Real-time options education and strategies
Paul Are you the type of trader who likes your profits as soon as you can get them or would your rather let them ‘run’ with the potential of a much larger profit later? Not sure? Maybe a little of both types? Here’s what I typically do. As a trade progresses with a profit I like … Read more
Oct1 Added a 5-lot of Calls to hedge my ES position as I expect price to rally at least to 4341 today as long as 4293 holds as support. Below is my current risk profile. Below is the ES chart showing where I’ll hedge my hedge. Sep30 The overnight price action in ES is quite … Read more
(1) My portfolio was long about 35 SPX Beta Weighted Deltas after the close yesterday. Not a lot compared to my typical position but certainly enough to protect. With the prospect of a government shutdown looming the indexes could take a hit here. Overall I think the indexes, especially small caps (RUT), will rally strongly … Read more
A very clear four-step setup to see this long opportunity in IWM!
Today is Fed Day! Hooray! 🙄 (1) I’ve mentioned in the past how the 8 SMA can not only be used for identifying trend (upward or downward sloping) and trade location (long at rising lower band, short at declining upper band) but it can also be used for timing purposes. See SPX example below. If … Read more
(1) /ES just prior to the regular hour’s open. Price is failing to find support at the rising 8-hour SMA lower band. It should find support there if buyer’s are strong. Support also in the 4347-55 area where yesterday’s HB and last week’s low are located. Dropping below 4347 would be bearish and would next … Read more
Very important concept tweeted by Steve Burns and validated by the ‘Horse’. They both know what they’re talking about. Sounds good in theory but how do you do that? That’s what this post is about. Read it, understand it, trade it. Ask questions if you don’t get it! Step 1: Wait for a setup that … Read more
A short squeeze often seems to come out of nowhere but if you look at the price action preceding the squeeze you’ll usually see clues that it was about to occur. See the notations on the ES (S&P 500 futures) 60-minute chart below. As you can see, some of the important levels often reveal themselves … Read more
This is from the twitter feed today. Good lesson on price action!
(1) Yesterday’s daily candle in AMZN looked like a bearish reversal candle and many traders will have established a short position prior to the close. I view that candle as a potential bearish reversal and I won’t initiate a short unless price drops below yesterday’s low. If you look at enough charts you’ll see numerous … Read more