Due Diligence

Real-time unusual options activity — sweeps, blocks, and large premium orders deviating from normal trading patterns. Primary proxy for institutional positioning.

Volume-to-open-interest ratio screener. High ratios indicate fresh directional bets rather than hedges. Used for sweep confirmation.

Founded by Jon & Pete Najarian. Tracks unusual sweeps stacked across multiple exchanges. Cross-reference for high-conviction flow signals.

IV rank, IV percentile, and options flow reports. Used to assess whether premium is cheap or expensive relative to historical volatility.

Authoritative source for VIX spot and futures data, SPY options chains, and implied volatility term structure. VIX contango/backwardation analysis sourced here.

Price feeds, historical OHLCV data, and options chain used to calculate SMAs, ATR, and expiry premium estimates.

ES futures premarket data, global macro (Gold, WTI Crude, DAX), and overnight gap analysis for session setup.

Primary charting platform. Used to apply and visualize Saty ATR Levels, Pivot Ribbon, and Volume Stack indicators in real time.

Crowdsourced stock analysis, earnings previews, and options-related news. Used to gather catalyst context and earnings trade setups that may drive unusual flow. Quant ratings and Wall Street analyst aggregations supplement directional bias.

Independent fundamental analysis including fair value estimates, economic moat ratings, and uncertainty scores. Used to validate whether a ticker's options trade aligns with longer-term fundamental value — particularly relevant for LEAPS and longer-dated contract selection.

The primary indicator used to derive all price targets in this publication. Calculates put/call trigger levels at 23.6% Fibonacci offsets from previous close ± 1 ATR. Mid-range at 61.8%. Full ATR range at 100%. Available free, open-source on TradingView.

Three exponential moving averages (8, 21, 34) forming a "ribbon." When price is above all three and they are stacked in order (8 > 21 > 34), trend is bullish. Ribbon alignment is checked on daily, weekly, and monthly charts simultaneously per Saty's multi-timeframe system.

Splits volume into buy and sell pressure and dynamically stacks the dominant side. Unlike static buy/sell volume indicators, this dynamically re-orders based on which side is winning. Used to confirm directional bias before entering long calls or puts.

Core principles applied in this publication: (1) Only trade liquid instruments. (2) Power hours: 9:30–11:30 AM and 3:00–4:00 PM ET. (3) Monthly cadence: early month aggressive (0–90%), mid-month reduce (0–50%), third week minimal (0–25%), end of month ramp back. (4) Discipline over prediction — analyze, react, trade. (5) Plan exit before entry.

Methodology for interpreting sweep orders vs. block orders. Sweeps (filled across multiple exchanges in rapid succession) are treated as high-conviction directional bets. This publication uses flow as a confirming signal, not a standalone entry trigger.

When VIX futures trade above VIX spot (contango), as on March 4, 2026 (spot 15.06, futures 22.13), market participants are pricing in future volatility expansion. This makes current long premium purchases relatively cheap — a key signal used in this publication's entry timing.

ATR measures average daily price range over a rolling 14-day period. Used here to calculate Saty's Fibonacci trigger levels and to set realistic profit targets and stop-loss levels proportional to the instrument's natural volatility. SPY 14D ATR: $8.62 as of March 4, 2026.

Core intraday and swing-trading framework integrated into this publication's analysis engine. Key concepts applied: The Squeeze — Bollinger Bands inside Keltner Channels signals explosive breakout; histogram direction determines call/put entry. ATR-Based Scaling — exit ¼ position at 1 ATR, ¼ at 2 ATR, ¼ at 3 ATR; hold final piece until momentum rolls. $TICK & $TRIN Internals — ±1,000 TICK readings signal institutional program trades; TRIN trend (not level) reveals true buy/sell pressure. Reversion to the Mean — Keltner Channel outer bands (1.5× ATR) define overextension; fade moves at bands back to 13/21-period EMA. Options Delta Rule — buy ITM options with delta 0.60–0.70 to maximize underlying price capture and minimize theta bleed. IV Crush Awareness — never hold long options through earnings unless IV is historically low; sell into IV expansion. Power Hour entries — 9:30–11:30 AM and 3:00–4:00 PM ET (aligns with Saty's system). Gap Trading Rules — gap fills are high-probability when price structure and tick flow confirm; gaps into resistance = fade. Fibonacci Clusters — confluence of 3+ Fibonacci price relationships defines high-probability support/resistance. 35-minute rule — if a trade hasn't hit target or stop in 35 minutes, exit at market and reset.

The AI Intelligence Dispatch sections of this publication are generated in real time by Claude, a large language model by Anthropic. All AI output is for educational purposes only, is not financial advice, and should be independently verified before any trading decision.