Two 500+ Score Bombs - How Much $$$ Did They Make?

Good morning RIGD.

We call this chart pattern the very hungry caterpillar.

Step by step it eats a little bit more, then moves back down because it’s lazy before slowly inching its way back up.

We were going to call it the inch worm but didn’t want to offend any of you… so very hungry caterpillar it is.

And that’s what we’d expect to see.

Here’s how it works anon…

If the lizards are setting up for a big hulk rip or a nuke, it comes through in the option flow. Option flow is like a blockchain that not even the North Koreans could launder money through. RIGD AI is like this sentient being that just stares at the option flow all day and deciphers the lizard moves, so you don’t have to.

That’s why when a big move happens, we detect it and let you know so you can size up in the trade, make your money and the dip out straight to maithai time.

There were two maithai moves to be made on the 500+ bombs.

Let’s break them down and see how they went!

9:31 - 513 SPY BULL BOMB

We love this trade. In the future this will be tagged as a “BOB” aka bull on the bottom.

Well how can it be a BOB if the market just opened?

SPY closed on 9/6 at 446.22

SPY opened on 9/7 at 443.11

Gap down at the open and up is typically the first move we see! That’s the way the market tends to go over time.

The bomb fires for the 443c

9:31 - 1.13

If you were slow on the finger move or just waking up a bit early and not really in sync with things, it worked in your favor because there was an initial drop and you could have entered the trade at a lower price.

9:32 - 1.03 (-8.85%)

But right after 9:32 it went straight up!

9:42 - 1.85 (+63.72%)

If you held until the next opposite signal (bear bomb or red florb in this case), then you exited the position at 9:47 around 1.62.

So either a 63.72% return in 11 minutes or a 43.36% return in 16 minutes.

Personally if we see 50% we take the money and run!

9:40 - 532 QQQ BEAR BOMB

This one fires as the QQQ is moving up. Since it’s 10 minutes into the session we will compare the spot price at time of the alert 370.47 to the opening price of 370.21. There’s not much change here, so we don’t love taking the trade. The app will automatically do this for you shortly.

9:40 - 532 QQQ bear bomb 0.92

9:41 - Red Florb appears!

9:42: 0.73 (-20.65%)

If you took the trade immediately at 9:40 you’re down, but we haven’t seen any bullish signals. This is a sign to stay in the trade!

9:54 - 1.39 (+51.09%)

Look at you Mr. Diamond hands. You got into the trade, you held through because you’re a degen who hates losing and it pays off. You just pulled off another heist for a 50% return in just 14 minutes.

10:04: 1.59 (+72.83%)

The trade hits its max gain in 24 minutes for a possible 72.83% return. This part is tricky because you’re getting bearish alerts at the bottom for the day.

The 10:06 bear bomb is a 279 score. Our view if we’re still in the trade is that we want to see an immediate devil dick move down or we bounce.

Why?

Lizards are not immune to chasing moves they may have missed. Because it’s only a 279 and not a 500+ bomb, it’s a small lizard like the ones you see picking up the scraps at a cheap all inclusive buffet.

As soon as the QQQ started moving up from there… it’s time to rip out of the trade!

If you held until 10:08 when the QQQ started moving up again you were able to exit at 1.20 for the 370p netting you a 30.43% return.

Still good… not great but sure beats working for a living.

DEVELOPMENT CONTINUES

We’re constantly thinking about how we can improve RIGD which means;

a.) high probability alerts

b.) 4th grade level easy

The introduction of lottos (the 444p yesterday went 68.26%) helps but the addition of BOBs (bulls at bottoms) and BATs (bears at tops) are going to help massively here. They’re the ultimate signal vs noise separation.

But as anyone will tell you… entering the trade is the easy, knowing how long to hold and when to exit is the hard part!

We’ve found from experience that the RIGD system works best when we exit the majority of a position at the next opposite signal.

So if you buy a BULL BOMB, you sell when the next BEAR BOMB appears and vice versa.

However doing this requires staring at the chart and since this product is for retail degenerates… that’s not something we want to be required.

To fix this, we’re building a “snapshot” feature that once again borrows from our time in the depths of crypto degeneracy.

Here’s how it works:

1.) You get a 500+ BOB (bull on the bottom) and enter the trade.

2.) You click the start button like the button below

3.) You click BULLISH or BEARISH (the side of the trade you’re on)

4.) You select BOMBS or FLORBS (the signal you want to use for the exit)

This comes down to personal preference / appetite for risk. If we see an opposite FLORB we’ll probably hold on, but a bear bomb while we’re in calls is a sign to ripcord out of the trade.

5.) Snapshot will send you an email + push notification when the opposite signal fires.

You can exit the trade or at least it’s a sign to tune in and pay attention! These things are as volatile as they come.

Use case:

There’s a ton of value in immediately capturing market status (FL, FS, Bull / Bear score, Florbs) at the time you enter a trade and then monitoring the changes from that moment forward.

What happened before we entered the trade, isn’t as relevant compared to what happens next.

We think the real $$$ in the Snapshot tool will be not using it to exit, but using it to hold on for longer or at least leave some runners.

Here’s a look at some of the top alerts RIGD has sent…

What you’ll notice is the # of alerts sent during the session and the hold times are all over an hour, some 4+.

If you enter a trade on a 500+ BOB (bull on the bottom) in the open session and then see we get 5 more BULLs, then it’s a clear indicator that you want to hold onto the position or even add to it.

BOBs and BATs should ship first, then Snapshot, then (god bless the development team), we’ll pull our historical data into the flow pages so you can see how the session compares to the past.

Oh and we also shipped support for $META today…

$META like $AAPL and $TSLA are still in the extreme alpha phase (no dynamic weighting based on Friday expiry), so tread very lightly if you’re trading them.

Why ship low volume options like META?

Tin foil hat on but the China conflict is back on the menu.

We mentioned the Chinese iPhone ban for government employees yesterday but it seems they’re dialing up the heat today.

Since every company in China is more “state-owned” than state not-owned, the ban is significant.

A source told Nikkei that the ban goes into effect October 1 for departments involved in trade secrets and to all employees from March 1 next year.

• Greater China (including Taiwan and Hong Kong) is ~ 20% of Apple sales

• Apple forecasted no revenue growth for Q3

• Apple is releasing a new iPhone later this month

So China is taking the hammer to America’s number one company while pushing nationalism and Huawei spy phones while saying fuk you to the chip ban.

The easy trade would be to short $AAPL which is down -5.47% in the last week compared to $SPY’s measly -1.51%…

But the big brain move is to watch $META rip to new all-time highs.

Why?

Because this is America baby and when we get fk’d we fk back even harder.

Which in this case the “TikTok ban” becomes a major talking point again in the media and among our senile Senators…

Zuck’s going to win again even with the metaverse and threads being epic failures.

Who knows what happens… but it will show up in the option flow and we will be watching (and hopefully making money).

STAY FROSTY!

thanks for reading THE RIGD REPORT by RIGD AI

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