Real-time options education and strategies
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
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
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
The 30 minute chart with the weekly high, low, and half-back (50% retracement) lines automatically drawn. For TOS users here’s a link for that chart setup: https://tos.mx/CKQburZ. Everything is explained on the two charts. If you have questions or comments you can contact me through the twitter feed.
The SPY was showing signs of weakness on Wednesday even as the daily candle was forming a large 2u candle. Market profile helps expose the internal structure of the daily candle and allow for a look ‘under the hood’. The emotional buying on Wednesday led me to tweet this observation. Below is the actual chart … Read more
Before I go into the specifics of these trade scenarios using the SPX daily chart I want to make the point that I use the same strategy with the same parameters on charts on all time frames. The levels referenced in this post are based on the prior candle so the same analysis applies to … Read more
The first step in my process of initiating a new option position is identifying a promising chart setup. I’ll consider setups on various time frames anywhere from the 65-minute charts all the way up to the monthly charts. My typical trades originate from the daily and weekly charts but I’m always looking for the best … Read more