Real-time options education and strategies
Paul I have some older content that I don’t have in any post so that’s all getting dumped into this post. I hope you find it worthwhile. 2021-08-16 Monday (1) I established a bearish position in SPX on Friday afternoon by buying Sep3 Put Vertical Debit spreads. I already own some DH’d bullish positions in Oct … Read more
(1) Latest update on SPX. Failure to make a new low below the opening range low of 4367.73 is bullish. If price can now get back above today’s 4418.61 high then it’s quite possible that price will not reverse at 4425-4430 resistance. It’s clear why /ES found support here! It was both a (near) touch … Read more
(1) DJI up against strong resistance from 2 sources; one is last week’s HB and the other is from the 8-hour SMA declining upper band. Just because price should move lower from this area doesn’t mean it will however, either way, I’ll learn something about the relative strength of the buyers and sellers this morning. … Read more
(1) Taking a decent size loss on my FB position today yet I have no plans to adjust it as of now. Why? I’ve been maintaining a bullish bias for quite sometime in FB as that is what the longer-term chart has called for. However, on 08-09 I saw a shorter-term bearish setup on the … Read more
Note: I added an update at the end so make sure you read the entire post! If you listen to most ‘experts’ they’ll tell you to spread out your risk by placing many smaller trades to reduce your exposure. I used to do that until I realized that was exactly the wrong advice for me. … Read more
In the past I’ve highlighted many times the importance of the 8 and 20 SMA bands for analyzing price action. I’ve just recently introduced you to the 1.5 standard deviation 20 SMA Bollinger Bands. The Bollinger Bands can add another dimension to your analysis because many of the strongest directional moves occur well away from … Read more
Below are the building blocks for a two trades; the Condor and the RS+. Positions can be built through multiple transactions or they can be initiated as a completed spread. Starting with just the long option allows for the fastest Delta Hedge towards a zero cost position because it takes the greatest Delta risk at … Read more
The Condor is one of the most powerful option strategies for generating a very favorable reward/risk ratio. It can offer generous amounts of long (positive) Theta as well as short (negative) Vega. Being short Vega tends to reward a position where the underlying instrument’s price grinds higher. That is why I often utilize an out-of-the-money … Read more
Lots of traders like to day trade. Some like to swing trade. Most don’t know how to decide between the two. So here’s a thought; how about I let the price of the underlying instrument determine that for me? How’s that work? Read on and you’ll find out! On that risk profile (above) of day … Read more
This post is going to demonstrate how I use Call Condors to initiate longer-term (typically 3 months to 1 year) positions with relatively little directional risk when the trade is first placed. It is a trade that is designed to profit from a trending stock. If you look at the Thinkback chart and risk profile … Read more