Real-time options education and strategies
Almost every option ‘expert’ will tell you that any trade that has a high reward/risk ratio will have a low probability of profit or success. And they’d be partially right. But they wouldn’t necessarily be profitable. In fact, I think there’s a high probability that most high probability traders are not profitable in the long … 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
Wednesday, Jan 12th This week’s blog post starts with Wednesday because I wasn’t able to do much the first half of the week. My daughter was home from preschool Monday and Tuesday because of a COVID shutdown, so I didn’t trade much before today. I’ve limped into this little snaggle-toothed position in $TSLA. The position … Read more
I often refer to building a position rather than making a trade. Sometimes a trade is just a trade and sometimes it’s the cornerstone of a new structure. The particular position I’m about to discuss has components of both a trade and the building of a larger position. I hope you’ll find it useful. On … Read more
Monday, January 3 Happy New Year! I hope that you and yours are safe and warm. The first day of the new year was quiet for me. I was busy with other projects and feeling a bit sketched out by the market, so I decided to take it slow. $SPX My only trade of the … Read more
This post is about one of my favorite strategy’s for attempting to profit from a grind higher in SPX. It likely seems a little complicated to someone who hasn’t had any experience with the strategy so this is a reminder here that all of the posts on this blog are strategy’s that Travis and I … 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
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
Paul tweets regularly about the need to be patient for good setups. When you’re patient, trading becomes easy. It doesn’t mean you always win, but it’s easy. Good trades move quickly in your favor, giving you plenty of room to take profit, hedge, and sit through pullbacks. Bad trades break quickly, hand you a small … 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