The SSC is a technique that is fractal and we can use it in the same way on different time frames.
Let's check some examples of trades:
Using the KL2000 scanner we could find RNG (Ring Central) that had a SSC on the Daily chart, and just crossed the dragon after the Psar flip. It seems that the multi-months support level is solid.
Using ATM short-term options we can maximize the Gamma in the following days before expiration.
So buying 2 options for 5$ will cost us 1000$ and will give us the same exposure as holding 200 shares (64,000$) above 320. We are risking about 1.5% and getting a nice exposure if the stock will go up sharply in the next days. The BE point is 325 which is 2.2% above the share price (318).
In the following day we are already at the BE point and have 3 more days to let it run:
The next example is in DKNG (Draftkings).
Yesterday, my friend Bob send me a 30min Chart of DKNG where it was just about to make a SSC (still before the Psar flip):
We can also see that the Risk Z indicator is starting to revert back to the mean.
Because I noticed that ARK investment is buying this stock, I decided to stalk it on the 1min chart today and as soon as I see a move up I will get in long.
So now I used the 1min Chart, and bought on the SSC:
and up it goes:
I decided not to sell C60 and move to vertical spread (and to take out most of the risk) , as the stock looks ready to go up, and I still have 3 more days to expiration. Maybe I could lock-in some profit tomorrow.
And last example is BMRN (Biomarin Pharmaceuticals), where I used the SSC on a 5min chart.
Here the options strike were 75 and 80 and the stock was trading in the middle, so I decided to day-trade the stock without options, but the idea is the same.
Buying on the SSC:
and easy risk management all the way to the close, using the Psar as my trailing stop (Initial risk was 0.3$):
And closed with a 3.5R winner.
The SSC is a powerful technique that is fractal and we can use it on different time frames, either by trading the underlying itself or by using options.