Options
Same ORB Signal. Two Very Different Ways to Trade It.
Date: 2026-10-13 12:15:24
An Opening Range Breakout does not have to be traded one way.
A credit spread version can potentially work even if price moves sideways, pulls back somewhat, or simply stays away from the short strike.
That flexibility comes with a tradeoff:
Smaller potential winners relative to the loss.
A long-option ORB does almost the opposite.
It may be wrong more often, but when it catches a strong trend day, the winner can be much larger.
Neither approach eliminates risk.
They simply express the same ORB idea differently.
From there, the next step is testing:
• 15-minute vs. 30-minute vs. 60-minute opening ranges
• Upside breakouts vs. downside breakouts
• SPX vs. XSP
• Breakout strength
• Retests
• Time-of-day rules
• Volatility conditions
But do not add every filter at once.
Start with a baseline.
Change one variable.
Test again.
Otherwise, it becomes very easy to build a backtest that explains the past perfectly instead of creating a strategy you can actually evaluate.
Educational content only. Options involve risk. Backtests are hypothetical and do not guarantee future results.
#OpeningRangeBreakout #ORB #Backtesting #OptionsTrading #SPX #OptionAlpha
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This video is for educational purposes only and is not a recommendation for buying/selling any security. Options trading is risky, so please read our full risk disclosure here: https://optionalpha.com/legal/risk-disclosure-agreement
