How I Use Options Flow for Quick Base Hits

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Friday, August 15th

“The only way to deal with an unfree world is to become so absolutely free that your very existence is an act of rebellion.”

– Camus

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Markets Today

🌏 Asia-Pacific: Mixed

🇪🇺 Europe: Up

🇺🇸 United States: Mixed

🛢️ Oil: Down

⚡Crypto: Mixed

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With this strategy…
Even a tiny 1% swing in the market — up or down — is enough
to trigger an automatic opportunity!

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Major Market Events

Trump, Putin set for Alaska summit— First face-to-face since Ukraine war began
Retail sales climb 0.5% in July — Consumer spending shows signs of steady rebound
Dow futures rise on Buffett boost — UnitedHealth shares jump after Berkshire buy

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🤔 My Thoughts

How I Use Options Flow for Quick Base Hits

Cheap contracts, stacked orders, fast exits

I like small wins I can repeat. Today I want to show you how I take quick shots using options flow — and I’ll use AEO as the example so you can see the whole thing, end to end.

The big idea (plain English)

When a lot of option orders hit the same strike and date all at once, and today’s volume is bigger than the open interest, that tells me fresh money is piling in. I don’t chase every blip. I filter for cheap contracts, close strikes, and a fast exit plan.

My checklist for a quick flow trade

Keep it cheap. I try to buy contracts under $1.00. That keeps my risk small and my head clear.
Don’t go crazy OTM. I want the strike close to price—about 1–5% out-of-the-money. If it’s 20–30% OTM, I skip it. That’s a lotto ticket.
Look for “stacks.” I want 2–3+ prints at the same strike and expiry within minutes. One order is noise; stacks are intent.
Volume > OI If today’s volume on that contract is bigger than open interest, it’s new positioning, not churn.
Time window. My best shots happen in the first 90 minutes. After that, I get pickier.
Entry. If the contract just spiked, I wait for a small pullback and then buy. No pullback? I pass.
Exit rules. I take base hits. If I’m up ~20–40%, I pay myself. If I’m down ~30–40%, I’m out. No “hope and hold.”
Time stop. If nothing happens after 15–30 minutes, I scratch it.
No overnights. These are day trades. I close it before the bell.

AEO example from yesterday’s show (for learning, not a signal)

I bought the AEO $13 calls (near-dated, August 29th) around $0.62 after I saw stacked orders hit and volume jump past OI.

The stock ticked up, the contract popped, and I took a base hit fast. Could I have squeezed more? Maybe.

I’d rather book the win and move on to the next setup.

Why this works for me

Tiny risk per trade. One contract. Sleep-at-night size.
Clear edge. I follow fresh flow into near strikes and let the crowd push me out with a small win.
Tight leash. If it stalls or slips, I’m gone. I can always re-enter on the next stack.

Risks: Spreads can widen. Flow can be wrong. News can flip the tape. That’s why I size small, use a stop, and don’t hold overnight.