ZM Coiled Spring Update 1

I strongly suspect price will go back up to "retest" the bottom trend line of the megaphone, which is also where the 8ema is. Look at the candles in the chart. Unless you're in a very strong move, and even then sometimes, price loves to "check back" with the 8ema. Also, we made a pretty big move today and we're away from the 3ema as well as the 8ema. When that's true, price likes to check back with the 8ema. Plus we're going to into  overnight trading where traders love to try and swing the chart in the opposite direction from the day session.

So, I entered an order to buy a July 280 Put (with June expiration) at the midpoint of the bid/ask spread when the futures price hits 290.90. I like to shade my exact numbers a little. So instead of saying 291, I used 290.90.

This option currently has a Delta of 33%. If you look at a chart of Option Delta vs Price of the underlying, you'll notice there's an inflection point near 30% and 70% Delta, providing a bit of an acceleration from 30% to 70%.

Of course, price could just start going down from here. If so, I'll figure out what to in the morning.

I have a 1st target at the -61.8% Fib extension, which is 269.90.

I have a second target at 61.8% of a measured move for a megaphone pattern, which is 264.69. See the thick, white, vertical lines with arrow heads.