Black Sigma Research Playbook
A repeatable workflow for turning an underlying squeeze or flush observation into a structured options research decision without pretending the scanner can see or guarantee the future.
Five-step daily workflow
What the lanes include
- Squeeze: compression, breakout pressure, upside expansion, short-covering, gamma-sensitive acceleration, and failed squeezes.
- Flush: support failure, downside expansion, forced selling, volatility spikes, gamma-sensitive downside, and bear traps.
- Macro / ETF: broad-market, volatility, sector, income-ETF, crypto-linked, and event context that may support or conflict with a setup.
How to read the score
- The 0-100 number is a setup-quality score, not win probability.
- Read component evidence: breakout, volume, flow proxy, liquidity, momentum, trend, and squeeze state.
- EARLY means compressed; FIRING means a trigger appeared; EXTENDED means the move may already exceed its normal range.
- Missing option-chain fields are blockers, not permission to assume favorable contracts exist.
Structure risk lanes
Cash-secured or covered structures only when assignment and stock ownership fit the plan.
Long calls/puts or vertical spreads with known maximum loss and acceptable liquidity.
Short-dated or far-out-of-the-money contracts can lose the full premium rapidly.
Roll-forward research rule
If an underlying moves through a strike, do not automatically chase. First compare the open contract's remaining delta, IV, spread, time value, taxes, and exit liquidity against a later-dated or farther-out strike. A partial exit plus a smaller defined-risk continuation can reduce capital at risk, but rolling realizes one outcome and opens a new trade; it does not erase a loss or guarantee more upside.
Small-account reality
The scanner requires at least a $100 research budget input on the strategy page, but $100 options activity is extremely speculative. One contract can consume most of the account, diversification is limited, spreads and fees matter more, and total loss can occur. The app should present education and paper research first, never promise that a stock is “great” or that a member has a high chance of winning.
Income structures
Covered calls, cash-secured puts, defined-risk spreads, and option-income ETFs each trade income for different upside, downside, tax, distribution, and volatility exposure. Distribution yield is not total return. Use the Income ETF radar as a research universe and review each fund's strategy, NAV path, distribution history, underlying exposure, and prospectus.