Bender shares his strategy of combining the BlackBoxStock options flow and algorithmic trading alerts with the powerful BlackBox community of active traders sharing live information on the next big daily moves before they occur.
Hey guys, happy to be here! I can definitely walk through a couple of things with you on some of the ways I use the BlackBox platform in conjunction with my trading style. The first thing that I like to do in the morning is open the BlackBox pre-market scanner to look for anything that is moving. I look for tickers with volume, I’ll look at anything that has made a decent size move.
Within the BlackBox platform, you can click on a ticker and look at the news to see if that specific ticker has anything on it that day that would be causing a pre-market move. That is the first thing that I look for. I’ll add those to my watch list, and I’ll see how they act pre-market. After that, once the bell rings, I’ll be looking at the options flow. Usually, all of this is done a few minutes before we have any stock or options alerts come in for the day.
I’ll watch the flow and filter it. A lot of times I’ll be looking at calls and maybe sweeps, either above half a million dollars in value or greater than 500 contracts. I’ll set those filters accordingly and see what comes in first in the options flow. This BlackBoxStocks options flow is a very powerful tool. The options flow is showing you where the big money is going. When you start seeing the same ticker hit in the flow it is like, alright, I need to keep an eye on this because there is big money piling into whatever is going on. Afterwards, I’ll go check and see if that ticker has news and then I’ll watch the chart, that is how I use the platform. I combine the use of the options flow with technical analysis.
So, as I pull up the chart on multiple time frames, I’ll try to understand, alright, all this flow is coming in, is it coming in because the news? Or is this just a technical setup on the chart? And I’ll try to understand the motive behind it.
Next, I’ll draw lines of support and resistance and I’ll use the other indicators that the BlackBox platform provides to make sense of what I see. I’ll think, hey, why are all these people buying here? And that is primarily how I use BlackBox for my options trading style. I combine the options flow with the alerts, as well as technical analysis of the charts. You can also keep an eye on the most active calls, the most active puts, and where the bullish flow and bearish flow is.
There are not only options flow alerts, BlackBox also provide stock alerts. If you see a stock alert and you see flow coming in, from a technical perspective, those are all signs that it has a good probability of moving in the direction that is being indicated.
Also, to give you an example of something that happened today. The platform is so fantastic and the information that you get out of the platform is really, really good. That along with the conversations that happen in Discord and the resources that we have in Discord on live chat and live voice, you always have the moderators and members talking. Collectively, we’ll see flow come in and today this happened on YUM.
We’ll see bullish flow come in and the ticker makes a move. Initially, I was actually looking at YUM in some areas of resistance for a potential rejection or the potential for it to break down and start moving the other direction. So, I called that out on Discord, and I said, “Here is what I see as areas of potential resistance.”
I was looking at longer term charts, and I called that out. And when I did, one of our moderators, Melstone, who I’m sure you’ll hear from as well. She is our dark pool trading expert, and when I brought YUM up, she said, “Well, I have not seen anybody flipping out of these calls yet and I have not seen anything in the dark pool, but I’ll keep an eye on it, and if anything happens then I’ll let you know.” So, now I’ve basically got another set of eyes on YUM. And since I’ve got another set of eyes watching YUM, if it does reject than people will start flipping out over the calls or we’ll see some big volume in the dark pool.
You know that when someone calls out in the live chat, everyone is now going to flip out about that ticker. Or someone will mention that they’re seeing these prints in the dark pool, and I’ll think that that shows me we may have a chance for it to go the other direction. I know a lot of people went long on YUM today and did well on it. I thought the rumor got a little bit too much of a move after the drop from earnings, so I was looking and waiting for that rejection.
When you combine the information, you get from the BlackBox platform, the information that you can read from the flow, and information on the BlackBox Discord server, you can determine what is truly going on. We have so many eyes on different things that if something hits the news or some headline comes out, it is going to get talked about almost instantly. Just imagine having an entire team helping you keep eyes on various tickers throughout the day. You do not get that anywhere else without the BlackBox community. And to me, the combination of the community and the platform is what really makes BlackBox something special.
I’ve talked about the news feature here, which I use a lot. There are also a few other hidden gems in BlackBox. If you go into the volume ratio scanner, you can see stocks that are higher than their normal volume or that are trading higher volume. There is also a post-market scanner, so at the end of the day, at the closing bell, I’ll come over to the post-market scanner, and I’ll watch and see if anything moves after hours. Usually for the first 30 minutes after the bell, we’re talking about earnings and we’re listening in on how companies are reporting, and I’ll simultaneously watch the post-market scanner to see what is moving. All of that kind of starts the creation of my watch list for the next day.
Overall, those are the main key points on how I use the BlackBox platform. The things that I found to be the most useful, along with all this, is if you are a newer trader you can easily follow along with the moderators and see the calls that they’re making in Discord. This system is awesome. BlackBox gives you all the information you need and there is a lot of help in our community to go along with it.