In this week's episode, sprocket888 manages his trade on $AMZN by rolling out the option in time one month. $AMZN was in an interesting position where it was still ITM, but volatility had increased. This situation has allowed sprocket to collect a very rich premium on the roll (more than average). Then sprocket uses the example of $AMZN to have viper talk through some Price Action. sprocket struggles with fully grasping price action and how to read it. In this episode, viper drills down to show some aspects against $AMZN. They then wrap up with how to use the Price Action and where it stands today to make a potential upcoming trade.

  • 00:00 Disclaimer
  • 00:16 Intro
  • 01:21 A look back to past $AMZN trade by sprocket
  • 02:36 Managing the $AMZN trade
  • 05:25 $AMZN Volatility ramped to the 95% range
  • 07:09 This roll lowers the RISK of the initial trade while boosting the upside
  • 08:56 viperxl007 feels PA is PRIMARY, not SECONDARY
  • 09:56 Why sprocket calls PA SECONDARY vs. PRIMARY
  • 11:06 The $AMZN play, IF viper had bought shares, he would be losing right now
  • 12:11 Take a look at PA charting, repetition, repetition, repetition
  • 13:39 Let's use $AMZN as a PA example
  • 16:21 Identifying the ranges that we care about
  • 17:05 Where is the move that started the high we care about?
  • 19:11 Also need to mark the high that we achieved
  • 20:46 We also mention local lows and local highs
  • 22:31 Don't jump too fast. WAIT for confirmation!
  • 26:10 Another example of the need to WAIT for the retest
  • 27:24 This is the moment the reversal in trend was confirmed in $AMZN
  • 28:09 Where we are today in $AMZN PA
  • 29:38 sprocket's PRACTICAL actions from the current PA on $AMZN
  • 32:56 viper comments on the chart application of recent PA
  • 35:57 Look out for accelerants!
  • 37:17 What would sprocket do here if he was not already in a trade on $AMZN?
  • 40:53 You can convert the chart to a line chart to smooth the noise
  • 43:05 The key to mastery is practice, practice, practice!
  • 44:48 Conclusion: Practical application is the best teacher
  • 45:25 Outro

Join Blockhead Traders in our Discord: https://discord.gg/89Zywff

Follow sprocket888's trades: https://www.thetagang.com/sprocket888

See All 262 Episodes of "Blockhead Traders Weekly"