TradeScope — Earnings Intelligence

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📚 Trader's Reference Guide

🏗 Support & Resistance ▼

Support and resistance are price levels where buying or selling pressure has historically concentrated — causing price to stall, reverse, or break through. They're the foundation of technical analysis.

📍 Support Levels

A floor where buyers tend to step in. Price has bounced from this level before. The more times price has held, the stronger it is.

📍 Resistance Levels

A ceiling where sellers emerge. Price has reversed down from this level repeatedly. A strong resistance requires high volume to break.

🔄 The S/R Flip

Once a support level is broken, it often becomes resistance — and vice versa. This "role reversal" is one of the most reliable patterns in technical analysis.

🎯 Finding Levels

Look for: previous swing highs/lows, round numbers ($50, $100, $200), gap fills, and areas of high volume. Treat them as zones, not exact prices.

💡 Using TradeScope

Toggle S&R to auto-detect swing-based levels. Use the H-Line draw tool to mark your own. Look for confluence — levels confirmed by multiple methods are strongest.

⚡ Pro Tip

More touches = stronger level. A level that held 4× is far more significant than one that held twice. Also watch volume — high-volume rejections create stronger levels.

📊 Technical Indicators Guide ▼

Indicators are mathematical calculations overlaid on price or volume data. No single indicator is perfect — use 2–3 together to confirm signals before acting.

RSI (14)

Relative Strength Index — measures momentum on a 0–100 scale.

▸ >70 = Overbought (possible pullback)
▸ <30 = Oversold (possible bounce)

Divergence: Price makes new high but RSI doesn't → bearish warning. Best in ranging markets.

MACD (12/26/9)

Moving Average Convergence Divergence — trend + momentum.

▸ MACD crosses above signal = bullish
▸ MACD crosses below signal = bearish

Histogram above zero = bullish momentum building. Best in trending markets.

EMA 9 / EMA 21

Exponential Moving Averages weight recent prices more — faster to react than SMA.

▸ Price above EMA = bullish bias
▸ EMA 9 crosses below EMA 21 = bearish cross

Used by day traders for short-term momentum and entry timing.

SMA 20

Simple Moving Average — equal weight to all 20 periods. Smoother than EMA, fewer false signals.

▸ Price bouncing off SMA 20 = healthy trend
▸ Price breaking below = trend weakening

Favored by swing traders as a mean-reversion anchor.

VWAP

Volume-Weighted Average Price — resets each trading day.

▸ Price above VWAP = bullish intraday bias
▸ Price below VWAP = bearish intraday bias

Institutions use VWAP as a benchmark. Only meaningful on intraday charts (1m–1H).

Bollinger Bands (20,2)

SMA 20 ± 2 standard deviations. Bands widen in volatility, narrow in calm markets.

▸ BB Squeeze = low volatility → big move coming
▸ Walking upper band = strong uptrend

Touching a band alone is not a signal — look for reversal candles too.

🕯 Candlestick Patterns ▼

Candlestick patterns reveal the battle between buyers and sellers within a period. Context matters — the same candle means different things at the top vs. bottom of a trend.

Hammer

Bullish

Small body at top, long lower wick. Found at the bottom of a downtrend — buyers rejected lower prices.

Shooting Star

Bearish

Small body at bottom, long upper wick. Found at the top of an uptrend — sellers drove price back down hard.

Doji

Indecision

Open ≈ Close with upper and lower wicks. Neither buyers nor sellers won — often signals a trend pause or reversal.

Bullish Engulfing

Bullish

Large green candle fully engulfs the prior red candle. Strong reversal signal at the bottom of a downtrend.

Bearish Engulfing

Bearish

Large red candle fully engulfs the prior green candle. Strong reversal signal at the top of an uptrend.

Inverted Hammer

Weakly Bullish

Long upper wick, small body at bottom of downtrend. Buyers tried to push higher — needs confirmation the next day.

Hanging Man

Bearish

Looks like a hammer but appears at the top of an uptrend. Sellers took control intraday — a warning sign.

Morning Star

Bullish (3-candle)

Large red → small indecision → large green. Three-candle bullish reversal after a downtrend. High reliability.

Evening Star

Bearish (3-candle)

Large green → small indecision → large red. Three-candle bearish reversal at the top of an uptrend.

Marubozu

Strong Trend

Full body candle with no (or tiny) wicks. Buyers or sellers dominated the entire session — strong directional conviction.

Spinning Top

Indecision

Small body with roughly equal upper/lower wicks. Neither side is in control — often precedes a period of consolidation or reversal.

Bullish Harami

Weakly Bullish

Small green candle contained within the prior large red candle's body. Selling momentum slowing — look for confirmation.

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Expirations

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Search a ticker to load the options chain

IV SMILE —

THETA DECAY —

OI DISTRIBUTION — ■ Calls ■ Puts

Range

Liquid Δ Heat

IV%

Bid

Ask

Vol

STRIKE

Vol

Bid

Ask

IV%

📚 Options Reference Guide

🔢 The Greeks — What They Mean ▼

The Greeks measure how an option's price is expected to change in response to different factors. They're essential for understanding your risk and position sizing.

Δ Delta (0 to ±1)

How much the option price moves per $1 move in the stock.

▸ Call delta: 0 to +1
▸ Put delta: 0 to -1

ATM ≈ ±0.50. Deep ITM ≈ ±1.00. Deep OTM ≈ ±0.05.

Shortcut: Delta ≈ probability of expiring ITM. A 0.30 delta call has ~30% chance of finishing in the money.

Γ Gamma

The rate of change of delta per $1 move — "delta's delta."

▸ Highest near ATM and near expiration
▸ Long options: positive gamma (good)
▸ Short options: negative gamma (dangerous)

High gamma = delta can shift rapidly. Theta sellers watch gamma exposure near expiry — a sudden move can blow past your short strike fast.

Θ Theta (always negative for longs)

Daily time decay — how much value the option loses each day, all else equal.

▸ Theta = -$0.05 means you lose $5/day per contract
▸ Accelerates exponentially in final 30 days

Theta sellers (covered calls, cash-secured puts, iron condors) profit from decay.
Theta buyers need the stock to move fast enough to overcome it.

V Vega

Sensitivity to implied volatility — how much the option price changes per 1% move in IV.

▸ Long options: positive vega (profit from IV increase)
▸ Short options: negative vega (hurt by IV increase)

IV Crush: After earnings, IV collapses — even if the stock moves, long options can lose value. This is the #1 trap for earnings traders.

ρ Rho

Sensitivity to interest rate changes per 1% rate move.

▸ Calls have positive rho
▸ Puts have negative rho

Rarely significant for short-dated options. Most important for LEAPS (1–2 year options) where the rate-of-carry cost has meaningful impact on pricing.

⚡ Greeks in Practice

Delta neutral: Balance +/- delta so small moves don't affect your P&L.

Theta/Vega trade-off: ATM options have the most theta decay but also the most vega risk — selling them near earnings is dangerous.

Strike selection: 0.30–0.40 delta is a common balance for directional plays. 0.10–0.20 delta for lottery-style OTM bets.

🌡 Implied Volatility & IV Crush ▼

Implied Volatility is the market's forecast of how much a stock will move, expressed as an annualized percentage. It's not a directional prediction — it's a magnitude expectation.

What IV Means

An IV of 40% means the market expects the stock to move roughly ±40% over the next year, or about ±2.5% per week.

Rule of thumb: Weekly expected move ≈ IV ÷ √52
Daily expected move ≈ IV ÷ √252

High IV = expensive options. Low IV = cheap options.

IV Crush (Earnings Trap)

IV typically spikes before earnings, then collapses immediately after the announcement — even if the move is big.

Example: NVDA at 60% IV before earnings → drops to 35% after. A long straddle loses value despite a 5% move because IV paid for a 10% move.

Rule: Never buy options into earnings unless you're prepared for IV crush.

IV Smile & Skew

IV varies by strike — the "smile" chart shows this shape.

▸ Put skew: OTM puts have higher IV than OTM calls (protection demand). Common in equities.
▸ Call skew: OTM calls have higher IV — common in commodities (fear of squeeze).

A steep skew means the market is paying up heavily for downside protection.

IV vs Historical Vol (HV)

Comparing IV to realized/historical volatility shows if options are cheap or expensive.

▸ IV > HV: Options are expensive — favor selling strategies (credit spreads, iron condors)
▸ IV < HV: Options are cheap — favor buying strategies (debit spreads, long straddles)

The IV/HV ratio is shown in the header when loaded.

Intrinsic vs Extrinsic Value

Option Price = Intrinsic Value + Extrinsic Value (time value)

Intrinsic: How deep ITM the option is. OTM options have zero intrinsic.
Extrinsic: What you're paying for time and volatility expectation.

Theta decay only erodes extrinsic value. Deep ITM options with high intrinsic decay slowly. ATM options decay fastest.

Break-Even at Expiry

The price the stock must reach for your option to be profitable at expiration (ignoring time value):

▸ Long Call: Strike + Premium paid
▸ Long Put: Strike − Premium paid
▸ Short Put: Strike − Premium received
▸ Short Call: Strike + Premium received

Break-even is shown in the Greeks panel when you select an option.

🎲 Common Options Strategies ▼

These are the most common strategies for retail traders — from simple directional bets to income-generating spreads.

Long Call

Outlook: Bullish
Risk: Premium paid (defined)
Reward: Unlimited upside

Simplest bullish bet. Pay a premium for the right to buy 100 shares at the strike. Profits if stock rises above break-even before expiry.

Best when: IV is low, you expect a big move up soon.

Long Put

Outlook: Bearish
Risk: Premium paid (defined)
Reward: Up to full stock value

Bearish bet or portfolio hedge. Profits if stock drops below break-even before expiry.

Best when: IV is low, you expect a big move down, or as cheap portfolio insurance.

Covered Call

Outlook: Neutral to slightly bullish
Risk: Miss upside above strike
Reward: Premium income

Sell a call against 100 shares you own. Generates income in sideways markets but caps your upside.

Best when: IV is high, you're willing to sell at the strike price, holding long-term.

Cash-Secured Put (CSP)

Outlook: Neutral to bullish
Risk: Assignment at strike
Reward: Premium income

Sell a put and hold cash to buy shares if assigned. Great for entering a stock you want to own at a lower price while getting paid to wait.

Best when: IV is high, you want to own the stock at the strike price.

Debit Spread

Outlook: Directional (bull/bear)
Risk: Net debit paid (defined)
Reward: Difference between strikes minus debit

Buy one option, sell another further OTM. Reduces cost and breakeven vs outright long, but caps maximum gain.

Best when: IV is high (spread reduces vega exposure), moderate directional conviction.

Iron Condor

Outlook: Neutral (range-bound)
Risk: Width of spread minus credit
Reward: Net credit received

Sell OTM call spread + sell OTM put spread. Profit if stock stays within a range until expiry.

Best when: IV is high, stock is in consolidation, no major catalysts upcoming. Popular weeklies strategy.

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