Lightning Alerts ROOM Heats Up

Good morning, Jaydog here.

The small-cap market continues to be sluggish due to the IWM being stuck in a sideways channel. With the bank contagion behind us, the only issue I see holding it back is the debt ceiling. Looks like there could be a vote as soon as this afternoon and if successful, I do believe built up energy will trigger a $180 breakout and pave the way for bigger momentum moves here in Lightning Alerts. When this move happens I believe it’ll be big and trend for a few weeks to $190’s.

“What gets measured gets managed.” -Peter Drucker

Did you know that 82.6% of put options expire worthless?! And 76.5% of call options! This means option sellers have a huge advantage over buyers. Which is why the strategy I selected for the $2,000 Small Account Journey are bull put swing trades.

Start SWING TRADING high probability setups in $2K SAJ 

I like to buy options. I’m sure you do as well. But we need to be VERY selective when swinging them, because they can go against us fast. All of this to say I’m setting some guidelines and benchmarks for Lightning Alerts. My goal is to have these dialed in by the end of June.

Option Guidelines:

1. I like buying options, but they are low probability trades, so I will be very selective when doing swing trades

2. When appropriate to swing trade an option, a minimum of 6-8 weeks to expiration is my baseline

3. Day trading options is totally fine, because they are not vulnerable to time decay

4. Day trading options can be 1-2 weeks to expiration

5. Do not turn a day trade into a swing trade, the 1-2 week expiration will cause big losses

6. NEVER have a big losing trade

Small-cap Guidelines:

1. Day trading opening range breakouts from 7-10 AM ET daily is a very good strategy

2. An edge in the market is nothing more than an indication of a higher probability of one thing happening over another

3. Gap trades end of day are a coin toss, be very selective when trading these, they should be treated like day trades with extreme caution and discipline

4. Swing trades should be on extremely liquid stocks just coming out of the rest phase, which will reduce big losses when they don’t work

5. NEVER have a big losing trade

Opening range breakout guidelines:

1. Amazing news (filter out puffery)

2. Big range (50-100% to major resistance)

3. Float (smaller = could run faster through range)

4. Short interest (higher = turbocharged breakout)

5. Dilution risk (must be medium to low)

6. Entry (am I chasing?)

7. Take the trade

Into Wednesday’s session I’m in IWM calls looking for $180 - $183, SCHW calls looking for $63 - $67, LQMT looking for $.15 - $1, VRAX looking for $1 - $2.

The Lightning Alerts room is heating up and I have solid news for you later today.

1,479 day traders were in RagingBull’s largest livestream chat Tuesday with me.

And we’re just getting started!

Members, will we see you today?

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All trades are day trades unless clearly indicated otherwise.

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