72.27% Return in 2 Days by Doing Nothing

Good afternoon RIGD.

The past two days were nothing short of epic... you can make a month or a year trading them well or in this case buying them and doing absolutely nothing except letting your broker app sell for you at the close.

In total RIGD AI sent 13 alerts on Monday and Tuesday.

Action Summary (IF HELD UNTIL THE END OF THE DAY MEANING YOU FOLLOWED THE ALERT AND THEN NOTHING):

Three bear bombs went to $0

Two bull bombs closed slightly down:

• Bull Bomb 45425 closed -9.52% but its max gain was 130.16% in an hour

• Bull Bomb 46844 closeD -3.95% but its max gain was 41.73% in two hours

8 bull bombs had varying degrees of profitability with the lowest at 41.18% and the highest at 507.69% (nice!!!).

We plugged it into a spreadsheet and it looks like this.

Summary:

If you bought 1 contract (weak) for every alert on Monday and Tuesday you invested a total of $1,035.

Holding until the end of the day (extremely degenerate) resulted in a net gain of $748.

The percentage gain was 72.27%.

Pretty sick for two days though disclaimer per usual 0dte options are extremely degenerate and we do not recommend trading them under any circumstance except in cases of mental illness and desire to generate outsized returns in short periods of time.

Today is a different story with muted market action, calls and puts both going to zero.

Why?

It’s likely the market makers got caught offsides yesterday with Microsoft adding billions in market cap greater than like 400+ companies that make up the S&P500.

The move happened because they announced they’re going to charge $35 per user for access to their AI. A rational person would look at this and say that’s a stupid idea because AI is supposed to increase efficiency thus replacing the number of humans needed, which means you are charging $35 per user at the cost of replacing your userbase but this market is not rational. 

Today in crazytown a car vending machine company is up 32.16% because they’re reducing their debt and buying some additional operating time by market dumping up to 35,000,000 shares as they continue to burn cash and lose money.

FLATIO (FLORB RATIO) + FLORE (FLORB SCORE)

We’ve added a new indicator we’re calling the FLATIO (florb ratio) to our flow pages. You can think of it like the put / call ratio where 0.7 and below is bullish and everything above is bullish.

The difference between FLATIO and traditional P/C ratio is we are using different weights to value option activity.

For example in the hundreds of option sweeps occurring per trading session there may only be five or six bought OTM (out-the-money) call positions at the ask or above the ask. We value these higher than an ITM (in-the-money) call.

The same goes for FLORE (florb score) which is the RIGD version of net premium. A higher score represents overall bullish flow whereas a negative score (if this market ever goes down and we finally see one), indicates bearish flow (people buying puts).

Next we’ll look to add the FLATIO + FLORE to our alerts, which will provide a snapshot of current market status when the alert is triggered. Hopefully this will lead to better trading decisions!

Hypothetical example:

Alert A: QQQ BULL BOMB 400 SCORE - FLATIO 1.23 - FLORE 205

Alert B: QQQ BULL BOMB 283 SCORE - FLATIO 0.45 - FLORE 1532

While Alert A has a higher score, the FLATIO and FLORE are both bearish. Meanwhile Alert B is a lower score, but FLATIO and FLORE are both bullish. We’d take Alert B all day long.

Long-term we believe adding these datapoints will improve our recommendation engine when it debuts (not soon).

Thanks to everyone who hacked our pre-sale pages and found a way to signup. If you haven’t received your invitation yet, please respond to this email. The beta is closed but reading the newsletter is the best way to find out when it opens up to the public.

Also we’re getting t-shirts made because zero to one says that the best startups burn cash on cool shit before reaching profitability.

Stay frosty!

thanks for reading THE REPORT by RIGD AI

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