Price trades in a wide range, the edges of which are defined by the presence of at least two high value nodes with few prominent nodes in between.
HOW TO APPROACH
Approaching a Whipsaw pattern is similar to trading a range - the highest risk/reward opportunities lie in fading the edges of the range. It is strongly advisable to avoid initiating a position in the middle of the range, especially with 0DTE options, as theta decay and the unstable behavior of price can rapidly erode premiums.
EXAMPLE 1
Price is oscillating between the 6650 and 6675 strikes. (09/24/25)
EXAMPLE 2
Price is fluctuating in a loose range between 6545 and 6480. (09/09/25)
EXAMPLE 3
Price is oscillating between the 6480, 6460, and 6440 strikes. Note that in this example, there are four high value nodes of interest. (09/05/25)
