Real-time options education and strategies
A treader needs the courage to trade when the setup is good but it feels bad. Shorting AAPL while it appeared to still be in an uptrend felt bad. I don’t like shorting stocks in an uptrend but when the price action is telling me, no, not telling me, screaming at me, that this rally … Read more
If I handed you a book and said that it had information in it that could potentially make you a great deal of money I’ll assume you’d open it with great anticipation. You might think “I’ll just read the book and start making money right away, what could be easier than that?” You open the … Read more
Some traders may use the SPX short Call Diagonal simply as a way to collect premium and focus less on the potential directional implications of that trade. That isn’t the way that I trade them because I have certain directional expectations based on chart setups. On the chart (below) I show 2 setups. There are … Read more
If I could summarize the overall theme of this blog in one sentence it would be this: spend most of your time figuring out how you’re going to reduce portfolio risk! I think most traders put on a trade and then stick with it until it either goes bust or the pain of holding it … Read more
Let’s say I’m looking at the daily candlestick chart of Apple (AAPL). The IF/THEN of chart analysis goes something like this: IF the prior candle is bullish THEN price should find support at or above the Fib support zone of that prior candle. IF price opens the following day below the Fib support zone THEN … Read more
Below is a description of how I traded Tesla this week. This post, as well as all of my other posts on this blog, are for educational purposes. They aren’t trading advice. You should never risk your capital based on how someone else trades. Learn from others then develop your own trading style which suits … Read more
COST has been is a year-long rally where the stock is up over 100%. At no point during that rally has price pulled-back to the 50% – 61.8% retracement Fib support zone drawn from the 3/5/2021 low to the most recent high. The Fib support zone here is drawn from that low to the 4/7/2022 … Read more
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
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