First off I'd like to just mention that this method is still in experimental phase. I do not reccommend anyone try this method with any kind of size they feel uncomfortable with because you can expect loses so fast and so huge it makes you want to vomit. So if you can not handle price action swings that are wilder than any penny stock youve ever seen then this method is not for you. This method is also not for you unless you have spent a looot of time studying charts, understanding trends, patterns and other varieables that can affect the market. 

 

That all being said if you have the right mind set, discipline, and experience you can make a lot of money trading this method.

 

What is the method? Plain and simple naked options that expire at the end of the day or the next day on the SPY index. What i have discovered is that if you can time the peaks and valleys and start with small size and average your way in... if you are correct on your thesis of market sentiment in that very moment, then you can expect some wild gains once the trend returns back to its projected path. I have many examples over the past week of me using this method. unfortunately I did not record any and dont know if I will because it takes so much focus and any little distraction can mean huge losses. 

 

One of the principles I have been holding dear to me that Tim teaches is cut losses fast, however trading this method requires patience,,, if a trade is not going in your favor based on your initial small size then you can cut and get in on the other end of the trade or just time your reentry better. 

 

The SPY tracks market sentiment and leads the way for momentum of the rest of the market. therefore it is much easier to get an intuitive feel for how people selling patterns will look that day. ANY edge with trading must be taken advantage of. 

 

Case and point on wednesday we had a flash dip of the SPY right before the FED spoke. of courese I messed up and put to much size on a call (feeling bullish) on the first dip but i still left enough to average down some when it finally bottomed and ripped right back after the fed made the reassuring message about the intrest rates... market always loves that... so rather than cut and take a huuuuge loss, I had patience and intuition that this was not going to be the last straw from the SPy that day. This could easily have ended up on the wrong side if sentiment decided to shift completely bearish due to some other workdly event... like covid.... but for now the fed proping up the market has helped keep consistency with the markets path upward... that showed signs of weakening thursday as the SPY failed to breakout of the HOD and began its choppy volatile path down. And as expected this continued into Friday. 

 

Friday was not expected to be the biggest gain in one day i have ever had,,, but i seized the opprotunity and capaitalized. Nailing every single trade on the PUT side... Even before the market opened I was checking Stocktwits for sentiment report on retail side and everyone was so bullish that I just had to laugh... seeing the market green prior to open on loowww volume and being bullish is scary to think. I entered a small position right at the bell for a 338 PUT because I knew we had not reached that number yet and it was not happening today even in a good scenario, (always buy these dailys in the money) I quickly liked the price action for the down side and doubled up and then began to just play the channel to the down side... almost got faked out once... bought a 434 put when it dipped below thinking that was it for 434 but it did come back and came back good. almost broke the trend and so I added huuuuge to my position to average down given I knew the weakness in the market, and ended up making $8,105 off of just a %15 return... I COULD HAVE MADE A LOT MORE BUT ITS NOT ABOUT HOMERUNS CANT GET GREEDY WHAT SO EVER DOING THIS METHOD!!!