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Options-strategy

SPY Calls with Risk ReductionI am more inclined to be bullish the SPY but I mitigated my risk by structuring it accordingly. Sell Calls 24 July - Strike 340, 1.14, Qty 3 Buy Calls 31 July - Stike 312, 11.50, Qty 1 This gets me a bearish risk of -$1612, Max Win of $3940. Worst case scenario is when price goes beyond 349 before my expiry. I bought different calendar dates to get a more favorable price. I am also happy for my sold contracts to expire early as there is a chance if the price is rising rapidly I can additional gains with my calls that expire later. Market Rises/Range Scenario ✔ - Cities start slowly reopen ✔ - Earnings has companies forecasting the worst of 2020. However investors seem optimistic/lukewarm ✔ - CN could report positive economic news that will encourage positive vibes ? - Europe could show positive recovery ✔ - US weekly unemployment numbers are slowing down ? - US second stimulus package (May) ✔ - Positive vaccination news ? - Lower income consumers are the most impacted, however that won’t dent investor that deem key stocks as “cheap” ✔ - US retail numbers are improving (18% in May) ✔ - Above tested 200 MA ✔ - No longer in RSI over bought Market Crash ? - Europe sinks into a clear recession ? - Breakdown of second stimulus package ✔ - CN hits a repeat lockdown or resurgence in virus ? - FED keeps pushes dire warnings of economy and this becomes an early warning ✔ - Credit card and mortgage defaults spiral (After Aug) ? - RSI goes further down ? - June Retail numbers drop due to riots
AMEX:SPYLong
by Ronin_trader
Hedge stock trades call in NCM/ Put on ASX ( ASX50 stocks) Using strategies from Street smarts - two opposite set ups to hedge out market risk on June Options Call on NCM - this is a modified ' momentum pinball ' set up anticipating a correction back up to middle of range only after ABC correction ; at money June calls 400 shares worth Put on ASX - this is a new high then correction > 20 days High failure; called' Turtle Soup plus one ; looking for typical correction based on previous negative drives and take profit above previous support ( old Highs); at money Puts 100 shares worth only ( as hedged leg of trade 1 above - not a perfect hedge as missing 30 shares so skewed delta Positive market slightly ).
N
by Aussie-scalper
IAG ( ASX ) : options Bull Put Spread strike 5.50 net credit Would I like to own IAG for a premium price? If I can pick it up for 5.50 that's historically a better than fair price in past months. However - that's only if the credit leg of options gets exercised in two weeks until expiry = plan B. Plan A _ book a net credit on Bull Put spread, with protection ( insurance) 1 strike below at 5.25 ( -0.25c) providing stock does not fall below 5.50 + put cost of 0.14 = 5.36 in next two weeks... Placed trade with 80 contracts = 8000 shares @ 5.50 strike for 0.14c = +$1120 credit Placed 80 contracts = @ 5.25 0.08 = - $ 640 debit net credit = + $480
ASX:IAG
by Aussie-scalper
Gold Potentially Retracing, Prepare to Buy LongTechnicals: -------------- $16.03 and $16.61 are approximately the short term support and resistance levels, forming a channel where the price is being pulled horizontally. This area also appears to be a price consolidation point around $16.38 following an April 20th high volume day. Fundamentals: ------------------ Gold is trending up. This momentum is due both to the medium term high VIX volatility and an overall pattern of prices rising after a market correction/downturn event. This correlation of gold to volatility and market correction follows a similar pattern from 2006 to 2011. Strategy: ----------- Longer term call options are ideal for the current market. Purchase 3-month long call options if IAU breaks through $16.60 or if it retraces to $16.03.
AMEX:IAULong
by ConfederateTrader
1
A easy way to earn money with Option (Covered Calls)A easy way to earn money with Option Requirement 1. You already have some Apple shares 2. You are willing to sell some of them at 330 3. You have an Option Trading Account Strategy: Sell Covered Calls ( the amount should be less or equal to your existing shares) Strike Price: 328-330 , the higher the strikie price the lower of the premium you will get Duration : One Month Results: 1. If Apple cant break 330 in the near future Every month you can repeat this strategy and collect Option Premium 2. If Apple break 330, you will realize profit at 330, and you still collect Premium, Warning: Do not sell naked calls (you dont have any aapl shares now) , coz your potential risk will be unlimited.
NASDAQ:AAPL
by tntsunrise
10
Trade Log NIFTY May 29First, I'll start with the review of my yesterdays post. Yesterday, I had posted my view and some important levels that I use on the chart. I had said 1) Trend is up on daily time frame. Weekly trend is up, provided we dont have huge down on Friday. I think NIFTY will gain / consolidate tomorrow. 2) Tomorrow strategy will be to see the consolidation rage. But I wont carry any near the money positions into next week. And I had marked levels on the chart, which I used in my trading decisions today.Both points were quite obvious. Good thing, market played out to the levels wells. This is no guarantee, sometimes market coincides with your point of view by chance. My trades today 1) I sold 9500 CALLs around first resistance and closed it at weak support level of the day. 2) Then when high of the day was tested multiple times, it was broken and I sold 9500 PUT which I squared off. 3) Since INDIA VIX is around 30, I attempted to take few overnight positions. I sold some 9900 CALL options. Lets see how it goes. Its risky. My observations of the day 1) NIFTY closed positive for the third day in a row. 0.95% for today and around 6.4% in 3 days. 2) NIFTY is now in kind of uncharted territory. Less price action in 9500 - 9900 has very less price history in last 2 months. 3) BANK NIFTY unperformed and did not make new high like nifty. 4) INDIA VIX increased little. 5) Advance Decline ratio 36 to 14. I dont have conclusions, as I have I would like to wait till Monday to have clear view. I'll also post detailed weekly review coming weekend. But from days action 1) BANK NIFTY is not leading the rise. So it may cause NIFTY;s momentum some consolidation and ranges. 2) Overall trend is up and typical bear market rallies are fast. 3) So far this rally has not give any gaps, so next week some surprise gaps can start occurring.
NSE:NIFTY
by Observe_Think_Act_Think
6
NIFTY weekly view May 26 - 29Before reading my point of view on the week of May 26 - 29, Lets review my monthly view posted on March 27 Monthly picture is unchanged. NIFTY is still in long term downtrend. The some much anticipated surprises like stimulus package, lockdown extension and release are no longer market driving items. Corona virus issue is progressing, but not at shocking pace so far. What I expect from June, is some recovery and attempt to go for the other end of the range that NIFTY has formed. The range is from 8800 to 9800. Volatility will keep decreasing and movement will be relatively slower compared to the month of April and May. Now lets review my last weeks review. I had said 1. NIFTY is likely to stay below 9450. 9000 is an important psychological level and in the support zone . I wont short NIFTY aggressively till it closes below 8800. 2. I do not expect NIFTY to end below 8500-8600 this month. 3. Intraday movement can be confusing in this zone. Trading light and exiting quickly is required. So far, Point 1 and 2 turned out to be as expected. Point 3 was more of a caution for aggressive positions. For this week, I have the following observations NIFTY took support from previous low 8800 and bounced. This low held for 4 days in a row. NIFTY did not show strong sentiment on either side. Volatility contracted continuously. Weekly candle is Hammer with less overlap. BANK NIFTY touched the previous bottom, which could be an important support area. Highest Open Interest at 9000. Then 10000 and then 8500. For next week, at least till expiry This is the last week, so price action can be rapid, especially global clues that can support and dictate the movement. I think we'll see a trending move in BANK NIFTY and NIFTY, which I believe on the side which we see on Tuesday. That means if Tuesday is Positive, then I;ll trade in that direction for the rest of the week. Overall, 8600 - 9400 may be the range. So some important points to remember for my daily trade plans I wont get overly bullish or bearish, but I will switch sides quickly based on Tuesday movement. I’ll assume 8700 - 9450 as my range levels for the week. But Avoid creating overnight Option selling positions, especially on the bearish side. I’ll trade with the chart and buy the breakouts and create ATM spreads.
NSE:NIFTYLong
by Observe_Think_Act_Think
1
Tiffany Puts - Upcoming reflection of the global situationI bought puts on Tiffany as I felt like the stock was buoyed by the news of the LVMH acquisition bid last year. It did not seem to be hugely affected by the Covid virus and the potential upcoming economic slowdown implications. With April's non-farm job numbers going to reflect rising unemployment numbers. Corporate and consumer debt also catching up. This perfect storm will be wrapped by the disappearance of China tourist spends on Luxury goods. I believe Tiffany's stock price will be pushed to better reflect the current and future situation and have bought 130 ITM puts at 11.62 that will expire on 15 May 2020. Implied Volume of +32% (Seems like a good price)
TShort
by Ronin_trader
6
Selling VXX call - Expiring 27 Jun 2020 Decided to sell covered VXX Calls as i'm pretty unsure about making Industry specific trades as it's very detached from the economy. But what I've learnt so far is that it is not a fact that the market needs to correlate with the economy. Trading volatility seems like a good idea, as an exercise I have tried to justify two market scenarios. Market Rises/Range Scenario - Cities start slowly reopen - Earnings has companies forecasting the worst of 2020. However investors seem optimistic/lukewarm - CN could report positive economic news that will encourage positive vibes - Europe could show positive recovery - US weekly unemployment numbers are slowing down - US second stimulus package (May) - Positive vaccination news - Lower income consumers are the most impacted. However, that won’t dent investors that deem key stocks as “cheap” Market Crash - Europe sinks into a clear recession - Breakdown of second stimulus package - CN hits a repeat lockdown or resurgence in virus - FED keeps pushes dire warnings of economy and this becomes an early warning - Credit card and mortgage defaults spiral (After Aug) Trade Risk: $4710 Trade Reward: $1290 (27%) Win Probability: 73.78%
AMEX:VXXShort
by Ronin_trader
4
Trade Log NIFTY May 20My trades Today 1. I sold 8900 PUT today as market opened with positive bias. When It faced rejection at 9000, I squared off the position. I was profited because IV dropped. 2. Then there was a consolidation in tight range. Since there was no follow through on short side after rejection, I was confident of selling credit spread. I'll let it expire/ close tomorrow. 3. Then on breakout of the range, I bought CALL and squared it off near EOD. In my Trade log post for May 19, I had said 1. Global news not helping, NIFTY is showing strength, but BANK NIFTY bearish . On BANK NIFTY chart, 17150 - 16700 is a support zone . This will be second touch of the zone, hence it can build support here. That means 8800 can be touched again, or even breached. 2. I don't expect NIFTY to go below 8600. 3. Also, I don't think 8800 is a bottom, on next touch, it may not hold, at least breached once. In this, point 2 is certainly confirmed. For point 3 I think there are chances that 8800 may be bottom for near term and pullback rally starts from here. Observations about price action today 1.NIFTY gained in the first few hours. It maintained the gains and consolidated in tight range. And then gained even more in second session. Closed 2.11% up. 2.BANK NIFTY supported 2.11% 3.VIX down 9%+ 4.Advance Decline ratio 42 to 8. 5. NIFTY formed higher low and higher high. BANK NIFTY did not form new low. For next 2 days, 1. I think, some kind of sustainable pullback may have started. It needs confirmation by holding up tomorrow. 2. Another confirmation signal is BANK NIFTY makes higher high. For confirmation of bottom, I would wait till Friday EOD. 3. Obviously, this pullback does not change long term picture right now. But now intra-day bias is clearly shifted to bullish side. 4. VIX dropping dramatically at 8800 support level, means NIFTY may make 8800 as base for this pullback rally.
NSE:NIFTYLong
by Observe_Think_Act_Think
1
Bullish on daily, as long as $62.75 holds. Fib levels shownBullish on daily TF, as long as $62.75 holds. Fib levels shown below. Weekly - Possible cup forming and bull flag, but there is bearish RSI devergence. Options - On Friday, April 17, 2020 , 3,850 contracts were bought of the $72.50 call expiring on Friday, May 15, 2020, which are still in OI. 8.5% Move expected. May 8 P/C ratio .42, May 15 P/C ratio .25. Q1 Earnings – They have beat Q1 EPS and Revenue expectations since 2014. Good Luck this week!
NASDAQ:ATVILong
by hockeysniper
UKOIL: Downtrend Bid + Retracement LongFirst off, please don't take anything I say seriously, as always this is on opinion basis. That being said, let me get into a few key points I want to make. Oil is about to go back down on the demand curve and have increased resistance, especially in indexes and/or options trading. This is mostly due to price corrections and a result of the sentiment going on from people reacting to the Covid19 pandemic. The demand curve going down = oil going down = price corrections as a result of impacted news. It is that simple, and this is why I predict a small imminent bearish period for UKOIL, but a huge upswing investment opportunity.
TVC:UKOILShort
by gamer456148
WOW! CHECK OUT MY CUSTOM CODED ALERTS!CHECK OUT MY ALERT SYSTEM! THESE ALERTS ARE PRETTY SPOT ON. READ MY NOTES ON THE SCREEN. I'VE BEEN TRADING OFF AND ON FOR ABOUT 12 YEARS. IT HAS ONLY BEEN IN THE LAST FEW MONTHS AFTER LOSING MY JOB THAT I DECIDED TO GO ALL IN ON STOCKS. I'VE DEVELOPED THIS ALERT SYSTEM IN THE LAST MONTH OR SO AND IT HAS HELPED ME TREMENDOUSLY. I'VE BEEN TRADING OPTIONS MOSTLY SINCE IT HAS BECOME MY FULL-TIME JOB AND THESE ALERTS HAVE BEEN CRUCIAL TO MY SUCCESS SINCE MID-FEBRUARY
NYSE:KOLong
by abow1007