Options-strategy
How to use call option buy or sell indicatorHello Traders,
Exciting news! We've just released a detailed video guide on how to harness the full potential of Chobotaru Brothers Option Indicators. In this short tutorial, we cover everything you need to know to use the indicator, specifically focusing on out-of-the-money call options.
Here's what you'll discover in the video:
1. Adding the Indicator to Your Chart:
Learn the simple steps to seamlessly integrate Chobotaru Brothers Option Indicator into your trading view for a clear and concise analysis.
2. Finding Option Parameters:
Navigate through your broker's option chain on platforms such as Interactive Brokers to locate all the essential parameters needed for effective trading decisions.
3. SEE the Lines of Profit:
Gain a deep understanding of the meaning behind each line of profit displayed by the indicator, empowering you to make informed choices based on market movements.
4. Utilizing Lower Timeframes (Example of 5m and 30m):
Explore the versatility of Chobotaru Brothers Option Indicator by discovering how it can be effectively applied to lower timeframes like 5 minutes and 30 minutes.
5. LIVE Example: Out-of-the-Money Call Option:
Follow along with our real-time example using an out-of-the-money call option, providing practical insights into how EASY is the indicator's functionality and application in a live trading scenario.
We've designed this tutorial to be beginner-friendly, ensuring that traders of all levels can seamlessly integrate Chobotaru Brothers Option Indicators into their trading arsenal. Watch the video, enhance your trading skills, and unlock the potential for greater success in the options market.
If you find the video helpful, don't forget to like, follow, and share it with your fellow traders. Happy trading, and may your profits soar!
Best regards,
Chobotaru Brothers
Safer way to Be long BABA DOTM 80 PutHi everyone,
China this am came out with a better tone toward their tech industry and markets.
Assuming that geo political events do not get worse between the USA vs China.
I am making a Long term asset accumulation bet on Alibaba
1) I discuss straight stock asset ownership
vs
2) Getting an income by selling the deep out of the money 80 strike September put for $9.15 resulting in a
11.43% ROI as of this writing, also providing us a safety of margin from current $97 price to 70.85 assignment cost
2 Outcomes
a) stocks goes up and stay above the 80 strike by the September Expiration date we pocket the 11.43% or $9.15
b) Stocks tank below 80 get called and I own Alibaba stock the asset, at a price I already decided was a comfortable and good support around (assignment price $80-9.15)=70.85
Hope it helps this strategy is only valid with two things in mind
1)buy asset you love and want to keep for the long term
2)be prepared to hold if it goes below 70.85 and be confident enough of the long term 5-20 years for the underlying stock as an asset in this case Alibaba
Hope it helps
Marc
$QQQ the ETF based on Nasdaq is creating a Bullish Hammer The popular QQQ ETF based on Nasdaq Top 100 shares is creating a Bullish Hammer in the chart. The ETF is almost at 52 Wk Low and much away from 50EMA. So, this could possibly be a swing trade opportunity if it reverses from here.
However, the market in general is still bearish and the fear is that, it would remain so for the next few weeks if not months.
EUR/USD 20 year low what happens with Peace?EUR/USD has taken the brunt of the USD strength since the Ukraine War and Russian sanctions soured the economic outlook of the Eurozone.
What happens with peace? Well obviously we rally but the argument is that with the ECB acting as well we will not just bounce but fly back above EUR/USD 1.10.
Now timing this potential outcome is the issue and we could rally organically from 20 year lows if the USD weakens as well.
FX Options are a solution and on our easyMarkets Options are made accesible for everyone. 3 month EUR/USD is currently 240 pips so we have a long time for peace with a maximum loss of 240pips.
For more information on Options, Professional traders will get a 1-1 tutorial from a FX options Dealer.
Shorting GPS and Buying PLUGOnly placing two trades for tonight's open.
First one will be shorting The Gap
Short a naked call at 38 strike for $1.04, going to mange it for 45 days.
Or close it when it goes above $1.22
Lastly I'm going to buy PLUG as a ratio spread
Short two contracts at the 26 strike and brought the 28 strike for $1.27.
FB Buy Zone(s) IdentifiedPlaying around with some technical analysis tonight.. I found a found a pretty decent buy zone for FB.
In the video I explain how I identified it.. I also go into a little bit of detail about how I chose the the option contract I'd like to play.
I hope you enjoy! Sorry if it's a bit awkward, it's my first video upload.. More to come, I hope! Have a good one, everybody.
Please reach out with criticism or questions! I'm happy to engage with any trader.