Opening Dip Reclaim (ODR) Strategy
A disciplined 20-minute SPY options playbook designed for the market open volatility window (6:33–6:53am PT). This strategy focuses on capturing the reclaim of opening dips with strict risk management.
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Position Tracker
Waiting for EntryODR Strategy Simulation
Good DayClean dip and reclaim pattern leads to profit target
Signal Timeline
Market opens. First 5 minutes establish the Opening Range (OR). Watch for high and low of this period.
OR High: $585.19 | OR Low: $584.86. Now watching for price to dip to VWAP or OR Low.
Price dipped to VWAP zone ($584.84). This is the first condition for entry. Now watching for reclaim.
Price closed back above VWAP ($584.54). Second condition met. Now need hold confirmation.
Price held above VWAP for 2 consecutive candles. All entry conditions met!
Enter LONG at $584.52. Buy 0DTE/1DTE Call at nearest strike. Set stop loss at -25%.
Exit at $585.95. +20% profit target reached. Close position and done for the day!
Opening Range Begins
Market opens. First 5 minutes establish the Opening Range (OR). Watch for high and low of this period.
Core Concept
The ODR strategy capitalizes on a common market pattern: the initial volatility at market open often creates a dip that gets reclaimed within the first 20 minutes. By waiting for confirmation of the reclaim, we enter with higher probability setups.
The Pattern:
- 1. Market opens with volatility (6:30 AM PT)
- 2. Price dips toward VWAP or Opening Range Low
- 3. Price reclaims the level and holds
- 4. Enter long on confirmation, exit at target or time stop
Entry Criteria
Wait for Opening Range (6:30–6:35)
Mark the high and low of the first 5 minutes
Price dips toward VWAP or OR-Low
Wait for the dip, don't chase
Reclaim + Hold confirmation
Price closes above level AND holds for at least 1 candle
Trend filter passes (Safer Mode)
Price above Premarket VWAP OR Yesterday's Close
Exit Rules
Profit Target
Take profits at +20% premium (adjustable 10-35%)
Stop Loss
Exit at -25% premium (hard stop at -35%)
Time Stop
Exit by 6:48-6:50 AM PT regardless of P/L. Must be out by 6:53.
Risk Management
One trade maximum per day
No revenge trading after a loss
Daily loss cap: $60 (adjustable)
One mistake can erase multiple small wins
Limit orders only
Never market order at the open
1DTE ITM recommended
Better survivability than 0DTE
What NOT to Do
Don't buy red panic candles during the dip
Don't enter before 6:35 AM PT
Don't hold past 6:53 AM PT
Don't trade on major news days without extra caution
Don't average down on a losing position
Don't take a second trade after hitting daily cap
Safer Mode (Recommended)
Safer Mode adds additional filters to reduce the number of trades but improve quality:
1DTE ITM contracts only
No 0DTE trades for better survivability
Trend filter required
Price must be above Premarket VWAP OR Yesterday's Close
Trend Filter Options:
- OR (default): More practical, more trades
- AND: Stricter, fewer but higher quality trades
Trading Timeline (Pacific Time)
6:30 AM — Market Opens
Do nothing. Let spreads stabilize. Confirm no major news.
6:33 AM — Preparation
Begin marking Opening Range. Turn on VWAP indicator.
6:35 AM — Opening Range Complete
OR High/Low established. Watch for dip toward VWAP/OR-Low.
6:35–6:45 AM — Entry Window
Wait for dip + reclaim + hold. Enter only on confirmation.
6:48–6:50 AM — Time Stop Warning
Begin exiting if target not hit. Don't hold hoping for more.
6:53 AM — Hard Exit
Must be completely out of position. No exceptions.