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
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
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
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.
🟢 Bullish Retest (CALL setup)
-
Price breaks above resistance
-
Then comes back down to touch that line
-
Candle bounces up again
➡️ That bounce = retest confirmation
🔴 Bearish Retest (PUT setup)
-
Price breaks below support
-
Then comes back up to touch that line
-
Candle rejects down again
➡️ That rejection = retest confirmation
⭐ 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 👇
✅ MACD basics
MACD has:
-
MACD line
-
Signal line
-
Histogram bars
🟢 CALL signal (Bullish)
1) MACD line crosses ABOVE Signal line
➡️ bullish crossover
➡️ good CALL signal2) Histogram turns from red to green
➡️ momentum changing up
🔴 PUT signal (Bearish)
1) MACD line crosses BELOW Signal line
➡️ bearish crossover
➡️ good PUT signal2) Histogram turns from green to red
➡️ momentum changing down
⭐ Extra strong signals
🔥 MACD crossing ABOVE zero line
➡️ very bullish
🔻 MACD crossing BELOW zero line
➡️ very bearish
⚠️ 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.⭐ When PUT is safer
✅ RSI is high and turning down:
-
RSI above 60–70
-
then RSI starts dropping
➡️ safer PUT signal
📌 Simple rule
-
RSI low = safer CALL bounce
-
RSI high = safer PUT drop
-
