💫 Options (practical plays) · Fade momentum

Momentum option selling

Sell OTM options in the direction opposite to a fading move. Enter when momentum indicators (RSI, ADX) show trend exhaustion — collect premium as the move reverses.

Timeframe: 15m / hourly

Indicators: RSI, ADX

Scaffold page

This page shows the core summary above. Detailed setup, entry/exit rules, and an interactive chart for this strategy are being added in a follow-up pass. See the Options (practical plays) category for related strategies with full detail already added.

What the strategy does

Sell OTM options in the direction opposite to a fading move. Enter when momentum indicators (RSI, ADX) show trend exhaustion — collect premium as the move reverses.

Tools it uses

General trading rules that apply

Regardless of the specific setup, these apply to every strategy on this site:

Never risk more than 2% of your account on a single trade
Place a hard stop-loss before entering — no exceptions
Journal every trade: setup, reason, outcome, one lesson
After two consecutive losses, stop for the session
Backtest and paper-trade for a month before deploying real capital

Educational content only

Every strategy here is an educational description of a widely-known technical setup. Past behavior does not guarantee future results. The chart above uses synthetic price data generated for illustration — real market behavior varies. Backtest, paper-trade, and size responsibly before risking real capital.

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