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
I went on a small rant this week on my X timeline (@VegaOptions) about paid advisory services that don’t disclose their actual results. Many traders follow those services and think it’s their fault that they can’t make a profit when the system that they’re trading is flawed and nobody could make money trading it. If … 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
There’s quite a few people on Twitter (X) who are generous with their time and knowledge and Cem Karsan is certainly one of those people. The fact that his tweets (posts) are often cryptic and highlighted by emojis require readers to spend a little time understanding what he is actually saying. In the tweet below … Read more
A quick post regarding a TSLA trade I made this week. I was bearish the stock based on the chart so I made 3 separate trades initiating a new bearish position. The last 2 trades were more expensive than the prior one because I was cost averaging UP. I often use that strategy to increase … 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