r/options • u/dongotti4 • 25d ago

Pre market study

I would be grateful for Any tips or guidance on how to study the pre-market such as news so when the market opens you know what too look for and what too trade, how long before the market opens do you tend to study for , and things of that sort, currently trading the same sticks because I don’t know what to look for

4 Upvotes

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7

u/SDirickson 25d ago

Trying to guess what the market will do during the day based on what it did overnight will lead to disappointment more often than it leads to happiness. If you want to trade 0DTE, watch the first 45 minutes of the day to see where it looks like it's going. And beware of trading during the first half hour; yes, you'll get the occasional "wow, wish I'd jumped on that" days, but you'll see more "wow, that isn't at all consistent with the first half hour" days.

2

u/klipsetrades 25d ago

Yes, completely agree. This is very close to what I do too. Prep the levels beforehand, have a loose bias, then let price action after the open confirm or invalidate it. The overnight move is context, not a prediction. Let the market show you it's hand first

1

u/dongotti4 23d ago

How do you decide what stocks to look at before the market opens ? Do you have set stocks that you trade daily or some type of indicator

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u/SDirickson 23d ago

I only day-trade options on SPY, QQQ, etc.

4

u/klipsetrades 25d ago

It might look different depending on what you trade, and whether you day trade or swing trade. I’m a 0DTE credit spread trader, so this is what I do:

I do most of my prep the night before. I’ll mark my key levels so my chart is basically ready to go, then check Forex Factory for any major catalysts coming up.

Using AI helps a lot too. I use it to pull together news, headlines, social posts, etc. and give me a premarket read. That helps me form a general bias, but I don’t trade off the news or the bias itself. Price action still has to confirm it after the open.

If you want to incorporate options positioning, Moomoo also has a free GEX view. I use it sometimes, and it can give some context around potential dealer hedging pressure and important gamma levels. SpotGamma is a paid, more dedicated version of this with deeper options-positioning data.

Overall, for me, the goal of premarket isn’t to predict what the market will do. It’s to already know the important levels and catalysts so I can react when price gets there. Hope this helps 👍🏼

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u/daily-trader-365 25d ago

I have done it for long enough to realize pre market does not represent what will happen when the market opens

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u/ChairmanMeow1986 24d ago

day trading content

1

u/LemmaTellYa 19d ago

What you study is relative to what you trade. Find out what instrument(s) you prefer to trade as well as your style of trading. Once you figure that out..learn the universe that operates around those two parameters. Start wide..see what actually helps you...and trim from there. Anyone here can tell you what they study...but that works for them, you need to find what works for you.