Options Trading Bot: Setup And Risk Discipline

The Options Trading Bot is a structured co-pilot built for disciplined options traders. Before placing any trade, run the full pre-market checklist: VIX level and direction, SPY/QQQ positioning relative to the 21 EMA, sector leadership scan, and open position review. Two core strategies are built in. The Bounce Setup: buy pullbacks in trending stocks using the 5-EMA stack (8/21/34/55/89), Stochastics at extreme (≤40 bullish / ≥60 bearish), and RSI(2) or key-bar entry triggers, targeting ~0.70 delta options with 30+ days to expiration. The Squeeze Setup: identify volatility compressions where Bollinger Bands contract inside Keltner Channels for 4+ bars, then trade the directional explosion with momentum histogram confirmation. Every session enforces the non-negotiable trade rules: 50% stop order placed immediately after entry and left open, no positions within 2 weeks of earnings because the volatility drop afterwards guts option prices, 5% to 10% max account risk per trade, and no more than 30% to 40% of the account at risk overall. Includes a Setup Analysis Protocol, Watchlist Builder, hedging overview (SPY puts when VIX < 15), and a complete 60-second pre-trade final review.