How to Profit from Pin Action Combined with Opening Range Breakouts

November 18, 2019
/ Jeff Cooper No Ads
/ By Jeff Cooper

With the advent of weekly options in addition to monthlies, there is more opportunity for game theory to exert its influence on stock prices in a short period of time.

By game theory, I mean the gamesmanship for a stock to be accumulated and then driven by players to be pinned to a much higher or lower strike price within days.

Below are two examples of such action last week in ROKU and CRWD… both of which were highlighted on the private Hit & Run Twitter feed.

CRWD struck a potential W Bottom from October 22 to November 8, setting up a rally on a breakout early last week.

A 10 min CRWD below shows a breakout on Wednesday put CRWD in a position to challenge the 50 strike.

Note the Opening Range Breakout on November 13.

An ORB is a breakout over the first 30 mins range.

When CRWD cleared the 50 strike with authority on an ORB on November 14, it telegraphed an agenda to the 55 strike.

On Friday, an ORB above the 55 strike put in play a spike to the 60 strike.

Opening Range Breakouts do a good job of unveiling a hidden agenda for Pin Action to a higher (or lower) strike.

ROKU saw an earnings air pocket on November 7.

Be that as it may, an ORB on November 11 and again on November 12 implied ROKU was set to challenge the open gap.

When ROKU offset the open gap from November 7 last Thursday, November 13, an ORB telegraphed there may be Pin Action and an agenda to drive it to higher.

Reclaiming the 140 strike and the gap signaled a push to 145 or higher.

In keeping with our tweets to subscribers on Thursday and Friday morning, ROKU saw a Gap & Go above the 150 strike and an Opening Range Breakout suggested a possible push to as high as 160.

ROKU traded to as high as 158.23 on Friday.

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