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$WORK | WEEKLY OPTION UPDATEGood Afternoon Traders, Today we will cover a few plays I'm in or looking at. This morning we saw some massive movement all across the market. ACB up another 55%, USOIL ripping, yet we still have a fair share of companies crashing. WORK - DAILY PLAY WORK $28 PUT 5/22 @ 25 (Grabbed before the continuation) The Next Play We will look to grab some WORK calls expiring in 3-4 weeks which will give us a bit of wiggle room. Something I may be looking to grab once we bottom out would be a WORK 31.5 Call. Right now they are priced at $178 per contract, once we come down some more they should be quite a bit cheaper (They are already down 30% today). If you have any questions at all please feel free to direct message me. Talk Soon DotcomJack Do Not Trade This, You Will Lose Money
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by DotcomJack
4
QQQ - (Short Premium) Short straddle to profit from high IV $$$In this video I cover a short straddle trade in QQQ that has a slight bullish bias to profit from both a price pop as well as the high implied volatility in this underlying. **Current Market Structure** -Medium/Long term bullish trend -Price is reaching some key support areas at 175, 171, 170 -Bearish weekly candle may see prices push lower but I expect buying pressure to quickly enter back into the market **Trading Tips** -Right now is a good opportunity to be selling premium as the implied volatility has spiked from the recent selloff -IVR is much higher in QQQ than in SPY or DIA due to the tech heavy nature of the Nasdaq and the fact that much of the selling has been in tech -I could see price dropping down to key supports but I expect strong buying to enter back in, so I selling premium with a bullish bias -Breakevens are in good areas with the lower BE just below key support and the upper breakeven giving plenty of overhead room in case price starts running up quickly **Trade Ideas** -I sold 178 strike straddles w/ 53 DTE for $9.50 per contract($950 total profit) -I am selling premium with a bullish bias to not only profit from the high IV but also to profit from a bullish directional move. -My defensive strategy, in case either my put or call is breached, will be to roll the untested side and create an inverted strangle. If the price is tested on the put side I would likely sell new 16-30 delta naked puts to further profit from high IV and get more directional for a price pop.
NASDAQ:QQQ
by krugman87
TSLA - (Short Premium) Call premium is rich right nowThere is call skew in TSLA right now which makes call selling more profitable than put selling. I am going to take advantage of the high IV and the call skew by selling premium on the call side. In addition there are 2 long tailed bearish candles, one of them being a bearish pinbar, which could signal weakness in the short term. Keep in mind these bearish candles come off of a very large bullish candlestick so I don't expect this to be a reversal, but I do believe we could see a small pullback to the 320 area. If that occurs we may also sell naked puts at that point to turn the trade into a strangle.
NASDAQ:TSLA
by krugman87
2
FB - Selling premium in high IV environmentThe day after earning I sold 160 strike naked puts for $2.74 credit each. These options have a 30 delta at the time. This is a neutral to bullish strategy. The idea behind this trade is a contrarian play into high implied volatility. The idea being that after such a massive selloff the bears will exhaust soon and we will see a pop in price and volatility will come out of these contracts when that happens. My defensive strategy will be if FB continues to fall and breaches the break even of my short puts I will then convert this trade into a short straddle, selling the 160 calls, which will neutralize the deltas (reduce directional risk), and will also collect premium to further extend my break even and reduce cost-basis.
NASDAQ:META
by krugman87
GLD - Selling put options from key support levelsIn this video I discuss key support levels where selling short options for both premium as well as direction(if price bounces higher off of key support) can provide a highly probably and profitable trade setup. There is far more to options that I can fit in a 10 minute video but if you are unfamiliar with them I encourage you to research options. They can add variety to your trading portfolio, increase profitability, and reduce draw downs.
AMEX:GLDLong
by krugman87
TRADE IDEA OF THE WEEK IN CH ROBINSON (CHRW)Now this week's new Trade Idea of The Week is in CH ROBINSON (CHRW). We decided to enter a bullish position in one of our watchlist stocks, CH ROBINSON. We entered this trade on the long side at $92.94 and we have already made some gains today. This is a great setup that we loved to play called a squeeze. This is where the price consolidates and then starts to move with momentum out of the consolidation. This type of setup can produce some of the best explosive moves. Here is a list of reasons why we like this trade: The overall market is looking strong in the short term The transportation sector is looking great right now (you can see this sector's chart on our Sector Watch) The price is moving higher out of a squeeze The price has moved above the 21 period moving average with momentum We are hoping that all of these reasons provide a profitable setup for us to swing trade the next coming days!
NASDAQ:CHRWLong
by StrengthTrading
1
We entered a trade today in PX!Another trade we entered today was in PRAXAIR (PX). Heres why we like this bullish position for a nice swing trade: 1) OVERALL MARKET STRENGTH - The overall market looks phenomenal after a strong move the last couple of days and looks to move to new highs. 2) SECTOR STRENGTH - The industrials sector itself is looking phenomenal after today's move. You can see the great setup in the Industrial Sector ETF XLI. 3) Breaking out of consolidation - This stock has consolidated for for a little while and now looks ready to move higher. There is a squeeze on the 1 hr chart which is one of my favorite setups to trade. We will see what this trade bring in the coming days! SPY. DIA. QQQ. IWM. AMEX:SPY AMEX:DIA NASDAQ:QQQ AMEX:IWM
NYSE:PXLong
by StrengthTrading
The Utes looking like they might be ready to go!After the long down move the utilities sector has gone through, it looks like it could be ready to turn around. We might be a little early here but this is what we're seeing that is telling us that it's ready to make a move higher finally: -When you look at the 4 hour chart you can see that the price is coming out of a squeeze higher to the upside -When looking at the RSI which is an indicator that we like to use, you can see that there is a major bullish divergence -There has been an increase in volume the last couple of days, which bodes well for a reversal Again, we might be a little early here but if you're able to be patient with a trade in utilities we see this thing turning around and moving higher in the near future! We will see what happens in the next couple of days!
AMEX:XLULong
by StrengthTrading
1
Trade Idea of The Week In COT!First off, please note that I am a swing trader. When I enter a position I am looking to hold anywhere from 1 day to 3 months depending on the momentum, but the average is around 7 market days for my hold time. Here are some quick bullet points on why I like this stock for this week: -This sector (food and beverage) as a whole looks coiled and ready to go -The weekly chart on COT is also looking strong in an upward trend and it is pulled back to the moving average. -The price is beginning to move higher out of a squeeze which can make for some explosive moves higher We believe in trading with the overall trend and the sector strength at our backs. This stock is a perfect example of a high probability setup that we are looking for! Lets see what happens this week!
CLong
by StrengthTrading
11
Swing Trade Idea in PHM!We really like to keep our charts simple and momentum in price action is the most important thing to us. One of my favorite setups is a squeeze because it allows me to get into a stock or option before the large move has been made. This is obviously really nice when you trade with options because of the greeks and implied volatility starts working for you. Here is some brief bullet points on why we like this setup: - This stock has consolidated back to the 21 day moving average after a very bullish move. - The price is in a squeeze and is starting to fire out of that squeeze to the upside - There was good volume on the move higher today My strategy is based on swing trading stocks and options. My hold time averages around 8 days, but can go as long as 3 months depending on momentum and price action. Please make sure to have an exit strategy in place at all times no matter how good a setup looks...anything can happen!
NYSE:PHMLong
by StrengthTrading
IBM's well oiled wheel could be about to drop off. Just read this article on www.marketwatch.com "IBM • Sector: technology • Market value: $160 billion • 2014 return: -13% While most large caps have risen from October’s slide, IBM has been left behind. That means a great buying opportunity for long-term investors. IBM is one of those mega-cap tech stocks that have a place in almost every portfolio. For starters, there’s the 2.7% dividend yield and a history of payouts since 1916. There’s also the stability that comes with a company that does roughly $100 billion in annual sales and sports over $14 billion in cash and investments on its balance sheet." Source full article : www.marketwatch.com One could dig real deep and find all sorts of justifiable reasons why such reputable company should continue it's upward price trajectory in to indefinite future. However, from the price history on this chart, I suspect that we have just completed a 5 wave cycle that could be also a larger 5 wave cycle that began from bottom of 1929-1932 Wall Street crash. See the chart of Dow as surrogate for the sector. Even ignoring the price history before 1980, having completed 5 wave cycle, EW guidelines suggest price correcting to wave 4 low of one cycle degree lower. That suggest a ball park figure in the region of $70-50 area. Is it the right time to buy this stock or many others like it. I think not. Rather wait for few more year and pick it up at bargain basement price may be $50 or lower. Or better still consider long term far out of the money PUT Options and sit back. As always do you own analysis. Select to follow me and the chart for any future updates or new charts. Share it freely with others you feel might benefit from this chart. If you have specific alternative view and chart to share please feel fee to do so.
NYSE:IBMShort
by DanV