How to Use Black Sigma for Options

Squeeze and flush research for options traders - not a typical stock scanner.
Options-focused by design Black Sigma scans the underlying stock for conditions that can matter to an options trade: compression, breakout or breakdown structure, unusual activity, relative volume, liquidity, momentum, and trend. It does not choose a contract, place an order, or guarantee that a squeeze or flush will happen.
1Find BUILDING

Start with a move that may be forming. Do not chase one marked ALREADY RAN.

2Check the 5 lights

More green lights mean the stock evidence lines up. The score is not a win chance.

3Check the contract

Open your broker. Check spread, volume, open interest, IV, time left, and earnings.

4Set max loss

Know the most you can lose. If the risk is too large, save it or skip it.

1. What the scanner is looking for

LaneResearch use
SqueezesPotential upside expansion including momentum, compression, short, gamma, delta, liquidity, failure-to-deliver, and volatility squeeze hypotheses.
FlushesPotential downside expansion including momentum, capital-exit, gamma, stop-hunt, margin/liquidation, VIX/macro, and thin-liquidity flush hypotheses.
Macro / ETFBroad-market, index, volatility, rate, and sector context that can strengthen, weaken, or invalidate an individual setup.

Signal families

FamilyWhat must be confirmed
Momentum / compressionPrice structure, relative volume, liquidity, trend, and whether the move is early, firing, or already extended.
Short / FTD squeezeCurrent short-interest, borrow, float, settlement data, a real trigger, and enough liquidity to enter and exit.
Gamma / delta squeezeA current option chain, strike-level open interest, volume, Greeks, expirations, spot price, and an explicit dealer-positioning model.
Gamma flushThe same live options evidence plus a bearish price trigger. Gamma direction cannot be inferred safely from stock candles alone.
Liquidity / margin flushWeak bids, abnormal volume, failed support, market-wide stress, and evidence that selling is more than an ordinary pullback.
Stop hunt / capital exitSupport failure, reclaim or continuation behavior, volume, fresh news, and evidence separating a temporary sweep from sustained selling.
VIX / volatility eventIndex breadth, volatility term structure, event timing, and option pricing. A volatility spike can reverse quickly.
The scanner finds hypotheses, not every possible market event. Markets can move for reasons outside these labels. Gamma classifications should appear only when the required live option data is available; otherwise the card stays unverified.

2. What each score means

ColumnWhat it means
ScoreThe underlying setup grade, 0-100. 80+ strong alignment, 65+ worth research, gray too thin or weak.
ChecksThe five-condition count. More checks means more of the setup is aligned.
Darvas1 breakout, 0 inside the range, -1 breakdown.
RelVolCurrent share volume compared with normal. 2 means about twice normal volume.
ATR%Underlying movement range. Higher values can create opportunity but also increase option risk.
SqzHit%Historical follow-through after a squeeze state. The sample count matters; a tiny sample is not reliable.
FlowShows unusual options or off-exchange activity when the licensed feed has usable data. Use price and current news to confirm direction.
RTFReady to Fire: the underlying is attempting to trigger now.

Timing stage

StageHow to read it
EARLYCompression is building, but the directional trigger is incomplete. Watch instead of predicting.
FIRINGThe underlying is attempting a directional break with supporting activity. Verify the option chain before acting.
WATCHSome evidence is present, but the setup is not fully aligned.
EXTENDEDThe move is already large relative to normal range. Chasing can create poor risk/reward.

The card's Setup Confidence Check separates underlying evidence from option-contract data. A strong underlying score is not a win probability, and a contract remains unverified until spread, volume, open interest, IV, DTE, and earnings are checked.

3. The options contract check

  1. Confirm the scanner setup is liquid and not gated.
  2. Open the option chain at your brokerage.
  3. Check contract volume, open interest, and the bid/ask spread.
  4. Check implied volatility and whether earnings or major news is close.
  5. Choose an expiration and strike that match your plan and risk limit.
  6. Decide the maximum loss and exit rules before entering.
Black Sigma does not currently provide a complete live option chain. A stock can have a strong setup while its option contracts are still too expensive or illiquid.

4. Account size and the $100 reality

A $100 account is lottery-like for live options. One contract can consume most or all of the account and can expire worthless. Being emotionally prepared to lose the money does not improve the odds or make the trade suitable. Black Sigma will show research, but it will not label a $100 option purchase safe or dependable.

5. How to apply for options access

Your WallStreetHustler login does not enable options trading. Options approval must come from your brokerage.

For Schwab / thinkorswim accounts

  1. Sign in to your Schwab account.
  2. Open Profile, then Margin & Options.
  3. Select the brokerage account you want to use.
  4. Choose Apply for under the options approval level you need.
  5. Complete the brokerage application accurately and wait for its decision.

Schwab approval is not automatic. Strategy access depends on the level your brokerage approves. Use Schwab's current instructions: How to apply for options trading.

6. Extra intelligence

The Option Check page adds three read-only research views. Missing live fields remain marked unavailable:

7. Timeframes and exits

Important: WallStreetHustler and Black Sigma are independent educational research tools and are not affiliated with or endorsed by Charles Schwab, thinkorswim, Polymarket, YieldMax, or any other issuer shown. Options involve substantial risk and are not appropriate for every investor. Scanner scores describe historical market conditions, not expected returns. No signal is a recommendation, and no outcome is guaranteed.