Options Trading Strategy
Options Trading Strategy
Seven Star Mike shares his strategy using BlackBoxStocks option flow, tools and community to gain an advantage trading options.
Hi everyone, my name is Seven Star Mike, I’m one of the moderators at BlackBox, and this is how I use the BlackBox system! My main setup for BlackBox is to have the options section flowing in the middle module, and the main chat room over on the right side of the page. One of the first things I do to start the day is toggle over to the green filter button in the middle options module and make sure the ‘above ask’ is checked. Once I set filters, this will then limit everything that comes across my options scanner to only show tickers that are at the ‘above ask’ or in the ‘bid-ask’ spread. The reason I like ‘above ask’ trades is because it shows a sense of urgency for someone to get into a trade. If you think about the bid-ask spread, if you’re paying above the ask, that means you don’t care what price you enter a position at – you just want to be in at that position. So, to me, the above ask trades are showing a sense of urgency to open a position.
Apple came across our scanner today. This was an ‘above the ask’ bid for Apple and I’m watching this in real-time. So, as soon as the bell rings, I’m looking for the first trade that comes in the ‘above ask’ bid. Apple here, is showing us that this trader has a sense of urgency to open this position. This was a 30,000-dollar trade. They opened a hundred fifty-nine contracts. What I’m looking for is this first ‘above ask’ trade that’s showing a sense of urgency so can follow with a quick options scalp trade, and this one was about one to two candles. It was really quick. I think it was about a minute and a half trade, and it was up something like 20 to 30 percent really quickly.
Filtering Options Flow
One of the other things I like to do is filter down. If I go back and uncheck the ‘above the ask’ filter, it’ll show us everything that’s coming across the scanner specifically for Apple. By applying the filter my view is limited to only Apple trades that the scanners are picking up. When I’m in the trade, and it has this particular filter set to whatever ticker I’m trading at the moment, I can simply watch the chart over on the left-hand side of the platform. Typically, what I’m watching for is the general guidelines and consensus for Apple as far as what the big money is doing. So, when I’m going to trade, I like to keep my filters to the specific ticker that I’m trading and get a general idea of what’s going on. In the middle module where I’m watching the flow, I can see some calls, puts, and expiration dates in the strikes that are being traded. I can watch the shorter-term trades to see what’s going on. If there’s a particular trade that I’m in, I can click on that specific trade. Filtering down my stock criteria is definitely one of the things I do when I’m in a trade. If I’m following a particular trade, I can watch what the action is doing as far as the contract price or what’s going on as far as entering and exiting trades. I can see above ask and below bids that gives me an idea of who’s entering and exiting these trades. All of this will give me an idea of what the big money is doing around the ticker that I’m trading. So, what I want to watch when I’m in the trade is what the big money is doing because there leverage often will move a ticker.
As a part of the BlackBox membership, we also have a Discord server with several trade rooms and chats for stock and options trading. One of the things I want to point out about the trade rooms, is that we have voice audio as well as text chat. On Friday, someone in the voice chat mentioned that Facebook was dropping. After hearing that I looked and got in at 12 cents. Facebook immediately shot to 59 cents within minutes. So, thanks to whoever mentioned Facebook was dropping! I was able to capture a 470% gain because someone in the trade room said, “oh, hey Facebook is dropping, what’s going on with Facebook.” I wasn’t watching Facebook at the time, so I pulled up the chart and liked what I saw. Another thing I love about BlackBox is that it is such a large community and there are so many people watching different tickers. I didn’t have Facebook on my screen at the time, and yet someone mentioned it in the chat room, and I was able to pull it up and make that monster trade.
It’s all about teamwork here at BlackBox, we grow and prosper together. We have so many seasoned traders talking about so many tickers, that whether or not you’re watching something specifically, someone’s going to be mentioning things at all times. There are so many options and features that BlackBox has, but the community is really key! We’re all teaching each other. We’re all learning from each other. The community itself is just so amazing that we can point out things we’re not looking for. We can teach concepts that others don’t always necessarily have in mind. After hours, we have a ton of support and a ton of learning and classes going on. So, for those who are new to trading there’s such a welcoming community in BlackBox that it’s such an amazing group to be a part of. I’ve been trading for about four years now and I think I’ve been with BlackBox for two of those. A lot, almost everything that I’ve learned about options and dark pool trading has come from BlackBox. I’m very appreciative of the community here. I’m very thankful to be a part of it and I love to be able to give back when I can.