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The 15.87 Rule
How far the index is priced to move today, and how many of those points your contract actually needs before 11:30.
You called the direction. The contract still went red.
That is not bad luck. It is arithmetic, and it is decided before you click buy. This is the 16-page version of that arithmetic.
What is in it
Page 3, the formula.
Divide the VIX by 15.87 and you have one day of range in percent. Multiply by the close and you have it in points.
Page 4, the five lines.
The two walls, the two halfway lines and the close, drawn on a real session.
Page 6, the worksheet.
Five blank lines you fill in by hand before 9:30. If you cannot write all five numbers, you do not trade.
Page 9, the clock.
What an option loses between 11:30 and 13:30 with the index flat, and why the window closes when it does.
Page 12, one full setup.
The Three-Ticker Break, written out. The box, the trigger, the stop, the target and the clock.
Page 5, the second wall.
How to find the same level from the option chain, and which of the two to trust when they disagree.
And every weekday at 08:00 AM ET
The day's expected move in points, the full range, the two halfway lines, where the futures trade against them, the VIX regime and the plan for the open. SPX, SPY and /ES. Two minutes on your phone.
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