Real-time options education and strategies
Short post today, maybe I’ll add some additional content later. Important price action this week. First, let’s consider SPX daily chart. On Wednesday price gapped up to just below prior all-time-high (ATH) and spent the day rallying and closing near the high. Any large candle on a chart should be treated as a clue to … Read more
Sometimes things aren’t what they seem to be. That’s especially true when looking at charts! You need a method for identifying where buyers and sellers reveal their true intentions. Fibonacci levels can provide the framework for that method! Below is a Tesla (TSLA) weekly candlestick chart from the past. At the time of the most … Read more
Before I get into the details of this post it’s time for another reminder that all posts on this blog, and all of my posts (tweets) on the VegaOptions Twitter account, are for educational purposes only. They are not trading advice! I know that’s a standard disclaimer but it’s something to take seriously. Don’t just … Read more
Over the past couple years on this blog I’ve shown countless option strategies and chart setups with the goal of educating traders on ways to reduce risk in trading. Still, there are many, actually I’d say most, traders who are confused and suffering from information overload and I may be guilty of adding to that. … Read more
This will be a short post which I will revisit and add more content if/when I have time. The topic is the short Diagonal which is a Credit spread. Being a Credit spread means that the short leg is closer to ATM (at-the-money) and the long leg is further OTM (out-of-the-money). Credit spreads have a … Read more
Just a reminder that this, or any post on this blog, is based on trades that I have either placed or considered placing and should not be taken as a recommendation for anyone else to trade! Below is the Daily chart of RUT (Russell 2000 Index). Previously I viewed this chart as a very bearish … Read more
That did not go as expected! When I tweeted posted this on Thursday little did I know that this bearish engulfing candle was only just a stop run as opposed to the beginning of a pullback in SPX! It no doubt shook out many of the ‘late to the party’ traders who tried to jump … Read more
I use Fibonacci retracements & extensions (Fibs) extensively in my trading. Fibonacci sequence numbers (1,3,5,8,13,21,34,etc) have a fascinating relationship with growth rates in nature but that’s not why I rely on them for my trading. The fact is that many (if not most) trading algorithms are programmed to trade Fib levels as both retracements of … Read more
In this post I’m going to look ahead to the end of year rally that I’m expecting and what clues I’ll be looking at for an indication of whether that rally is the start of the next major move higher or just a retracement in an ongoing downtrend. But first I’m going to address the … Read more
This post is about establishing multiple positions in AAPL that are placed in different expiry’s to allow for the harvesting of profits throughout the year. Get it? Apple, harvest…hmmm…tough crowd. 😒 Okay, moving on. This was my tweet on July 22 mentioning the AAPL market profile chart. This post isn’t about market profile so I … Read more