Real-time options education and strategies
(1) Posted this /ES chart on the twitter feed today (see tweet at the bottom of this post). Some textbook examples to help you with understanding price action. The chart was prior to the open of regular trading hours. This chart was from 4 hours after the open. Price broke-out above the 4455 bull/bear line … Read more
Last weekend I posted this analysis of the NFLX price action plus the chart below: 2021-08-15 Sunday: Over the past four weeks NFLX has squandered numerous opportunities to begin a longer-term rally based on a bullish setup. The lower band of a rising 8 SMA is a very good location for a long (bullish) trade. … Read more
The most basic definition of a trend is based on the high and low prices of an instrument. Above is the daily chart of MU but it could be any stock, ETF, index or commodity. Virtually all price charts exhibit the same patterns and behaviors! Let’s start at number 1 on the chart. As you … Read more
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
(1) Taking a decent size loss on my FB position today yet I have no plans to adjust it as of now. Why? I’ve been maintaining a bullish bias for quite sometime in FB as that is what the longer-term chart has called for. However, on 08-09 I saw a shorter-term bearish setup on the … Read more
Note: I added an update at the end so make sure you read the entire post! If you listen to most ‘experts’ they’ll tell you to spread out your risk by placing many smaller trades to reduce your exposure. I used to do that until I realized that was exactly the wrong advice for me. … 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
The Condor is one of the most powerful option strategies for generating a very favorable reward/risk ratio. It can offer generous amounts of long (positive) Theta as well as short (negative) Vega. Being short Vega tends to reward a position where the underlying instrument’s price grinds higher. That is why I often utilize an out-of-the-money … Read more