Options flow gives ideas for Intraday Trading - daily projectionOptions flow gives big edge on market, very often predicting moves before they happen on Futures instruments. By applying custom indicators reading Options flow data, it is possible to receive levels that can play important and leading role in Intraday Trading. When we add to this basic understanding of market mechanics, then we can have significant edge in trading. Still this is not Holy Grail, but though accurate strategy. All potential moves are explained and described on charts. Enjoy!
Options-strategy
OptionsTrade for RelianceBuy Reliance 2160CE@90-100 and for hedging sell 2 Lots of 2260CE@45-55. Margin will be required to short 2 lots of options.
Buy 1Lot of Reliance Future strictly above 2240.
Disclaimer :
Trading is never ever recommended as it is injurious to mankind. This is purely my study based on technical charts and for educational purpose only. Please do your analysis before taking any trades given by me. I MUST not be held responsible for any profit or loss out of any trades you take on our advice. All Disclaimers Apply.
S&P500 SPX week 34 preview and trading ideaYesterday (Monday 23 Aug), the market quickly recovered the last week correction and is trying to test the $4500 level. The S&P 500 E-mini Futures tested the $4492 level around 08:00 AM (London Time, GMT+1).
The previous correction lasted about 5 days and it took about 5 days to recover. This correction, as well as the recovery, lasted both 2 days. After the breakout of the previous resistance level, we expect a trading range of around 66 points ($4455 – $4520).
The focus of the week is on the Federal Reserve policymakers’ virtual appearance at the bank’s annual Jackson Hole Economic Policy Symposium (Thursday – Saturday). Fed Chair Powell will speak on Friday. This event, as well as other factors such as the “New Home Sales”, “Core Durable Good Orders”, “Crude Oil Inventories”, “GDP Q2”, “Initial Jobless Claims”, etc. will add volatility to the week.
This week’s trading idea is to sell the 4535/4540 vertical call spread with expiration 27 Aug 2021 for a credit around $0.55 against a $5 collateral.
(Re entry) XRT ETF Bullish inclined Naked Puts 20 Aug ExpiryRe entered this trade as it seems like the market is stabilizing and did not continue it's drop. This drop was due to the inflation concerns and the increasing delta virus cases in US
Sold 45 Puts @ 0.53 Strike 86
BP Block: 54K
Max Gain: Est $2385
% Distance to Strike: 10.76%
BOIL ETF Bullish inclined Naked Puts 20 Aug ExpiryBoil is a new ETF that I am trading to shield myself from inflation concerns. So far it has only risen even when inflation concerns are impacting the market negatively, even oil and gold saw drops.
I entered two trades with one being tighter than the other (Trade 2), with a bid to get a better price at a strike supported by a strong resistance and bullish momentum. Still in hindsight I think this is a tad too aggressive. Will not do this again.
BOIL is based on Natural Gas Futures.
Prices for the fuel are soaring across the globe as scorching weather stokes demand for electricity to run air conditioners.
In the U.S the rally is also underpinned by concern about a potential supply shortfall in the winter, when gas consumption peaks as homes and businesses crank up the heat. Stockpiles are already below normal for the time of year, and production growth has been restrained
Gas only makes up 34% of total US energy consumption
Trade 1
Sold 12 Puts @ 0.90 Strike 34
Max Gain: Est $1080
% Distance to Strike: 20%
Trade 2
Sold 23 Puts @ 1.20 Strike 38
Max Gain: Est $2760
% Distance to Strike: 7.82%
Total BP Block: 75K
$NIO prepping for a moveNIO just reported great earnings - EPS beat , REV beat, REV growth beat, and Deliveries beat , vs. Analyst estimates.
Q3 outlook also looks good.
Technically looking at the weekly chart, NIO appears to be respecting the 50MA as support and decreasing volume implies a larger move imminent to push out of the "wedge" or flag formation. Given the fundamentals I'm long the 8/20 45c and 9/17 50c here. Assuming this is the Wyckoff Phase D : Back up and last point of support, I am expecting Phase E and a breakout next week.
Break of $41 invalidates idea and could suggest a move to $34
What is a Call option ?How Do Call Options Work? What Is a Call Option?
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Call options are financial contracts that give the option buyer the right, but not the obligation, to buy a stock, bond, commodity or other asset or instrument at a specified price within a specific time period. The stock, bond, or commodity is called the underlying asset. A call buyer profits when the underlying asset increases in price.
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How Do Call Options Work?
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Since call options are derivative instruments, their prices are derived from the price of an underlying security, such as a stock. For example, if a buyer purchases the call option of ABC at a strike price of $100 and with an expiration date of December 31, they will have the right to buy 100 shares of the company any time before or on December 31. The buyer can also sell the options contract to another option buyer at any time before the expiration date, at the prevailing market price of the contract. If the price of the underlying security remains relatively unchanged or declines, then the value of the option will decline as it nears its expiration date.
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Use Of Call Options
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Investors use call options for the following purposes:
🔵 Speculation
Call options allow their holders to potentially gain profits from a price rise in an underlying stock while paying only a fraction of the cost of buying actual stock shares. They are a leveraged investment that offers potentially unlimited profits and limited losses (the price paid for the option). Due to the high degree of leverage, call options are considered high-risk investments.
LYB. Must be this tall to ride this rideBelow the 200 par sars showing in the sky and macd fall below the signal is a clear sign that LYB is a little short.
The $95 puts for 8-20 are still nice and cheap. Looking for a price Target of $92. I’ll be buying 3 contracts selling 1 at $95. The next one at $92. And I’ll let the other one ride to $91 if the stock gods are amicable
MCO!!! let’s go MCO!!! let’s goAbove the 200 ma with parabolic sars o. The chart enjoying a macd cross above that signal line - gives us a tried and true setup for a move up to $390
The 8-20 $390 call is priced nicely I only plan on being in this a day or two at most - might even exit first day of the contract if it immediately goes my way
Oh Deere!!! Option stratBelow the 200ma left out in the cold parabolic sars start shining in the night sky like little pin points of the cosmos crying. The MACD fell below the signal - leaving the little Deere to suffer and ushering in a time of depression - a dark dark place but hey it’s GREAT FOR OUR WALLETS!!! oh yah liking the
8-13 $360 puts. Price Target $353-352
$EQIX. Sweet looking swingSitting drastically above the 200 moving average with parabolic sars making themselves patrons of the chart as well as that beautiful MACD woman (she’s even prettier when she’s cross). But the dollars on this chart it has the ability to move :0 I’m liking the 8-20. $850 call looking pretty
CARDANO-ADA/USD Bullish SwingVery simple idea based on ew an fibs. This move will take some time to complete so be patient. We also could stay around this level/range and correct for a "B & C" wave which I'm not sure at this time whether or not this correction has completed a,b, and c. Either way it will not negate this setup and i will be prepared to add more to my position in the event we take another trip back down to the bottom of the range @$1 dollar level
Visa Earnings Trade!!Sitting above the 200 Ma w a MACD cross and a parabolic Sar. I could see this continue to the upside. This week and last week companies have been getting massively rewarded for good earnings. American Express ran $10!! Visa is gonna smoke American Express too so I can only imagine. Risky trade but if my thesis is correct tomorrow after hours this thing should pump and we should have plenty the following day to close our contracts in a nice profit.
$522.50 call for august 6th. Grab em up early during market open 7-27 we’re gonna ride this one thru earnings and sell off 7-28