JPOW Delivers for Bears, RIGD for Degens (+482.05% Max Gain)

Good morning RIGD.

FOMC came, JPOW delivered the hammer, and the lizards did their thing for us dropping sweet and tasty 100% gains all over the place.

They didn’t make it easy!

It was a little more BPI than expected and a bit more than we wanted but it was an epic day and one of the best this month.

How good?

If you followed every alert in the open session and did nothing except sell at the end of the day your net return was +284.86%.

And this was actually one of the hardest trades of the day!

How did it happen?

First… If you didn’t read yesterday’s RIGD REPORT shame shame shame.

You should probably catchup by reading here or if you’re lazy and prefer not learning how to use the best degenerate trading system imaginable you can settle for our brief summary.

Brief summary:

• Last FOMC (7/27/23) we saw up to 10x returns

• Open session sets direction for the day

• Follow the open straight to maithai time

Let’s jump in…

SPY 9/20/23 - OPEN SESSION (9:30 - 10:30):

We started slower than usual today with the first alert coming in at 9:42.

In total we fired 4 BEAR BOMBS (bearish activity), 1 BEAR SWING and 1 BULL BOMB.

5 BEAR alerts to 1 BULL Alert!

It’s a very but not quite extremely bearish setup.

We jump in the SPY 444p for 9/20 expiry.

You can see price begins to move down and these options are immediately up 10 - 15%.

We feel like genius traders.

We immediately start thinking of ways we are going to spend the future 10x returns that await us.

SPY 9/20/23 - MIDDLE SESSION (10:30 - 13:30):

That would not be the case today or at least not immediately.

After bottoming around 11:40 the price of SPY proceeded to go straight up. It starts to look bad.

Making things worse, we fired 5 LOTTO alerts during the middle session. A first for the RIGD history books.

LOTTOs Explained:

LOTTOS indicate call or put buying above the ask for OTM (out-of-the-money) options.

Something like 90% of the 0DTE option sweeps we detect every day are in the money (ITM) or near the money.

So when the algo sees OTM calls or puts, it fires an alert off.

Reminder: LOTTOS are high risk, high return plays. 

Because they are OTM, they will rapidly increase as price moves towards the strike or decrease the further it moves away.  

These lottos were for the 446 strike when SPY was $443.62.

Since we’d never seen this before, we added a few lottos here putting us in the 444p and 446c. This strategy is called a strangle. We gave up some of our profits by holding on it. That blog is called Zerohedge for a reason.

Why we held onto the main position of the SPY 444p:

The middle runs from 10:30 - 13:30 and you can tell from the chart, nothing has actually happened yet.

The entire time we’ve been hovering near the open price.

It’s rare to see a big move happen without option flow appearing. It happens, but not often.

So we’re watching the middle section happen and because we’re not getting any BULL BOMBS (only LOTTOS), we remain committed to the bearish position.

Using historical data:

We had two screens open comparing the middle session from 7/27 and today 9/20.

They looked remarkably similar!

Both are chopping in a tight range without any BOMBS fired off (we did not have lottos on 7/27).

This was the first factor telling us to hold on.

The second was this handsome intelligent gentleman in our discord sharing the reminder that open session max gain hold time was 6 hours!

We understand not everyone wants to stare at the screen and would prefer to be fed the right information.

That’s what discord is for.

SPY 9/20/23 - ENDING SESSION (13:30 - 16:00):

Our ex-wife used to complain and complain and complain about how difficult we are and why we always like to do things the hard way. We’d politely tell her to shut up and then she’d smile back and [ redacted we definitely don’t miss her ] but looking at how this session ended she was absolutely correct.

The statement drops. We initially nuke. RIGD alerts for a BULL SWING (high probability) and then we alert the best trade of the day before an absolute turbo nuke good for five whole strike prices.

As difficult stubborn low IQ idiots, we were too married to our position (unlike ex-wife we do not miss) to take another trade.

We got scared and “thought” too much instead of just trading the alerts and following the system.

Normally we do not trade the end of day as there’s a lot to lose and not much to gain. However today the JPOW press conference started at 14:30 which is the exact time we nuked and alerted the best trade of the day. We are idiots.

Let’s pretend you’re not an idiot and followed the system.

14:01 - 327 BULL SWING

Bull swings are high probability alerts!

You take them all of the time!

The alert hits the next minute after the nuke, you survive a 10.2% drawdown and likely close this position up 50%+.

14:33 - 303 Score BEAR BOMB

As individuals who may have made and lost A LOT of money during JPOW pressers we know to never trust the first move (we don’t consider the first nuke as a move, it was just computer algos doing stuff).

The initial move is the bull swing that happens after the nuke. The market is going up and JPOW hasn’t even spoken yet. You could have checked the application formerly known as Twitter to see the furus say it’s not a bullish FOMC.

That was our gut.

But as we like to say, you should always fade your gut instinct. What we know from session data is that historically the hold time is long 5-6 hours when the open session is bearish.

It’s a flawless alert… tagged at the high and never in drawdown.

If you can’t tell by the screenshot here’s another look.

That’s a 482.05% return in 1 hour!

Which you probably got if you followed the system and logged in when you received the SWING alert.

So you take 50% out of the SWING and 300 - 400% on this trade, we’re not sure there’s a better way to spend two hours.

The combination massively beats the 176% on the 444p that we held almost the entire session before selling too early.

But got dammmmm do we love ourselves some 0DTE.

Still here?

We didn’t get the 10x but look at the gains you would have had if you bought a 444p for every bear bomb this morning.

The crazy thing is because SPY closed at a low (zero bounce) the max gain is actually the final return.

Let’s say you bought every alert including the SPY BULL that went to zero.

Total investment: $773.00

Total return: $2,975.00

Net gain: +$2,202.00

Net return: +284.86%

Which actually seems to be… pretty good?

Stay frosty!

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