Skip to main content
Educational material, not financial advice. Nothing here is a recommendation to buy or sell any security. Options involve significant risk and are not suitable for every investor. These are past examples chosen to illustrate a reading; they are not typical results, and past behavior of any setup does not guarantee future results.
On occasion, a heatmap may display a far out of the money (OTM) node that is likely to be speculative, or a decoy. In both cases, read the node with a high degree of skepticism and compare it with the chart to judge whether such a move is realistic.
This heatmap shows a distinct node at 1290, which is roughly 3 times the value of the 1232.5 gatekeeper node and a full 5.5% from where price was trading (1222).However, there are several things to consider before reading it as a target:1) Multiple gatekeeper nodes at 1232.5 and 1252.52) There is a lack of prominent nodes to the upside for the next week over, reinforcing the impression that this node is more likely to be speculative or a decoy than a realistic price target.3) Price would have to run a full 5.5% within 4 trading sessions to reach the node, leaving almost no time for consolidation. With the presence of multiple gatekeeper nodes, buying momentum would have to be significant.