The RIGD BRAIN (aka how we think about trading the alerts)

Good morning RIGD.

We have two favorite sayings around here:

1.) the stonk market is rigd

2.) the market fks max participants

Friday we see a massive sell-off due to lackluster Apple earnings and poorer guidance (oh who saw that coming)…

So traders add to short-positions because the long overdue correction is finally here…

Only for a gap up Monday…

So traders go long because if the market is up when Apple is down it’s only a matter of time until we’re back at ATHs…

Followed by a give it all back at the open on Tuesday.

Big moves and no clear direction is how max participants get fk’d. Thanks markets.

We’re gapping lower today, so we should get at least one shot to take a bull at the bottom trade for a quick rip.

Don’t fret if you miss it.

On Thursday at 8:30 before the market opens we get CPI and Core Inflation reports.

Inline with expectations we rip.

Better than expectations we rip.

A lot worse than expectations we nuke.

In today’s news:

Novo Norodisk ($NVO) is ripping up 13.67% in pre-market action today because not only does their drug Wegovy help patients lose weight, but it a weekly injection also reduced the risk of a major cardiovascular event by 20% in overweight or obese people with a history of heart disease.

Making a disease claim (looking at you supplement bros out there) is serious business and serious money. Wegovy gets to move on from just a lifestyle drug which means insurance approvals and a lot more prescriptions being written.

We know this isn’t really relevant to anything involving RIGD but one of us is long $NVO in their portfolios and a win like this is worth bragging about.

How We Think About Trading Using RIGD AI Alerts

Yesterday’s option volume of 38.1m contracts was 15% below recent average levels, with calls leading puts 11 to 10.

Below average levels, we get less alerts but let’s walk you through how we thought about them on SPY and QQQ.

SPY BRIEF:

We didn’t trade SPY at all yesterday because there wasn’t anything worth trading.

Open higher and see the bulls come in (699 and 406) before a 316 bear that’s hidden by a florb (we gotta fix that) at 11:06 near the bottom.

RIGD BRAIN: We open higher and ignore the first two alerts. The bear comes in at the bottom, so we skip it. No more alerts on SPY for the rest of the day. WE DO NOT FORCE TRADES (or at least that’s what we like to tell ourselves in the mirror every day).

QQQ BREAKDOWN:

We gap up higher on QQQ and immediately it’s a bit mixed with the florbs and a solo bull.

When we open higher or lower traders lock in profits, so it’s not usual for the price action to chop for a while before making the first move.

At 10:42 we start moving down before we see two bear bombs (311 and 321) come in at 11:24 and 11:30.

Bulls at bottoms and bears at tops, so we skip the trade.

Then at 11:34 we get a 298 bull bomb.

Is this the bottom?

Not sure.

By default your notification settings are set to minimum 300 threshold so this was just below the limit.

If you are a prestigious member of the beta, please make sure you join our discord (reply to this email if not in) to get all alerts as soon as they happen.

RIGD BRAIN: While we’d prefer to see 500+ score hit here at the bottom, we take the trade anyway. If it were a higher score we would have sized up (bought more contracts), but we’re happy to follow the golden rule of bulls at bottoms and bears at tops.

As it turns out the bull bomb was just a few seconds off the bottom for THE ENTIRE SESSION.

Isn’t it funny how the lizard people always know when to take a trade??? (more on this in a second)

But of course armed with complete information at the end of the session is much different than what we were thinking in the moment.

RIGD BRAIN: After entering the trade and seeing the QQQ shoot straight up, we immediately start thinking… “when do we dump this thing?” When to sell is the hardest part. RIGD AI is best used for intraday trading (daytrades). We didn’t build this thing so we’d have to look at the screen all day. We want to get in, take our money from the market and get out. We’re also thinking how can the QQQ keep going up when its second biggest component $AAPL is nuking along with $TSLA who just lost another CFO who is probably tired of scamming the books for Elon.

Then we get the answer.

At 12:10 RIGD AI fires a 269 bear bomb at the top.

RIGD BRAIN: Bulls at bottoms and bears at tops, so we dump the calls. We take the money ~$4500 and run. We think about taking the bear bomb here but don’t really want to give anything back and mostly don’t want to keep looking at the screen for the next hour or so. 12:10 is mid session when price action can be choppy. Total time for the trade is 36 minutes.

The bear bomb ends up being briefly profitable before the QQQ does its thing (fk’ing max participants) and steadily grinds higher to close the session.

If we held the calls the return would have been 214.14% if held until the end of the day.

While painful to look at and consider how much money we could have had, we’re kind of immune to it now seeing as we’ve taken 2x gains before that went 5x or higher. The market never ends the game is infinite and there will be lots more times when we close positions too early.

Taking money from the market is all that matters to us.

A HULK MODE WIN:

We’re going to be changing the layout here shortly to make these a lot more screen-shottable (vertical cards) so bare with us here or just squint in.

Our algorithm changes during the last hour of the session.

Why?

Because if a trader is spending $$$$ on 0dte options with less than an hour to go, then they definitely know something even more than the something that they usually know.

Look no further than this on the QQQ at 15:49:15.

The spot price at the time was 374.65 and these options were 0.10 a pop.

Next you may hardly believe this (sarcasm emphasis ours) but the price ripped up and with a little over 10 minutes to go in the session…

The lizard people pinned the bottom of QQQ and they got a 150% ripper in the last ten minutes.

We don’t hate it… just wish we followed.

(and are thankful this app works so god damned well)

THE RIGD AI BETA ?

It’s actually harder to join than before and again we do not recommend this product to anyone.

Allegedly we will have a landing page built soon, so you can always wait for that.

STAY FROSTY!

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