The 2021 edition introduces a chapter on how options market makers affect stock movement. Bellafiore provides a simple heuristic: When implied volatility (IV) is high (above the 80th percentile), reduce your share size by 50% but widen your profit targets. When IV is low, increase share size but tighten stops.
While The Playbook is strategic, Bellafiore does not ignore psychology. He argues that having a Playbook is the ultimate psychological tool. the playbook pdf mike bellafiore 2021
At 11:00 AM, a fake news headline spiked volatility. $NVDA crashed $4.00 in two minutes. Leo’s profit evaporated to $300. His fight-or-flight response was a wildfire in his chest. The 2021 edition introduces a chapter on how