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fwilliams92109 t1_ix0r3m2 wrote

Definitely nothing is 100%, but as far as ODTE options go, I am yet to lose when the day opens on the bottom bollinger band or below after gapping down from previous day close. When the day opens in this position I buy calls at open and sell as soon as they double. The options sometimes end up running for 200-300% but I’m perfectly content doubling my money. Using bollinger bands with V-Wap on the 30 min chart helps me a lot also as far as intraday trades. 90% of the time SPY will not move past it’s 1 hour bollinger band width during the day, unless the bands pinch to within a dollar of top and bottom band, when that happens a big move is coming in either direction so I’ll buy an iron condor for the next day expiration and sell once I’m up 50% total.

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embracethekook t1_ix15f0m wrote

For those overnight gap up/down plays are you using the 30 min time frame? What do you have your std dev set to in your BBs? I use 3 instead of 2 for better accuracy when they are hit, but of course are hit less frequently than a std dev of 2.

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fwilliams92109 t1_ix16tnu wrote

The standard 2, I’ve messed with 3 and even 1 like an idiot but 2 seems to work well for me. For the gap up/down I only do that if the 1 hour too and bottom band are within a dollar of each other and ideally closer to .75.

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MayoLovinApe t1_ix2690j wrote

You using trading view? Id like to check this out tomorrow. What settings should i use? I never used bollinger bands so be noob friendly here.

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fwilliams92109 t1_ix27o96 wrote

I use Webull, I use the default band settings, “length 5, width 2” so 2 standard deviations of change and middle band is moving average of 5X whatever time frame selected. What I’ve found to be important with bands is getting a feel for the different time frames and how you like to trade. Bollingers work well for me as channels, upper or lower channel, and direction of middle band. Would recommend using 5 min view, then if you start to see an opportunity, check it against V-WAP, then check it against the 30 min, 1 hour and daily view to see where the price is on all those bands. For me, if the price is at the top or bottom band on the 5 min, I look for there to be room in the other time frames for any play I make to run.

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MyCatIsFuzzy t1_ix7rosy wrote

This is very similar to my own approach. I also almost never keep a SPY contract overnight. But with a method similar to the one described above (with a few more EMA’s and swing indicators, etc.) I rarely am not in the green each day.

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