Real-time options education and strategies
Today is Monday, 4/11/22 and the trading day is over. Prior to last Friday’s close, I had a bearish bias on SPX. The price action that led me to that bias is well documented here in the blog post Understanding Price Action. Based on that bearish bias I initiated 2 new positions. In the first … Read more
I review the hourly and daily charts after the end of each session but on weekends I include a review of the longer term charts such as the weekly and monthly charts. Understanding price action on the longer term charts adds important context to the shorter term chart price analysis. I use the next few … Read more
This post jumps around to different time periods and different charts because it’s actually a compilation of various observations and twitter threads from over the past year. Each section doesn’t really connect to any other section except in the most important way; they all deal with price action and chart analysis which I have successfully … Read more
Part 1 Below is the Amazon (AMZN) daily price chart. I have removed all moving averages and prior period pivot levels that I typically show on my charts and there are certainly no indicators such as RSI, MACD or any other unnecessary momentum indicators that I don’t show on my charts. Just price is showing! … Read more
Below is a list of the transactions that I’ve made in the SPX options with an Apr14 expiry. There was a total of 8 trades with 9 fills (1 order required 2 fills to complete). The first 3 trades resulted in a net loss of $5,580. Oops. 😕 This is an expected outcome in trading! … Read more
During the overnight session on 02/20/2022 the following setup in Bitcoin presented itself. I decided to do this post because the setup is as textbook as they come! All comments in this post are referring to the hourly chart but these setups work on all timeframes. First, price had experienced a sharp (impulsive) decline from … Read more
Anyone who follows me @VegaOptions on twitter knows that my charts look different than most anyone else! First, I don’t use RSI or MACD or any other second derivative of price. I follow price instead of some derivative of it. It’s true that I use moving averages also but I have found over the years … Read more
It’s not uncommon to see a candle with a long wick appear at the high or low of a price move. Often that’s a great opportunity to initiate a position but how do I know if that candle is a true reversal or not? The answer is that I don’t as of the close of … Read more
All charts in this post are the weekly time frame. For most of 2021, $AMZN has been consolidating under last year’s high. Five times, $AMZN has broken last year’s high and failed. Four times, the breakout failed within the week. Once, in July, the breakout held for three weeks before collapsing back into range on … Read more
Monday Today was a grind for me. My open positions managed to grind out measly profits, but nothing else I tried worked. One position stopped out immediately. Two stock trades ran up big off the open and then slowly bled out for the rest of the day. On one option play, I mistyped my limit … Read more