Swing Trading Options

Swing Trading Options

 


Swing Trading Options

We recently caught up with Jenny, BlackBox’s very own executive on-border. Here are some of the highlights of how she uses BlackBoxStocks to swing trade options…

My name is Jenny Brown. I am a moderator with BlackBoxStocks and I am also the executive on-border, which means I’m responsible for welcoming all new members to the platform and providing their information, training videos, and things like that to help them get setup using the BlackBox platform. I’m also a swing trader, but I work full time. So, my trading style is going to be a little bit different than a lot of people. I know that in my time at BlackBox I’ve run into a lot of people who work full-time, and it makes trading a little more challenging because you have to spend a lot more time in positions and it’s not easy in this market environment. One of my favorite things about BlackBox is we have swing traders, scalp traders, and day traders.  We have a whole variety of different people, so we have different trading styles for just about everybody who comes in to BlackBox. I’ve been trading since about 2017. I joined BlackBox shortly after I began trading. I was lost as a trader; I had no idea what to do.  I was taking my advice from Stocktwits, which is kind of a mess if you’re a new trader, so that’s why I found BlackBox to be very helpful because it was full of knowledgeable people who knew what they were doing.

That was before we had the Discord channel, and options flow. Most of us were trading penny stocks and low float stocks. I never could find my rhythm with those stocks because I worked.  I can’t watch a chart all day. I find it difficult to get in and out of all the multiple positions that you really have to trade with intraday trading. So, over the years, I’ve found my niche using BlackBox to swing trade options.  We all started trading options maybe a year and a half ago, and I love it! I tried day trading; it doesn’t really work for me. So again, my style is more of a swing trader. Recently, I have started to really focus on smaller accounts by finding those options that are lower-priced, which can be held a while, and that you don’t have to put a lot of money into. Options that can potentially pay 30%, 40%, 100%, whatever it happens to be. You need to be willing to hold them because some of these are really long positions.

To start out, I’ll go over what I do to get my day started and then my nightly trading preparations.  Like I said, I don’t get to watch the options flow a lot at BlackBox because I work all day, but I can find time to peek at it here and there. I love the BlackBox platform because it has real-time charts with the indicators that I need, which I can quickly access throughout the day. My favorite indicators are the 34 MA, the 9 MA and MACD. Occasionally, I like to put pivot points on my charts to watch what level the stock is bouncing from. That’s how I use the platform. It’s pretty simple, I don’t use a lot of crazy indicators.  At night, if I want to do more advanced charting, I will open my Thinkorswim platform and go into more detailed studies, but during the day I keep it simple just to see where my trades are currently. I love the option tab and a lot of people use the options flow, but I’m not strictly an options flow trader. I am a sentiment trader, which means I spend a lot of time reading news articles.  For example, in the morning I listen to Bloomberg on the way to work, I pick up a lot of tidbits on what’s going on in the world.  News inspires a lot of my ideas on what I might want to trade or add to my watch list.

I’m currently developing a list of stocks with lower cost options, and what I have found with the BlackBox platform is a feature that really helps. It’s a filter that I can select to only show anything below 50 cents that comes through on the options flow. The filter is perfect for me because that’s all I’m really interested in for swing trades. I have a channel with Blackbox on Discord that I post my swing trades on throughout the day.  I know we have a lot of people with smaller accounts, so I like to try to find options contracts that are trading under 50 cents.

 

Swing Trade Preparation

I’ll give you a quick overview on how I get ready the night before.  Finviz is a website that has got a lot of great information.  It has a lot of stock screeners, but what I focus on at night is all the different patterns that fall under whatever category I’m researching – trend line support, resistance, wedge up, wedge down. I like to find stocks that fit certain criteria. Then I go back to BlackBox and use the options flow and dark pool data to confirm what I’m seeing with the technical patterns. So, these are some of the areas where I get my ideas at night. I pour through a lot of these trying to find stocks that aren’t so thinly traded, and that may have less expensive options to play.

In the morning the first thing I do is check the alerts in the alert stream and the pre-market scanner on BlackBoxStocks. That’s a great way to find out what’s going on, real-time, in the markets, and then I can make choices from there.  I have in mind what I’m looking for, but I’m always open to something else, especially if it’s at a lower cost. I love to play those, but they have to be liquid enough for me to get in and out of.

With the BlackBox platform you can click on the name of the stock and that will bring up the chart, so you can quickly see what’s going on with any stock you select. Another thing I love to use is the Stocktwits tab. I know a lot of people steer clear of Stocktwits, but I find that sometimes the people on Stocktwits can get information really quick. If there is something going on with a stock, or it alerts in the morning in the BlackBox pre-market scan, I’ll just pop over to the Stocktwits tab to see what they’re talking about. It doesn’t hurt to get news from all kinds of sources. I also check the BlackBox top gainers to get an overview of what’s going on in real-time.  With the BlackBox trading software I can see if there are any big gainers or if anything is really tanking.  Does Boeing have some really bad news, that’s going to cause another 30-dollar drop today?  If so, I’m getting in on it.  Even though I play the smaller stocks, if a large stock has news, Roku, Boeing, or Tesla for example, I will be in every single time to make a quick scalp trade, and I will fit it in my day somehow.  But, that’s kind of tricky when you’re working full time.

 

BlackBox Discord Channel

We have a Discord channel that goes along with The BlackBox platform, and that is where I hang out all day.  I love, love, love Discord. You’re able to access it on your phone. They have a great mobile app. If you work all day, you can plug it in and listen in on your radio at work or use an ear bud.  Some people listen to their radio at work all day, I listen to BlackBox all day.  In our Discord channel we have several trade rooms, but our BBS trade room is where I hang out.  This is where BlackBox traders will frequently post trading ideas so, I stay up-to-date with the news on there.  If somebody catches something, I’ll be looking at that.  But, more importantly, each one of the moderators has their own channel, and my channel is called Jennyb-riskyaf. I do try to post, at the beginning of the day, what I might be looking at for moves. I look for stocks that have options under fifty dollars, so anybody can play them.  I am a swing trader who likes to take smaller contracts, buy a few positions and make some money off them. That’s where my focus is, I work full-time so my options trading style is completely different. As a swing trader, I look for plays that are not going to lose a lot of money. I look for options that I can buy at the money or slightly out of the money and that aren’t too risky to swing trade. I use BlackBox to match up what I’m watching with any of the options flow, dark pool trades, or any kind of news event. And that sums up how I use BlackBoxStocks to swing trade options.