Real-time options education and strategies
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
Friday Most of my efforts today were spent adjusting unhedged open positions. I also added positions in UPST. I now have open swing positions in four different names. That’s my max. I may add to/adjust these positions, but I won’t open positions in any other names until I close some of these. $AAPL After testing … Read more
We have a certain technique that we utilize at Vega Options to help identify a good trade location if a candle (on any time frame) appears to be a significant reversal or continuation candle. We’ve introduced it before in this post called The Law of the Large Candle. It essentially looks at any significant candle … Read more
The HB zone represents the 50%-61.8% retracement of a price range. The price range can be from a pivot low to high or on just a single candle’s range. What type of candle would I apply the HB zone to? When a particularly large candle with a long wick forms on a chart I’ll use … Read more
Tuesday, October 12 I can’t trade much this week. My only active position is a small trade in SPY. At about 12:30 Monday afternoon, SPY went 3d on the daily chart while simultaneously dropping below its opening price and the upper band of the descending-to-flat 8-day SMA bands. Over lunch, $SPY tried and failed to … Read more