Options
Morning Range v2
Options Setup Guide
For SPY/QQQ/IWM and liquid large-cap option chains. Keep contract choice simple and aligned with Morning Range signals.
Key Levels Only
No-Trade 09:30-09:45
Max 2 Attempts / Side
Quick Start (New Traders)
🎯Pick near-the-money contracts with tight spreads.
🧭Choose calls/puts only after underlying level confirms.
🛡️Risk fixed premium and exit fast if level fails.
Plain English: Near-the-money usually reacts cleaner. Wide spread = harder fills and weaker execution.
1 Contract Selection
Expiration
- Default: same-week expirations for intraday swings
- For beginners: avoid 0DTE until your rules are consistent
- Avoid far-dated contracts for this intraday system
Strike Rules
- Use near-the-money contracts for cleaner delta response
- Avoid deep OTM lottery contracts for core setup
- Prioritize tight bid/ask spread and liquidity
2 Signal to Contract Mapping
- Trend Day LONG → calls
- Trend Day SHORT → puts
- Range Day SUP BUY → calls near lower boundary
- Range Day RES SELL → puts near upper boundary
- Only use signals at PM / Weekly key levels.
3 Risk and Management
- No entries during 09:30-09:45 ET no-trade zone.
- Risk by premium paid, not by hope.
- Use predefined max premium loss per trade.
- Max 2 attempts per side per day.
- Take partials at 30-50% premium gain on fast moves, then protect the rest.
- Exit quickly if the level no longer holds your trade idea.
4 Checklist
- Underlying level trigger confirmed first.
- Contract has sufficient open interest and volume.
- Spread acceptable for your size.
- No low-liquidity contract chasing.
Options Trap
Right direction, wrong contract. If liquidity and strike selection are poor, good signals still underperform.