpe ratio optimization under rolling windows (30d) would trigger alpha migration from mean-reversion strategies (half-life = 8.3 days) to momentum capture systems (optimized lookback ~21 days), with layered convexity overlays (dynamic gamma-hedging straddles) to absorb tail exposure from anticipated mean-reversion events. Parametric VaR models (Gaussian and Cornish-Fisher expansions) both fail backtesting (Kupiec POF test, p < 0.05), mandating a shift to historical simulation or EVT-based (Extreme Value Theory) models for accurate risk calibration. Immediate allocation recommendations would favor volatility breakout algos with dynamic trailing stops calibrated to ATR(14) volatility bands. From a pure mathematical finance lens: the system has transitioned from a damped stochastic harmonic oscillator to a chaotic semi-Markovian process with boundary-skewed potential wells, now requiring entropy-maximizing stochastic control methodologies for efficient alpha extraction.

xXSomethingStupidXx

Generally when structuring positions that rely on a certain amount of movement, reviewing ATR for the relevant timeline is essential. What you didn't note here is the potential for total loss on these positions due to gamma/theta is quite high. Any kind of middling movement in SPY or whatever security will lead to you losing twice. And we have had weeks as such many times, where despite significant swings, SPY/SPX will finish a week near net neutral. If you really want to get into the math of straddles, you're gonna need some calculus experience or a computer's help modeling the Black-Scholes pricing structure. But this is a good rule of thumb. Required move to ensure profit on a straddle: call premium/call delta+put premium/(-1*put delta) Ex $1 premium on both options. .5 call delta, -.5 put delta. 1/0.5+1/(-1*-0.5)= 2+2=4 Minimum move required to guarantee breakeven in this position is $4 on the underlying. Gamma, theta and passage of time in general complicate this, and an option moving ITM and acccruing intrinsic value throws it out the window (you would need an option approx 2.5-3$ ITM to breakeven), but if you plan your positions on that idea you'll have a fighting chance. Options are complicated, and the market makers have supercomputers running the market. Don't ever think you're smarter than the other guy. Right or wrong there is no free lunch.

CloudSlydr

well, with SPY ATR (14) over 15pts, you're right they probably did well since april 3 or so!

Spirited-Aspect

I did well when I kept it as simple as possible. For the sake of not getting into all the details….. PMH, PML, PDH, PDL levels on the chart along with hourly levels and ATR for price targets. 9 & 20 SMA to help with entries and exits. After market open wait for a clean break with volume of either previous day or pre market level or both, and enter on a retest of said level or one of the 9/20 SMA. I refrained from entering any trades between 11am-2pm and always take profit along the way. Hot take: I really started profiting consistently when I quit using stop losses. I found myself getting stopped out leaving lots of money on the table more often than not. I’ve got a high risk tolerance which can lead to some very red days but the Green Day’s far outweigh them.

A_Shadow

What ATR levels stand for?

DuckTalesOohOoh

Maybe, but we're at daily ATR levels. It has been a low-volume day so it took a while to get there. Those are frequently reversal points. I'd wait until at least confirmation.

Silversurf978

Its very easy. 4 ATR puts on $SPY 0DTE as soon as JPOW is fired. He may appeal and stay on, but this is the easiest trade to watch.

cuntpuncherexpress

I work for a credit union and we absolutely test for ability to repay. For ARMs, we use the fully indexed rate for the life of the loan, not the starting interest rate. It’s a legal requirement for loans subject to ATR/QM. Whether other companies are fudging the numbers to get loans approved by underwriting though, I can’t say for sure.

No_Supermarket_8647

same, was gambling at first, was doing ok, then lost 20k in two weeks at the end of 2021, thought it was over for me. Walked away, learned my lesson and came back 2 years later. I’ve made back my losses and have been making money pretty consistently since (still not a millionaire though). here's what I think helps me, and it might help you too: 1. Find a solid strategy/chart, backtest it (at least do strategy testing on tradingview. See which tickers it works best with. I like using ATR, Alphatrend, and fibonacci indicators, those are free 2. Automate your strategy (you can link your chart to your brokerage, like with Traderspost, but they don’t do spreads I think). 3. You can also connect pre-made strategies to your brokerage. For example, 2moon ai has good auto trading with TSLA, but I think they only support Tradestation brokerage I think. 4. Manual trading sucks, but if you do it, really watch what VIX is doing + ATR for that ticker (on 4h or daily). Don’t trade against that! 5. Set multiple take profit levels and stop loss (automatic is better). If you’re up 30-40% soon after opening, be happy with that and get tf out. Don’t chase home runs

jdvillao007

Thanks. Wouldn't it be better with a % instead a fixed amount? Btw how do you set the right amount? Dou you use ATR or something like that?

DoubleFamous5751

We’re a tweet away from a 2ATR move in either direction any time a number of countless people says something 

VannaSwan762

No apologies! Theta kicks in like an SOB esp in high VIX environments around <35 days. I would be pragmatic but this kangeroo market could rally up so the risk is up to you. Go for 3:1 profit to loss if you can, I would assume you’d need a stop for that in your price. Or use an ATR trailing stop. Calls were pretty expensive on Friday.

DoubleFamous5751

Market pumps Monday, then we get a 2 ATR sell off because this is a “fuck you” kind of market right now.

OptionsRntMe

Spy ATR is now $20 💀

Equal_Suggestion_507

Hope you held! Decay really kicks in around 21DTE. So if you’re down significantly and material conditions haven’t changed, a good rule of thumb is to stick with it until then. I’d say that is even more applicable now, with policy announcements gyrating the markets up and down & seemingly permanent volatility. Or ATR/wide stop losses.

shooshkebab

With heightened volatility, adjust stops for larger margins. Use the most recent 3 to 5 day ATR for more accurate forecast of your stops.

No_Supermarket_8647

this free ATR indicator is not bad [https://www.tradingview.com/v/3h4LO8zH/](https://www.tradingview.com/v/3h4LO8zH/)

No_Supermarket_8647

If you want to do that, at least get in and out on the VIX: use the ATR indicator (10, 3) on a 3-5 min timeframe, set take profit levels (like 25%, 50% etc). If I trade manually, I always look at VIX. worked perfectly for me today—quick in and out

Bloto1

$498 strike. Will see what happens. Just gambling on an after hours bump up, with no real reason other than it did it yesterday and the market jumped to a higher ATR today so some pullback in a normal market would be expected.

Strange-Guitar6716

you should do some research on quantitative stop losses. i use the 1 min ATR of the underlying and the contract delta to determine my SL. have been getting stopped out of trades less often than when I used to use a flat %. my average cost of getting stopped out has gone up compared to using a flat rate SL, but I’ve been more resilient to volatility in premium and have had more winners

PriceActionTruther

5s ATR at 40-50 earlier, lol.

iamwhiskerbiscuit

I think it really depends on where we open. There will be lots of buying pressure at $500 on SPY. If that price level gets taken out pre market, it means institutions don't believe it will hold and we'll most likely continue to fall. If we drop below $490, we've got a 50/200 SMA death cross on our hands which is a very big deal that will trigger major selloffs. Possibly dropping the market an additional 2-5%. If we open slightly above $500, I would expect a dead cat bounce that goes as high as $515. if Vix drops enough, it can flush out the institutions that are hedging with VIX causing a squeeze that fuels a temporary relief rally that could last several days. Either way, I think strangles are a good bet. just buy a bunch of cheap otm puts and calls at open and hope for one side to go up 400-2,000%. It's the safest play here especially when ATR is this high. I wouldn't buy into what the media is telling you. They are frequently dead wrong about these things, and you're often better off doing the opposite. FYI, Jim Cramer is predicting it'll be a Black Monday. So a bounce is still very possible.

Kan14

Emini AH ATR is 76 points... thats almost a 1.5% move

the_humeister

How to you get ATR?

Apprehensive-Bug4102

Depends on ATR.....on avg at least 100 points on SPX....so if ATR was 80 for example, I want at least 100...if ATR is 100, then at least 120 and so on. But last 3 days ended up having insane ranges (100-150pts) and they all started red just to reverse and become heavy green days. In other words, the worst possible scenario for this type of strategy.

Apprehensive-Bug4102

5 to 10 spread max between the two options.... expected move I follow ATR at different daily averages and I was always going out of the money above the ATRs so always played it super safe. But the whipsaws of the last 3 days have been insane.....down a lot at the open and then up a lot at the close. Not to mention the speed on some occasions. Talk about 2-3 standard deviation scenarios you think you would never see. We always fear downside moves, but when greedy buyers are buying, the thing moves fast!

Reasonable_Tower3816

not that ATR matters on a day like this but we're at 100% of recent avg range here

Sh0_6uN

Your approach to options trading with a statistical edge is a solid starting point, especially if you’re aiming to minimize directional bias and focus on probability-driven strategies like iron condors. To achieve this, you’ll need tools and data sources that provide historical price ranges, volatility metrics, and statistical insights into daily moves for assets like SPY (the SPDR S&P 500 ETF Trust). Here’s how you can go about it and some tools that can help: ### Understanding the Typical Daily Move of SPY The “typical day move” you’re referring to—such as ±0.7% for SPY—can be approximated using historical data, often through metrics like the Average True Range (ATR) or standard deviation of daily percentage changes. For SPY, this fluctuates based on market conditions, but you can calculate or source this data to define your statistical edge. ### Tools and Data Sources 1. **Yahoo Finance or Google Finance** - **What it offers**: Free historical price data for SPY. - **How to use it**: Download daily OHLC (Open, High, Low, Close) data into a spreadsheet. Calculate the daily percentage change (e.g., (Close - Previous Close) / Previous Close) and then compute the average and standard deviation over a period (e.g., 20, 50, or 252 trading days). This gives you a rough “typical move” range. - **Pros**: Free, accessible, and customizable. - **Cons**: Requires manual calculation or basic coding skills (e.g., Excel, Python). 2. **Thinkorswim (TD Ameritrade)** - **What it offers**: A robust trading platform with built-in tools like ATR and historical volatility charts. - **How to use it**: Load SPY, add the ATR indicator (set to daily), or use the “Studies” feature to plot implied volatility and historical volatility. ATR gives you an average range in dollar terms, which you can convert to a percentage of SPY’s price. - **Pros**: Free with a TD Ameritrade account, real-time data, and no coding needed. - **Cons**: Requires account setup; interface can be overwhelming for beginners. 3. **MarketChameleon** - **What it offers**: Options-focused data, including implied volatility, historical volatility, and expected moves for SPY. - **How to use it**: Search for SPY, go to the “Summary” or “Volatility” tab, and look at the “Average Daily Move” or “Historical Volatility” stats. It often shows expected ranges based on options pricing. - **Pros**: Tailored for options traders, includes statistical insights. - **Cons**: Some features require a paid subscription (free tier is limited). 4. **Barchart.com** - **What it offers**: Technical analysis tools and options data for SPY, including standard deviation and historical ranges. - **How to use it**: Search SPY, check the “Technical Analysis” or “Options” section. The “Trader’s Cheat Sheet” provides price projections based on historical volatility and technical indicators. - **Pros**: Free tier available, easy to navigate. - **Cons**: Advanced stats may require a premium account. 5. **OptionsAI** - **What it offers**: Visual tools for options trading, including expected move ranges for SPY derived from options prices. - **How to use it**: Search SPY, and check the “Expected Move” feature, which shows a probable range (e.g., ±0.8%) based on current option implied volatility. - **Pros**: Free, intuitive, and options-specific. - **Cons**: Less historical depth compared to raw data platforms. 6. **Custom Calculation with Python** - **What it offers**: Full control over statistical analysis using free libraries like `pandas` and `yfinance`. - **How to use it**: Pull SPY data with `yfinance`, calculate daily percentage changes, and compute the mean and standard deviation. For example: ```python import yfinance as yf import pandas as pd spy = yf.download(“SPY”, start=“2024-01-01”, end=“2025-03-29”) spy[‘Daily_Change’] = spy[‘Close’].pct_change() avg_move = spy[‘Daily_Change’].mean() * 100 # in percent std_move = spy[‘Daily_Change’].std() * 100 # 1 std dev range print(f”Avg Daily Move: {avg_move:.2f}%, 1 Std Dev: {std_move:.2f}%”) ``` - **Pros**: Free, highly customizable, and precise. - **Cons**: Requires coding knowledge. ### Applying This to Your Iron Condor Strategy - **Daily Move Example**: If SPY’s average daily move is ±0.7% (say, $4 on a $570 price), and the standard deviation suggests 68% of days fall within ±0.8% (±$4.50), you could set your iron condor wings at ±0.8% (e.g., sell a call and put at $574.50 and $565.50, buy protection further out). This gives you a statistical edge if SPY stays within that range by expiration. - **Reinforcing Data**: Cross-check with implied volatility (IV) from options prices, which reflects the market’s expected move. Tools like MarketChameleon or OptionsAI provide this directly. If IV suggests a larger move (e.g., ±1%), adjust your strikes wider for safety. ### Practical Tips - **Time Frame**: Use a rolling window (e.g., 20 or 50 days) to keep your stats relevant to current market conditions—SPY’s range varies in calm vs. volatile periods. - **Volatility Context**: Compare historical moves to current IV. If IV is low, your ±0.8% condor might be safer; if high, widen it. - **Backtesting**: Test your strategy on past data (e.g., via Thinkorswim’s “ThinkBack” or Python) to see how often SPY stays within your range. ### Final Recommendation For a quick start, try **Thinkorswim** (ATR and volatility tools) or **MarketChameleon** (expected move stats). If you’re comfortable with basic coding, Python with `yfinance` offers the most flexibility to tailor your statistical edge. Over time, refine your approach by blending historical ranges with options-derived probabilities. This way, you can confidently trade SPY iron condors with a numbers-driven advantage, sidestepping the “noise” of market direction.

ai-moderator

# **TLDR** --- **Ticker:** TSLA **Direction:** Up **Prognosis:** Buy TSLA calls before earnings. Author claims 5-10x potential in 2-3 weeks. **Author's Position:** 4300 shares **Strategy:** Long at $240-$255, stop-loss at $235, target $300, $315, and $340. Options play suggested is calls expiring one week before earnings. Mentions potential for another ATH run to $420 next quarter if successful. **Rationale:** Sentiment shift (rightward leaning support), fundamental improvements (FSD, China and India expansion), and technical analysis (volume profile, ATR, Fibonacci levels) all point to an impending rally. Analyst claims that the recent dip was an overshoot and that the market is currently accumulating. **Warning:** This is a high-risk, high-reward trade with significant reliance on the author's interpretation of technical indicators and political sentiment. Your mileage may vary. DYOR.

Reasonable_Tower3816

yes if u wait for some kinda 5 day avg ATR downside limit (with no other outstanding news) and then buy a 1% OTM call with <2% of your trading account, thats a reasonable thing to do, might still not be +EV without extra color but its 100,000x better than what everyone else is doing here.

DoubleFamous5751

Yeah, indexes being down more than 1 ATR in a day, just standard operating procedure now. 

TopDeckHero420

Tesler losing the last level of ATR, yesssssss

eleutherae

And how people will trade options on RH Mobile without any advanced charting is beyond me. I need my EMAs and 200 SMA. I need my price lines. I need ATR, RVOL, and others. Otherwise, I am using fewer and fewer forms of confirmation to make a decision.

mufasis

It depends on the setup and what time frame you’re taking the trade on. The biggest gains will come from daily, 4hr, 1hr and 30min setups. Use ATR, bollinger bands or keltner channels to see when moves are exhausted, use a hard stop limit in case your trade goes against you, trail stop to desired profit.

Yul_B_Alwright

I believe they are based off ATR and a multiplier... kind of stupid I think. Like I get it... just don't think they add much value other then junking up the screen more. OP is looking to spot trend reversals and continuations before they happen. Anyone can see bands moving apart by large candles lol

Coffeewin

[Combined brokerage accounts are now +22.39% year to date.](https://i.imgur.com/LAdCjtg.png) Roughly 60%+ of the gains have been from going long with mean reversion using SPX put credit spreads at -4+ ATR. You can make money going both long and short. [All accounts are now +115.63% since the TD to Schuab transition in May 2024.](https://i.imgur.com/OZ3k9x1.png) Some of us are actually long-term profitable trading options for a living. Remember health and family is the most important thing in life. Taking the family out to a $500 seafood/lobster dinner tonight. All indexes are deeply oversold with most at -4 ATR and $PCALL at 0.82, already scaled out of the majority of short positions. This correction has been very unusual with barely any covering rallies. Although the market will most likely continue lower, the risk-to-reward holding leveraged short positions at the current moment in time is skewed unfavourability. The probability of an inevitable bounce is quite high. I'm not sure if it will be within a few days or a week, but I would be very cautious since being on the wrong side of a covering rally will be the death of an account.

reichjef

What was that price action today? It was so god dang orderly all morning. Just down bar after bar, up bar after bar. Then ATR ranged the whole afternoon. Are there just no funds moving money today? Is it all just day traders and algos jacking with each other?

Coffeewin

Yes /ES and SPX were -4.5 ATR and $PCALL is 0.87 absolutely insane. There's always mean reversion. I started scaling in at -3.5 ATR, was taking MEGA HEAT holy fuck

Coffeewin

Long 5x /NQ at 19235, index is at -4 ATR mean reversion soon COPIUM 

Coffeewin

Just closed omega massive AAPL short. Switching long with SPX put credit spreads since SPX is -4 ATR with PCALL at 0.77, risk to reward being short is dangerous at these levels. Scale out, lock in gains if you have short positions

Edgar_Brown

I mostly brew my own, most of the indicators in my chart are my own code. Even ATR and means.

StockBreakoutPlays

You're in the right direction. If young and risk tolerant, then buying options based on the underlying stock trends is the way to go. Consider it a stock replacement strategy. If older and already have a nest egg, then use a covered call strategy to generate income without risking as much capital since you can own the stock. As mentioned above buying options as stock replacement for directional trend riding means you learn to read stock price action before trading options. If you can't trade stock you won't do well trying to pick the direction via options either. Otherwise you are just gambling by buying calls or puts. Know when a stock could move in your favor by studying charts. Find stocks in a broader theme that have upcoming catalysts. Recent themes include AI, quantum, nuclear energy, space, crypto, etc. There will be new themes. Pay attention to market shifts. Find a big runner? Check for similar companies and watch the charts for breakout points. Personally I use a combination of daily and weekly charts and primarily trade OTM 1 Standard ATR deviation away. Meaning a $30 stock with an ATR of 3 could see 33 in just a day once the chart breaks. ASTS example from today. March $33 calls went $2 to $4 on the daily chart bull flag break over 30 while trading 2000 contracts. The March $35 calls went 1.50 to 3 and traded 4000 contracts. If the premium is low compared to the range potential on my chart setup, it's go time. No chart edge, no trade. The only Greek you really need to know is delta. Leave everything else for the market makers and the overthinkers. Trade monthlies. Don't gamble on 0dte until you can read charts in your sleep and are profitable trading the longer time frame. Good luck. PS you will lose money at first. Treat it like a job, not a get rich quick. Study study study.

ProfitHound_YT

been trading for 10 yrs. i get the urge to make money fast and get rich quick. However most of the time u going all in for a 100%+ roi ends up in you losing. Go back in past data and just pick an option. See how frequently it hits 100% and also look at the chart in its respect. Would you have nailed that entry for the 100% roi? most likely not and if you did, most likely it was calls and you picked the absolute low of the day to the high of the day. Reality sinks in and you realize that betting a whole ATR of a stock for the day on a consistent basis is highly unlikely. You will blow up if not on the first trade. High theta in morning spikes so i stay away from same week exp and following week, i go 30dte till abt midday i go then following week exp to cpaifalize on higher delta. But any risk management strategy would again also tell you that to get that 100% roi on the option... u have to be fully regarded to have bought where the absolute low of the option hit and then somehow sell at the absolute tippy top... we all know that aint happening. You were regarded enough to buy a falling knife, no way ur selling at the top as you watch 100% .. 110%.. 125% then ur like maybe itll go to 200%! but instead ur now up 75,65, 50, 43% and just sit there watching it so then you gamble overnight and in some cases ur up to now 200%, but in most cases you are -40%

phatbob198

>A longtime drug policy reform advocate says he spoke with a White House staffer at an event last week and was invited to submit a proposal outlining why President Donald Trump should back federal marijuana legalization. >At Americans for Tax Reform’s (ATR) weekly “Wednesday Meeting” of conservative activists hosted by Grover Norquist last week, Citizens Against Prohibition (COP) drug policy specialist Howard Wooldridge said a White House representative welcomed proposals from all attendees—and he was able to personally discuss his plan to advise the administration to adopt a pro-legalization position. >“I got a couple minutes with her, just one-on-one, and basically gave her the basics that my organization of law enforcement and citizens would like to see an end to the drug war and make it a medical issue in the macro,” Wooldridge told Marijuana Moment in a phone interview on Tuesday. >“She was very open to any and all suggestions coming to that particular meeting, because it obviously is a friendly environment for someone who’s coming from the Trump White House,” he said. “She was certainly a good listener.” >Wooldridge—who also co-founded Law Enforcement Against Prohibition (LEAP), which has since been renamed Law Enforcement Action Partnership—declined to provide the name of the administration staffer, given certain expectations of decorum at the weekly meeting that’s been going on for over 30 years. Marijuana Moment reached out to the White House for comment, but a representative was not immediately available. >As far as the cannabis proposal is concerned, Wooldridge said he would be submitting it by the end of this week, with consultation from well-known conservative cannabis lobbyist Don Murphy. >“Basically what I’m going to bring in the proposal is the political advantages for the Trump administration to end the policy of federal prohibition,” Wooldridge said, stressing the potential appeal of pitching a states’ rights position on the issue of legalization to the Republican president’s team. >Trump has backed that states’ rights perspective in the past, and on the campaign trail he also endorsed a Florida marijuana legalization proposal as well as federal rescheduling and industry banking access. >But in the months since he came out in favor of those reforms, he’s been notably silent on the issue. For example, even after securing the release of an American who was incarcerated in Russia over marijuana possession—and inviting him to the Capitol for an address to a joint session of Congress this week—Trump declined to acknowledge the underlying cannabis charges. >In any case, the forthcoming proposal is an attempt to bring the president back into the conversation. From Wooldridge’s perspective, getting Trump to explicitly call on Congress to act on a reform bill is the only feasible pathway given the ongoing resistance to loosening marijuana laws by current GOP House and Senate leadership...

Coffeewin

Just locked in massive profit on all short positions. Switching long with QQQ, GOOGL, and SPX put credit spreads. Major indexes are at -3.5+ ATR with /ES tagging 200 SMA. With $PCALL also insanely elevated, the risk/reward is not good short. Very very high probability of a mean reversion upwards

1OO1O11O11O1O

It depends on what kind of investor you are. Are you basing your decisions on fundamentals? Trend following? If something is going up and up you ideally can ride it as long as the trend is up, and sell when the trend goes against you. Easier said than done. But if a stock is up a lot, instead of just selling, consider using a trailing stop to lock in gains while enabling the possibility of the stock increasing in value.  I believe one method used in calculating a stop target is 2 * ATR which takes the average true range volatility and multiples it by 2 to calculate a range of where the stock falls. Often a large cap can move a lot during the day, a LOT of action takes place in the afternoon which contributes to closing values that can be much different from an intraday high or low. But that's more for swing trading than long term investing 

Coffeewin

Scaling into GOOGL 2026 debit call spread leaps with 1:5 R/R, opportunity is way too insane to not. Also scaling into GOOGL put credit spreads with 1+ month out expiration anticipating a mean reversion over a few weeks. It's currently at -3.5 ATR, could probably die more but ready with multiple layers if it does. Probably the best R/R position in the market at the moment

Greatest-depression

you can go further and feed the ATR and MA/alphatrend scripts (they're open) to chatgpt and set ATR to trigger only if MA has triggered.

Greatest-depression

try ATR on 5-15 min, but filter it with a trend indicator like MA or alphatrend (only take bullish ATR trades if MA/alphatrend is bullish). this helps avoid bad trades from volume spikes

Round-Willingness459

Research your ass off and consider it payment to yourself up front. Options will likely be an expensive lesson to learn despite all your research efforts; they can make you huge sums of cash but going in blind can easily become your biggest regret in life. They are inherently far more volatile than stocks and many do blow their accounts up so manage your risk to a T when you play them. Stop losses and profit taking are a must unless you are actively watching charts and still convicted, even then a turn in the wrong direction can obliterate your money if it’s bad enough so always hold some level of doubt in yourself and be ready to exit if the trend reverses (especially if IV is out of control). Like always buy low and sell high, but options give you the best exposure to price action available so your price swings are amazing for scalp plays. You for example might buy contracts at .20/c and make your position free by selling half at .40/c within seconds but you can always be wrong and lose it just as fast. Every day closer to your expiration date your option will lose intrinsic value (the actual moneymaker) to theta decay and your money will fade if the stock is flat or against you. In the money ITM puts or calls will be less effected by this decay but the vast majority of options bought on the market expire worthless because of this, they are ticking time bombs and you need to trade them as such. Deep out the money OTM will be much cheaper to buy and trade but they’ll lose their value much quicker if the stock stagnates or moves against you, they can certainly become ‘worthless’ before their expiration too. There are tools online like spotgamma that help you visualize the amount of call vs put buying on stocks you like; pay attention to how the stock price changes in relation to these influxes of buyers and sellers. There can be mismatches that correct in huge moves up or down. Before you even buy one option contract study the Greeks and then quiz yourself. They help you understand the metrics of the option so you’re aware of exactly what it is you’re buying and how the value will change over price action and time. Options calculators are great tools too, and you can use the stock’s average true range ATR to give you an idea of what the options might be worth the next day. Breakouts of these ranges will result in even larger gains and losses as well. There’s years of learning ahead of you (and me) but like I said study your ass off until you’re confident in what you’re trying to do, understand the expected risks and how to use ATR to capitalize on profits and you could become a very successful options trader. Good luck 👍

Coffeewin

Five layers deep on AMZN put credit spreads anticipating a mean reversion pump. It's currently at -4.5 ATR, targeting around ~$214

Coffeewin

Gonna attempt to catch the knife and sell put credit spreads on AMZN. It's at -4.5 ATR, high probability of a mean reversion

reichjef

I caught that dropper today es at the close. Once it broke down the ATR at about 3:15pm EST, I thought we might get a pullback. I didn't expect a 30pointer, but, it still worked out.

MicahTheExecutioner

A 143 call on nvda at 1:12 pm eastern standard time is approximately $2.6 Which means nvda would have to get to 145.6 by Friday in order to break even Or approximately a 7-8% move in a single week to break even. Which means you're paying an extreme premium for a move that is greater than the current ATR of nvda on a weekly basis... while nvda has a markup of the equivalent move, which means your odds are even worse. But Goodluck!

Dividend_Dreamer

The optimal stop-loss level depends a lot on a stock’s volatility. If a stock moves 5-10% daily, a 26% stop is almost a guarantee that you’ll get stopped out long before a real reversal. Maybe using ATR or historical volatility could help determine a more logical exit level?

Greatest-depression

These are names of indicators, but sure: ATR - average true range, PSAR Parabolic stop and reverse) ADX - avg directional movement index, MA - moving average

GoldBlueberryy

next time set your stop at one ADR/ATR

StockBreakoutPlays

I'll always buy options on trending stocks with the right IV/ATR ratio. Keep selling those calls please.

Greatest-depression

Sure! You can find free indicators on TradingView and apply them to your chart. Some of the most popular indicators include **Squeeze Momentum, AlphaTrend, SuperTrend, MACD,** and **ATR.** For example, here is a popular **AlphaTrend** indicator: [https://www.tradingview.com/script/o50NYLAZ-AlphaTrend/](https://www.tradingview.com/script/o50NYLAZ-AlphaTrend/) Your entry and exit would be based on **AlphaTrend** (that’s your strategy). I fed this chart into the backtester with different tickers and timeframes and then identify what works the best

Greatest-depression

This backtester works with indicators (there must be clear entry and exit points on your chart). I assume you can do something like that with the ATR indicator on an ETH chart. Credit spreads would probably work since volatility is high

pencilcheck

Hm, I think there is a misunderstanding. I'm not saying you need to study the fundamentals or understanding how the company is doing day by day. I'm simply saying to get enough knowledge that this company is within desireable industry that is currently blessed by the feds or media so there are volumes. Then understand how price actions usually will happen in those situations, and have some knowledge of technical analysis such as trailing ATR, bollinger bands etc, understand where support and resistances are. I'm much younger than you, I don't believe in company fundamentals actually since those are BS most of the time. I also don't care about the company well being as well. But you example of day trading is kinda weird, you are day trading of course you don't want to expose to overnight risks, isn't that standard? As for options trading, unless 0dte, you have to keep the options open until exp, does that make me care about the company? no. I hope that clarifies it.