Daily Plan 6.14.24
Hey folks, the key levels today were 5530 as resistance and 5460 as support.
While neither of these levels traded today, we came about 10 handles of both of them, but the level that worked well was 5480- 5483.
Consequently, this level will remain my key level for the session tomorrow.
This is from the September contract. Subtract about 65 from it for the SPX levels.
Scenario 1: The bears need to take out 5483 and remain below it to target 5460, else we may rebound from 5483 and retest some recent highs near 5515-5530.
Additional scenarios may be shared in the chat room.
A lot of these moves intraday now are due to options. 0DTE to be specific. There is no reason or rhyme other than the option volumes and how MM are positioned. Some things to keep in mind are where is the most OI for the daily option? What volume is at what level and what are main greeks like Delta? What is the net change in these 0DTE options per strike?
When day’s range is wide, like 40-50 points or more, this does not matter that much, however when we have days like today with barely 25-30 points of moves, studying option trades can become a valuable tool in a trader’s arsenal.
I will soon be publishing a post for my subs on how I personally visualize 0DTE option chain to identify potential support and resistance levels intraday. Stay tuned.
PLTR
PLTR traded up to almost 24 after I pivoted bullish around 20 here in the Substack and is now trading 23.
Looking at July 19 expiry, I like 25 CALL which is now around 50 cents. I think if 40-50 holds on this call, I think PLTR is headed higher into 26-27 area.
DJT
I was a DJT bull around 20 before it ran higher into 80 bucks recently but has since fallen quite a bit and is now trading 40, after being cut in half. This stock does have quite a bit of short float but remember this is also about an 8 billion dollar company.
Just for short term, I think the 36 PUT for June MOPEX, currently priced around 1.3 looks interesting. I think if this stock pops higher, and the PUT goes down to 1 dollar or so, it looks decent from risk to reward.
~ tic
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