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