🚨 I’ll be live at 10 a.m. ET with Graham Lindman🚨
We’ll do a training session on Graham’s undefeated gold trade that we’ll enter on Friday during the show, the difference between debit and credit spreads and more [tap to join us for Opening Playbook]
You know what most traders get wrong about options?
They look at implied volatility, check the Greeks and analyze the chart — but they miss the most important question: How is this stock actually moving versus how the options are priced?
That gap is where the real opportunity lives.
I’ve built a straightforward way to find it every single day. It’s not meant to tell you to go buy Apple (AAPL) or anything else — it’s simply a clean snapshot that gives you context for the day and helps you decide which strategies fit the current environment.
Movement Ratio Explained
The movement ratio compares how much a stock has actually been moving relative to what the options market expected.
If a stock was expected to move 2% but only moved 1%, that’s overpriced behavior. If it was expected to move 1% but actually moved 3%, that’s underpriced behavior.
It’s a simple comparison, but it exposes pricing inefficiencies fast.
2 Buckets, 2 Strategies
I divide the entire market into two buckets using that movement ratio.
The first bucket is overpriced stocks — names where options are priced rich compared with real movement. That opens the door for income trades because overpriced options are great for premium selling.
You collect more for the same level of risk and the stock often moves less than the options imply.
The second bucket is underpriced stocks — names where the stock is making bigger moves than the options market accounted for.
That sets up directional opportunities because you’re getting movement at a discount.
Both sides rely on the same principle — understanding how the stock behaves versus how the market prices that behavior.
Putting The Tools To Work
Every day, I run a full set of tools to help make sense of the market.
The movement ratio is the core, but it’s not the only lens. I also look at a daily currency snapshot to see whether moves in gold, silver or Bitcoin line up with shifts in the dollar.
Sometimes that macro backdrop adds important context.
Another tool I rely on is the Top 100 heat map. It’s a simple but powerful way to see what’s happening under the surface.
If the indices are green but the heat map is mostly red, that tells you the rally isn’t healthy. If the heat map is broadly strong, it helps confirm the strength of a move.
Here’s a quick example of how these tools come together.
Recently, the heat map showed strong activity in large tech names while the movement ratio flagged one of those names as underpriced.
The options were implying muted movement, but the stock had been consistently outpacing those expectations. That combination made it a clear directional candidate, and the follow-through lined up exactly with what the tools suggested.
So next time you’re evaluating a trade, step back and ask: is this stock moving more or less than the options are pricing in?
That single question can reshape your entire approach to the market.
Now don’t forget to join us at 10 a.m. ET weekdays for Opening Playbook, and at 3:30 p.m. ET Closing Playbook!
Nate Tucci
Tucci Trades
You can also follow along and join the conversation for real-time analysis, trade ideas, market insights and more in my official Telegram channel!
Important Note: No one from the New Money Crew team or Tucci Trades will ever contact you directly on Telegram.
*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.Â
How to Target Decent Overnight Payouts This Week
There’s almost nothing better than waking up to fresh deposits in your account.
I know this because traders who followed my No. 1 overnight setup have received eight of those deposits in a row.
That’s eight consecutive trades where they collected payouts averaging about 25% overnight.
Now, I can’t make absolute guarantees about what the market will do next.
But if conditions cooperate, we may be able to keep this streak going.
We’re already lining up new trades for this week. And if you’d like to see how you can join the next overnight opportunity…
Disclaimer: We develop tools and strategies to the best of our ability but no one can guarantee the future. There is always a risk of loss when trading. Past performance is not indicative of future results. From 10/02/24 to 01/29/26, the average win rate was 80.2% on live published trades. The average return on options trades was 1.95 % over a one-day hold time, with an average winner of 23.88%
