š How to YEET: BABA Flow and Price Action Tutorial Read
An education YEETlet so that you get an understanding of how the plays come to be
Hey!Ā Iām @yourboymilt, and welcome to the Daily Newsletter! I should probably let you know...This is not financial advice!Ā
Editorās Note: I want the YEETs to not to be long and cluttered, but I also want to spend time on what I feel are moments of value, enter The YEETlet. BABA stood out to me here as a way to explain a few concepts, so thatās what follows. If you want to learn it read it, if you donāt donāt. All good!
šµļø Pt. 1: BABA Video Analysis
Here is a live look at how I analyze plays from a flow and chart perspectiveāhopefully you pick up something new from either the flow, the price action read, or both. I ordered the wrong mic, and have been too lazy to reorder/repackage this wrong one, so forgive the audio for a few more days.
The Breakdown: Flow and Price Action Step by Step
Taking the concepts from the video and breaking them down so they are clear for you, and easy to reference.
š³ BABA Net Premium
I always check out the net premium even though Iāll admit itās never a deciding factorāit is good though for knowing if I want to wait for entry potentially if itās against my trade (or itās sweet confirmation bias if itās in the same direction).
š³ BABA Contract of Interest: 5/24 64p, 566k in Premium
The contract of interest is the one you check religiously, and is your North Star. When this whale is out, itās time for you to fold em whether youāre up or down
š³ BABA Supporting Contracts:
4/12 68p, 50k in Premium / 4/19 67p 27k in Premium
I want to be clearāif you donāt have a second contract supporting your flow play, you donāt have a trade, you have a lotto. This is fineāIām the last one to judge itābut understand that confluence is the difference between a nice find and a standard YOLO.
Part 2: The Price Action
šµļø BABA Levels and Chart
First: We are looking for the places around the current price action that show two or more similar points of reversal on the hourly interval.
Second: We are looking for gaps that may explain any accelerated movement a whale may be plotting on.
Finally: We are setting a final target for the clearest and most dramatic point of reversal in the vicinity of the whaleās strike price
šYEET Prime Entries: 72 if we open green, 71.65 if we open red
šTargets: 70.36 // 68.78 // 66.57 (stops will be updated live after entry and dependent on a number of factors)
š Contract we like: BABA 4/19 68p
BONUS BULLISH TICKER: FUTU
The same filter tagged FUTU on the 4/26 OTM 61c and 63c. Weāll be looking for an entry to alert on the 61c 4/26.
I love you Milt!
Will email you our labor report for tomorrow