01 4️⃣ When to choose a PUT 📉

 

4️⃣ When to choose a PUT 📉

You buy a PUT when:

✅ Price rejects VWAP
✅ Red candles with volume
✅ Breakdown below MA
✅ Target = Lower Bollinger Band

Example:

Good PUT choices:

• 688 Put (ATM)

• 687 Put if breakdown confirms

⚠️ Don’t buy puts:

• When price is holding VWAP

• When candles are small

• When IV is expanding too late

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5️⃣ Why your CALL lost value (-50%)

From your screenshot:

• You bought 688 Call

• Price stayed flat

• No strong move

• Theta decay + IV drop

➡️ Even if price doesn’t drop much, options still lose money

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6️⃣ Simple decision checklist (use this EVERY trade)

Before buying CALL or PUT:

☑ Is price above or below VWAP?
☑ Is there volume confirmation?
☑ Is price at support or resistance?
☑ Is this trend or chop?

If 2+ answers are unclear → NO TRADE

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7️⃣ Pro tip (very important for SPY 0DTE)

✔ Trade after direction is confirmed
✔ Avoid buying at VWAP
✔ Wait for VWAP break + retest
✔ Use smaller size near midday

✅ Step-by-step to draw a retest line

1) Find the breakout candle

Example:

• Price breaks above resistance

• or breaks below support

2) Draw a horizontal line

Draw the line at:
✅ the old resistance (for bullish breakout)
or
✅ the old support (for bearish breakdown)

That line becomes your retest line.

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🟢 Bullish Retest (CALL setup)

1. Price breaks above resistance

2. Then comes back down to touch that line

3. Candle bounces up again
   ➡️ That bounce = retest confirmation

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🔴 Bearish Retest (PUT setup)

1. Price breaks below support

2. Then comes back up to touch that line

3. Candle rejects down again
   ➡️ That rejection = retest confirmation

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⭐ Best tip

Draw the line at the area where:

• many candles touched before

• price reversed before
  That’s your real support/resistance.

• MACD is another great signal for CALL vs PUT 👇

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  ✅ MACD basics

  MACD has:

  • MACD line

  • Signal line

  • Histogram bars

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  🟢 CALL signal (Bullish)

  1) MACD line crosses ABOVE Signal line

  ➡️ bullish crossover
  ➡️ good CALL signal

  2) Histogram turns from red to green

  ➡️ momentum changing up

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  🔴 PUT signal (Bearish)

  1) MACD line crosses BELOW Signal line

  ➡️ bearish crossover
  ➡️ good PUT signal

  2) Histogram turns from green to red

  ➡️ momentum changing down

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  ⭐ Extra strong signals

  🔥 MACD crossing ABOVE zero line

  ➡️ very bullish

  🔻 MACD crossing BELOW zero line

  ➡️ very bearish

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  ⚠️ MACD Dead zone

  • MACD and signal line are tangled

  • histogram is small
    ➡️ sideways / no trend

• ✅ If RSI is already LOW (below 30–40)

  ➡️ PUT is NOT safe
  Because price is already oversold, so it can bounce up anytime.

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  ⭐ When PUT is safer

  ✅ RSI is high and turning down:

  • RSI above 60–70

  • then RSI starts dropping
    ➡️ safer PUT signal

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  📌 Simple rule

  • RSI low = safer CALL bounce

  • RSI high = safer PUT drop

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