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$AMD IC 40% Profit and 77% PoP #amd #trading #optionsI'm waiting for this AMD corrention.... * Big red trending candle. * Reasonable safety S/R zones. * Long run and now correction. Why Iron Condor? Let the bulls/bears to choose direction, I would like to making money in any direction! Max profit: $286 Probability of 50%Profit: 77% Profit Target relative to my Buying Power: 40% Max loss with my risk management: ~$200 Req. Buy Power: $770 (max loss without management before expiry, no way to let this happen!) Tasty IVR: 94 (very high) Expiry: 49 days SETUP: IC for 1.43cr each, because IVR ultra high * Buy 2 AMD Jan21' 110 Put * Sell 2 AMD Jan21' 115 Put * Sell 2 AMD Jan21' 170 Call * Buy 2 AMD Jan21' 175 Call Stop/my risk management : Closing immediately if daily candle is closing out of the the box, max loss in my calculations in this case could be ~$200. Take profit strategy: 60% of max.profit in this case with auto buy order at 0.57db each. Of course I'll not wait until expiry in any case! If you liked this article, check my other ideas. Anyway: HIT THE LIKE BUTTON BELOW , and for fresh option ideas FOLLOW ME( @mrAnonymCrypto ) on tradingview !
NASDAQ:AMD
by TanukiTrade
Asset Classes - Part 3 - For beginnersToday we prepared for you 3rd part of our paper on asset classes for beginners. Purpose of this paper is to concisely detail futures contracts, forwards, swaps and options. Asset Classes - Part 1 and 2 - For beginners Feel welcome to read part 1 and part 2 if you have not yet. Derivative Derivative is a type of financial asset which derives its value from an underlying asset or group of assets, or benchmark. Underlying assets for derivative contracts can be, for example, stocks, commodities, currencies, bonds, etc. Derivatives are traded on a stock market exchange or over-the-counter (OTC). They can be used as investment vehicles, speculative vehicles and even as hedge against the risk. Additionally, derivatives often allow for use of leverage. Most common derivatives are futures contracts, options, forwards and swaps. Illustration 1.01 Illustration 1.01 shows the daily graph of gold in USD. Futures contracts Futures contract is a standardized derivative that is publicly traded on a stock market exchange. It binds two parties together which are obligated to exchange an asset at a predetermined future date and price (without regard to current value). Expiration date is used to differentiate between particular futures contracts. For example, there may be a corn futures contract with expiration in April and then another corn futures contract with expiration in May. On a day of expiry, also called delivery, the exchange of an asset between the two parties is enforced. Underlying assets for futures contracts can be stocks, commodities, indexes, etc. Forwards Forward contract is a derivative contract between two parties to buy or sell an asset at a specified price on a future date. Unlike futures contracts, forward contracts are not standardized. They are customizable and traded over-the-counter rather than at a stock market exchange. Illustration 1.02 Illustration above depicts the daily graph of continuous futures for gold. It is clearly visible that the gold chart in USD and gold continuous futures chart are resemblant. Swaps Swap is another form of derivative contract that binds two parties to exchange cash flows. There are currency swaps and interest rate swaps. Currency swap is defined as the exchange of an amount in one currency for the same amount in another currency. Interest rate swaps are defined by exchange of interest rate payments. Illustration 1.03 Picture above shows daily graph of S&P500 continuous futures. Options Option is a type of financial asset that gives a buyer the right to buy or sell an underlying asset at a predetermined price and date. Options differ from futures contracts in that they do not oblige parties to exchange an underlying asset. There are European-style options and American-style options. European-style options can be exercised only on a date of expiry while American-style options can be exercised at any time before this date. Options that give a buyer the right to buy an underlying asset are called call options. Contrary to that, the put options give a buyer the right to sell the underlying asset. Options are very complex as they involve option risk metrics, so called greeks. DISCLAIMER: This content serves solely educational purposes.
CME_MINI:NQ1!Education
by Tradersweekly
2
$DAL 16% Profit for 16 days? Not bad. #nakedput #daytradingDealta Airlines correction, playing out with naked put option. Reasons: - high reward for next monthly expiry (mangeable with rolling) -> collecting credit - breakeven point is far - RSI is oversold. Max profit: $92 Probability of 50%Profit: 78% Profit Target relative to my Buying Power: 16% Req. Buy Power: $558 (max loss without management before expiry, no way to let this happen!) Tasty IVR: 96 (very high) Expiry: 16 days SETUP: NAKED PUT for $DAL, because IVR is high, for 0.92cr * Sell 1 DAL DEC17'32 PUT Management : ROLLING if daily candle is closing below of BE. Take profit strategy: 50% of max.profit in this case with auto buy order at 0.46db Of course I'll not wait until expiry in any case! If you liked this article, check my other ideas. Anyway: HIT THE LIKE BUTTON BELOW , and for fresh option ideas FOLLOW ME( @mrAnonymCrypto ) on tradingview !
NYSE:DALLong
by TanukiTrade