The "Waterfall" Algorithm
Capital flows sequentially. Use the NVDA beat to predict the next wave of buying in Infrastructure and Software.
The Chip Makers
The Buyers
The Enablers
Live Signals
Option Chain Glossary
Definitions for the columns seen in your trading terminal. Understanding these is critical for executing the algorithm correctly.
Strike
The specific price at which the deal is set.
Example: A $100 Strike Call means you have the right to buy at $100.
Bid / Ask
Bid: The highest price a buyer will pay right now (Sell price).
Ask: The lowest price a seller will take right now (Buy price).
Mid (Midpoint)
The exact middle between Bid and Ask.
Tip: Always try to get filled at the "Mid" price to save money.
Last
The price of the very last trade that actually happened.
Warning: If volume is low, "Last" might be old news. Check Bid/Ask instead.
% Change
How much the option's price has moved since yesterday's close.
+100% means it doubled today.
Impl Vol (IV)
"Implied Volatility." The market's expectation of future crash or boom.
High IV = Expensive Options. Low IV = Cheap Options.
Open Int (Interest)
Total number of contracts currently active (held by people).
High Open Interest means lots of people are betting on this Strike.
Delta
How much option price moves if stock moves $1.
0.50 Delta = Option gains $0.50 if Stock gains $1.00.
Gamma
The acceleration of Delta.
High Gamma means profits (or losses) can explode very quickly.