A Simple Trade Alert Made 87% Profit On Nextera Energy Inc. In Just A Few Hours Using Options Flow

Being a retail trader is not easy. It takes a lot of time, effort, and dedication to be successful. One of the biggest challenges that retail traders face is finding trade ideas. There is a lot of information available to retail traders, including news, economic data, technical analysis, and fundamental analysis. However, it can be difficult to know which information is relevant and which information is not. This can lead to analysis paralysis, where traders are unable to make a decision because they are overwhelmed by the amount of information.

Trader tools can help retail traders to overcome the challenges of finding trade ideas and help to make quick decisions. 

For example, on Friday's trading session, I was looking at an options flow tool that has a built-in AI machine learning process to identify breakouts and breakdowns of chart support & resistance. NEE NEE was on this breakdown list at 1 pm EST, so I purchased a 69.5 PUT at the money Options for Aug 11 expiration.

That same day, by 3 pm EST, the position made 87% profit and I closed the trade. 

This is just one example of how trader tools can help retail traders to make money. There are many other tools available, such as technical analysis software, news, and economic data feeds. By using a combination of these tools, retail traders can gain a better understanding of the market and make more informed trading decisions. Let's look at how options flow. 

How Options Flow Can Help Retail Traders

Options flow is a powerful tool that can help retail traders make more informed trading decisions. By analyzing the flow of options contracts, traders can get a better sense of what institutional investors are doing, which can help them identify potential trade opportunities.

For example, let's say you are a retail trader who is interested in trading the stock of a company called META META. You know that META is a large, well-established company with a good track record. However, the stock has been trading sideways for the past few months, and you are not sure whether to buy or sell.

You could use options flow to get a better sense of what institutional investors are doing with META. If you see that a large number of call options are being bought on META, this could be a sign that institutional investors are expecting the stock to go up. This could be a good time for you to buy META stock or to buy a call options on META to profit from an increase in the stock price.

Of course, options flow is not a perfect tool, and it should not be used as the sole basis for making trading decisions. However, it can be a valuable addition to a trader's toolkit.

Here are some other examples of how options flow can be used to help retail traders:

  • Identifying potential breakouts and breakdowns of support and resistance levels: Some options flow tools have machine learning AI that can identify a breakout or breakdown immediately.  The information is readily available to make quick decisions. 
  • Identifying support and resistance levels in your analysis of charts: Options flow can be used to identify support and resistance levels in the price of a stock. A simple command and the system will provide a picture of a chart with support and resistance levels for your analysis.
  • Identifying Trade Alert Ideas. Options flow tools offer trade alerts. The AI tool can identify increased levels of options flow entering a stock along with volume and chart analysis to identify good trade alert ideas.  

Retail traders can use options flow to help them make more informed trading decisions and improve their chances of success. By using a combination of trader tools, retail traders can gain a better understanding of the market and make more informed trading decisions. This can lead to increased profits and improved trading performance.

However, it is important to remember that no single tool can guarantee success in the markets. It is important to use a variety of tools and to learn how to use them effectively. You should also be aware of the risks involved in trading and only trade with money that you can afford to lose.

Sandra Stone teaches different trade strategies for different market environments. She has a professional discord service providing beginner and advanced traders with trade alerts for day, futures, and swing traders. Custom trade indicators and trader tools like options flow as seen in this article.  She provides education and coaching in small groups and one on one training sessions. Sandra can be reached at TradingMadeSimple.org, and posts trade ideas on X formally known as Twitter as Options_Sandy. She can be reached every trading day at 714-202-7361.

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In:
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!