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BataIndia from 14 August 2020The stock has been moving down for the entire june july n august month expecting it to start moving upwards again at 1230 price level a big spike in volume seen ==> personally indicating a investor started buying it. MFI has touched bottom zone waiting for a breakout in it ==( line has been drawn ) for upside movement trading strategy : Calendar Spread: remember it is all option together --> try to adjust premium for good result AUG : SELL 1120 PE BUY 1080 PE SEP: BUY 1400 CE SELL 1500 CE this is giving good return with low risk make sure breakeven is around 1110 on the downside ADJUSTMENT : if stock starts moving further downside ... start adding PE in september month and position of call option on lower strike price ...
NSE:BATAINDIALong
by Trade_with_yash
$BA Massive Breakout | Strap In For Easy LootOPTIONS PLAY OF THE MONTH | Technical Analysis Of BA BA Supporting my page with likes & donations is greatly appreciated and will be used to help promote my ideas to more people like you! The Playyy: - BA $180Call 8/28 @ $670 we should see this get pretty damn deep in the money if we breakout successfully. Watch this breakout very closely, we've been watching this wedge for nearly 3 months. Seriously we have been waiting for 3 months patiently inside the Easy Loot channel, waiting for this bag. None of this is financial advice, just giving you a look inside my plays. Massive Bullish Wedge: Possible Inverse Head & Shoulders Coming Out Of Earnings: May Easy Loot be with you.... DotcomJack
NYSE:BALong
by DotcomJack
JETS ETF Call Options With Bears ProtectionJETS invests in both U.S. and non-U.S. companies involved with the airline industry, including passenger airlines, aircraft manufacturers, airports and terminal services companies. Due to COVID-19 it's one of the weakest sectors and from my observations it seems to fall first and raise last vs the S&P 500. As countries are slowly opening and getting a grip on the virus or at least are forced to push forward to avoid further economic impact, JETS ETF could potentially move up. I am around 70% inclined to this, especially since price seems to have breakthrough a range of 15.79 - 11.28 To protect myself from bearish moves. I loaded up on call contracts at a higher strike. This means that no matter how low price goes I will always get +$875. However my profits are capped at strike 20.99 with my risk being price moving upwards beyond strike 21.45. The plan of course would be to close the trade before. Sell Calls 31 July - Strike 21, 0.3, Qty 45 Buy Calls 31 July - Strike 18, 0.95, Qty 5
AMEX:JETSLong
by Ronin_trader
ADT OPTIONS | How To Play The Gap UpSimple Technical Analysis On ADT, Plus This Weeks Options Plays. With both of these plays, it will be up to you to secure profit. Do not trade this though, you will lose money :) Long ($16 Breakout): Premiums will be extremely expensive on the call side, important that we wait for confirmation or else we will get clapped quick from a rip down The Call: $12.5 Call 8/21 @ $330 avg Short ($13.26 Level): Premiums on the put side are extremely cheap for mainly one reason, the gap up. If played correctly, times like this can provide an amazing day trade opportunity. The Short: $7.5 Put 9/18 @ $12 Strictly educational purposes only DotcomJack
NYSE:ADTLong
by DotcomJack
What Is Options Assignment Risk?What is the options assignment risk? Trading options is a very lucrative way to make money in the stock market. Using the same methods that I teach in my trading PowerX Trading Strategy, I was able to turn a 25k account into a 45k account in 2 months! 25K to 45K in 2 months? This sounds too good to be true… and I would like to tell you that it is NOT too good to be true, but there are some inherent risks associated with options trading. ONE of the biggest risks, and possibly the MOST common risk associated with trading options are options assignment risks. As you may know by now, options contracts expire. When you purchase an options contract you have the right to exercise the contract, and buy or sell the underlying asset for the agreed-upon price. If you allow the contract to expire in the money (ITM) you run the risk of being assigned the 100 shares of the underlying stock. This is known as an options assignment risk. Specific Examples of Options With Different Expiration Dates In the example we’re going to discuss today, we’re going to look at how options expiration or the length of time to expiration can affect your options assignment risk. To illustrate the relationship between options assignment risk and options expiration, we’re going to look at trading a 315 call options contract on Apple (AAPL) with 7 days left until expiration. The current strike price of AAPL is 318. This options contract is currently trading for $6 , but only has $3 of intrinsic value. If you were to exercise the option, you would be able to purchase the AAPL stock for $315, and you would capture $3 of profit. If you sell the option, you’ll earn twice that, because the options contract is selling for $6. The difference in the cost of the intrinsic value ($3) of the option and actual value ($6) of the option has to do with time decay. As the option contract gets closer to its expiration date, time decay erodes the value of the options contract. In our next example, we’ll look at trading the same options contract with a $315 strike price, but with 0 days to expiration. As you can see in this image, the same contract with zero days until expiration has only $3 of value. Time decay, otherwise known as theta, has slowly eaten away the value of the contract so that now there is only the intrinsic value of the option left. On a side note: Selling Theta is a very powerful way to make money while trading. I have taught thousands of traders to use Theta, or the time decay of options, to produce income while trading options. Options Expiration As an options contract nears expiration, the risk of options assignment increases exponentially. When an options contract has been purchased, it can usually be sold before expiration to prevent an assignment. However, options contracts that have been sold pose the opposite risk. If you have sold a put contract for example, and the options contract is in the money at expiration, you must either buy back the contract BEFORE expiration, or risk options assignment. In this next example, we will look at selling a put contract on Herts (HTZ) . The current price strike price of HTZ is $2.87. If you were to SELL a $3 put option on HTZ , the option would have the intrinsic value of .13 cents! Meaning if you chose to exercise the option, you would only make .13 cents per share. If we look at this option with 1 week out until expiration we can see that it has more value because time decay has not eroded the value. To Exercise or to Sell, That Is The Question As you can see, there’s WAY more profit when selling a contract vs exercising a contract when there is time to expiration. In summary, it’s very unlikely that someone will exercise an options contract when there is time remaining before expiration. There is usually more profitability when there is less time decay or Theta decay in the contract. When should you worry about options assignment risk? Some traders are under the impression that IF the stock price moves below or above your strike price (depending on whether you sold a put or call) you risk assignment immediately. This is NOT true. You risk assignment the closer your contract gets to expiration.
DJ:DJIEducation
by rockwelltrading
1
Earnings Play for TGTI grabbed in the money options before the breakout. weekly close above 123 confirms move. Target $132. In the money options help against theta decay but cost more up front. This is an earnings play. options that expire August 21 or 28 have lowest theta. Risk/Reward is 3.00 stop loss is low 119's. So long as weekly close is above 123, the 119 stop loss is reasonable. if this falls back into the wedge you can add another call around 116 and set a different stop loss, but the safer play is playing the breakout with confirmation. there were 2 hourly candles that close above the resistance along with strong bull volume on the last 2 hour candle.
NYSE:TGTLong
by UncleBeeB
Bajaj Finserv from 17 July 2020The stock is showing bullish sign in 4h Timeframe ... positional long can be taken. There is consolidation zone present right above the 6403 level ..which might result in some high wick candles MFI is showing sign of increasing .. though RSI and MACD in -ve zone --> consolidation zone very problematical Targets --> 6664 -> 6905 (tough) Trade setup : Safe Setup : ( Sell 5700 PE + Sell 5600 PE ) + ( BUY 4800 PE * 2 ) to decrease margin total profit : 10K margin 160K Nerves of Steel Setup : 1. Sell 5700 PE + Sell 5600 PE 2. Buy 6300 CE use appropriate hedging to decrease margin :: assumption taking 4800 PE *2 and 7200 CE total profit : 90K margin: 180K very risky : 48% success probability
NSE:BAJAJFINSVLong
by Trade_with_yash
Bull Put spread on spike in volatility - The Anty strategy I think with the slightly over-cooked sell-off into an area with high volume trading activity should be price stabilize. This is a strong company with good projected income potential over the next few years. If I was forced to buy it via exercised then I could live with that. In the meantime - I can pick up a credit at close to 'at-the money' and see what happens....it just has to expire in 3 weeks above 18.00 before I'd need to consider 'rolling down & out ' etc The volatility spiked up about 7 % which means the options premiums will be slightly fatter, and there is only 15 trading days left before expires for time-decay to work it away... This is "the Anty" strategy - adopted a bit longer for options
ASX:A2M
by Aussie-scalper
$GOOGL Options play of the month | New ATH!Technical look on $GOOGL with a huge potential options play through earnings Throughout Covid, Netflix has performed rather well since the first wave down, pushing 46% from lows. We are looking for Google to either retest previous ATH or straight rip, will probably play it safe and wait for the retest. If the setup doesn't look good enough for entry, we will simply sit on our hands and wait for the right time. The Play: GOOGL $1,600 Call 7/17 Estimated Time: 7-13 Days - Bullish - Breakout on the upside to make even more ATHs, looking to retest the previous channel resistance. This play will payout stupid but takes quite a bit of capital, congrats if you made a bag on this :) This is not financial advice nor am I a financial advisor DotcomJack (View other option plays below)
NASDAQ:GOOGL
by DotcomJack
BSL Bull Put spread - Aug expires with strikes 10.76/ 10.51 technical reasons - there seems to be a recover in price by rallying past previous low, and after completing corrective legs fundamental - Goldman Sachs have a BUY rating with target of $14.95 over 12 months ( +37%) good probability of this credit spread- with 5 weeks until expiry there is 'time-decay' on side - the implied volatility is high for the past 30 days in upper range 42-47% - European style option cannot be exercised before expiry date - plenty of time to manage on table risk eg. 27/02 payoff diagram shows only -$250 if price down to 10.81, with reward of $1000 this is a good Risk reward if exit in two weeks - Price merely has to stay above the upper sold strike of 10.76 to win - if price rallies a lot can exit the trade for a substantial profit early - if price drops a lot, at a few weeks before expiry can roll down and out to recover loss next month - if decide to own the stock, its better to wait until after dividend payment in September as no tax imputations allowable and best not to have an options trade on during this time.....
ASX:XMJ
by Aussie-scalper
set up BUY if 3.00 good price rating 5.50 GS plus Sept dividend OSH - seems to be well placed for accumulation; I'm just looking for a better entry price...the energy sector chart indicates some scope for further C leg downside correction. So waiting for OSH to test recent low. I figure the following entry technique: 1. in about 1-2 weeks if corrects lower to about 3.00 sell a bull credit/put spread Aug ( I'm looking at 3000 shares worth for about $1100 credit). 2. collect credit premium until Aug 20th expiry- this should get another +10c premium for a discount on buying stock 3. buy actual stock after expires then immediately sell a call above at target price of +50c ; if expires worthless, keep rolling out months until call exercised. 4. possible to collect Sept interim dividend if offered of about 7 c. Goldman Sachs have a 12 month rating ( from March) of 5.50 target ( information from Commsec).
OLong
by Aussie-scalper
NFLX Pre-Move Analysis |Technical look on $NFLX NASDAQ:NFLX with potential options play Netflix makes $100 million commitment to support Black communities in the U.S. As we come toward the end of this massive 10 month wedge, we must be patient. Throughout Covid, Netflix has performed rather well since the first wave, achieving 20% above previous 2020 highs. Will Netflix moon into earnings? Will earnings disappoint long investors? Comment your thoughts below! The Plays: Estimated Time: 7-11 weeks - Bullish - Breakout on the upside or other bullish activity: NFLX $540 Call expiring late september, this break will result in a massive rip in which we will aim to play the continuation. Take profits! - Bearish - Break toward downside, lose of channel: NFLX $460 Put Expiring late September or October. Chart is giving off more bearish signals than bullish but that's not pricing in Covid. We will cover this play when the time is right, be sure to keep your eye on it. This is not financial advice nor am I a financial advisor DotcomJack
NASDAQ:NFLX
by DotcomJack
4