MARA trade ideas
MARA $43 this week. ATH late AprilMARA has been trending upwards beautifully in this upward channel with multiple bounces off the top and bottom as well as the median of the channel.
The top line of the triangle converges perfectly with the median of the channel as well as a key resistance level at $43.30 on April 6th. From there I expect to consolidate a bit within the channel and triangle until we break out of the triangle in mid-late April for ath.
Thus is a conservative estimate. MARA may break out of the triangle this week, and if so, we can see ATH very very soon.
When To Take Profits on Options I’m Markus Heitkoetter and I’ve been an active trader for over 20 years.
I often see people who start trading and expect their accounts to explode, based on promises and hype they see in ads and e-mails.
They start trading and realize it doesn’t work this way.
The purpose of these articles is to show you the trading strategies and tools that I personally use to trade my own account so that you can grow your own account systematically.
Real money…real trades.
Options trading is really fascinating, and it’s a great way to make money, and I think it is very important to know when to take profits, especially if you like trading The Wheel as I do.
So the question is, when should you take profits when trading options?
How exactly do you figure this out, is there a formula for it?
In this article, I’ll share some guidelines for how and when you should take profits on an option trade.
We will answer the question of whether you should let options expire or take profits early.
I will show you some very specific examples of two trades that I have going on right now (at the time of this writing on March 17th, 2021).
One of them, I took profits today, and the other one I’m still holding on and I will show you exactly why.
]How To Calculate Profits On Options
Firstly, let’s talk about how to calculate profits on options. In order to address this, there are two types of options traders.
One type of options trader are ones that are buying options, and the other, which I feel is very lucrative, and this is what I’ve been doing for a long time, is selling options and collecting premium.
I want to actually talk about selling options and receiving premium, because this is, as I said, what I’ve been focusing on recently with trading The Wheel Strategy.
My year-to-date profits on this account so far are more than $54,000 selling premium on options, and I’ll show you exactly how to do this.
So when selling options, you’re receiving premium, and for me, the most important metric here is the so-called premium per day or PPD.
MARA Example
The first example that I want to give you is my position with MARA. Looking over my transactions with MARA over the last 30 days.
I sold puts at a strike price of 20, and for this, I received $0.28 in premium per option that I sold. Now options come in 100 packs, so this means that per option I made $28.
Now, in this specific example, I sold 50 options total, so this means that I’m receiving a premium of $1,400. I put this trade on March 10th, and these options expired on 3/19.
This is $1,400 in premium in 9 days. This comes to $155.55 in premium per day, or PPD.
Now this includes weekends.
My rule is I’m buying back the option when I can get 90% of the maximum profits, but there’s an exception to this rule.
First, let me tell you what that means.
So again, I sold each contract for $28, for $0.28. The idea is to buy back the option at $0.03, and this is exactly what I did today (March 17th).
So we have another two days to expiration.
So today, I bought back a total of 50 contracts at $0.03, and by doing so I made $0.25 in profits on MARA.
Now, this is where again, we’re looking at 50 contracts, times $25, so this is $1,250. I was in this position for 7 days.
So $1,250, divided by 7 days, means that I made $178.57 a day.
Let’s just round to $179 per day. As you can see, $179 is more than the $155.55 that I planned per day.
Now let’s think about it. If I would keep MARA right now, if I would keep this option until expiration, but what would happen?
I would make an additional $150 in three days. This means that now my premium per day is only $50 per day.
This doesn’t make sense to me because this here is actually bad, because my plan was to make $156 per day, and I was able to make $179 per day by buying the options back.
If I would hold on to this trade and let it expires worthless. So this is where here, and let it expire worthless, right?
This is what would happen. I would make an additional $150 in three days and the premium per day would only be $50. That does not make sense to me at all.
This is why here in MARA, it made sense to buy back the put option because by doing so, it frees up buying power meaning that now I can sell more puts.
So the idea here is that I’m selling more puts and making more money on the new puts than I would make holding on to MARA.
DKS Example
Let’s go over another example with a position I have right now with DKS .
I sold the 66 strike on March 10th. I sold 15 of them and I received $75 in premium. 15 contracts times $75 comes to $1,125.
So let’s do the math right now and see if it makes sense to close this trade today (March 17th) or if we should keep it, and we’re using very similar logic here.
So we sold the 66 put expiring March 19th, and we received $75 per contract for it, $1,125 total.
We then divide this by 9 days to get to our premium per day, which is $125.
So right now, on March 17th, let’s see how much DKS is still worth.
Right now, the bid/ask for DKS is $0. 05 over $0.10, and that’s really interesting because I want to buy it back at $0.07.
Let’s say right now, if I would place an order right now, I could buy it back at $0.10. Should I do it?
If I did this, I would make $75, minus $0.10 ($10 per contract), which is $65 per contract. For all 15 contracts, I would make $975.
We find our PPD by dividing $975 by 7 days, which comes to $139. So if I really wanted to, and if I needed to free up some buying power, I could do this.
But let’s see what happens if we hold this for a few more days. So if we hold DKS until expiration, we can make an additional $150.
It might actually make sense to close it out because $150 over the next three days does not make a lot of sense.
When I looked at the option earlier, DKS suddenly jumped from 78 to almost 79.
This is a 10% jump in 30 to 45 minutes.
When we opened this morning, first, we went down, and then we went a little bit up, and then we were hovering right around where we opened.
Earlier this morning, the DKS put was trading at $0.25.
So the question is earlier this morning, would it have made sense to close it? Earlier today on March 17th, I could have bought it back for $0.25.
So that wouldn’t have made sense, right? Because then if I’m buying it back for $0.25, I would only make $0.50.
So this here, $0.50, this is then $750 in seven days, and if we divide $750 by 7 days, this is $107 premium per day.
As you can see, the $107 premium per day is less than what I expected. If I would hold DKS to expiration, we can make an additional $0.25, $25 times 15 contracts is $375.
Now, if you take the $375 in 3 days, that would be $125 premium per day.
So when I’m getting $125 premium per day, this is when it does not make sense to sell it just yet.
Should You Take Profits Early?
So this is the important thing because the question always is, do you take profits early, or hold until expiration? Well here’s my formula for this.
So I want to give you a very specific formula that you can use if you want to.
If the current realized premium is a premium per day, PPD, is larger than the planned PPD, this means close it out early.
If the remaining premium per day is smaller than the planned premium per day, close it.
Only if the current realized premium per day is smaller than the planned premium per day, in this case, hold it.
If the remaining premium per day is larger than the planned PPD in this case, you want to hold it.
Summary
This is why today I wanted to show you my formula for when to take profits on options, especially when you are an options seller.
You see, selling options and receiving premium is what we do with The Wheel Strategy, and the most important metric here is the premium per day (PPD).
This where using the PPD, you can actually get down to a formula of when exactly you should buy or sell.
This is where it’s just a good rule of thumb if you don’t want to do all these calculations.
So the rule of thumb is I close a trade when I can realize 90% of the maximum profits.
Long on MaraLooks like a good bounce off the channel support line, so any reversal back below this support will cancel my active trade
Not financial advise, just my own ideas
MARA BROKE CRITICAL LEVELMARA broke and retested the resistance level for an intra-month rising wedge which is a bearish signal. Unless we see Bitcoin bounce at these levels (which is unlikely) MARA can easily head down to $35, a previously strong level. At that point we can expect to see a bounce with buyers taking control again. Long term I can see both MARA and RIOT breaking $100 this year but short term things are a little more choppy.
MARA Marathon Digital Holdings $70 option callsInvestors in Marathon Digital Holdings, Inc. MARA need to pay close attention to the stock based on moves in the options market lately. That is because the Apr 16, 2021 $70.00 Call had some of the highest implied volatility of all equity options today. (zacks.com)
The indicators are still looking bullish on the daily, despite today`s correction.
So is MARA a still a buy???
Market Cap 3.879B
I am looking forward for your opinion to make a decision myself.
If you missed my comparison to EBON:
If you missed my hashrate comparison with DMG blockchain:
If you are also interested to test some amazing BUY and SELL INDICATORS that i use, which give the signal at the beginning of the candle, not at the end of it, just leave me a message.
MARA A Smile to 54.00 as 36.50 retest/supportNot financial advice.
MARA is knocking out a new resistance level weekly.
Keep buying the dips.
Long term hold.
Refer to previous chart in notes.
Just in case we have daily close below 43.00
Then the test my gangsta chart still be in play.
Look for 38.50 as new support to hold.
32.00 was previous support to hold and it seemed it did.
Bitcoin is basically trading in a sideways pattern.
So that may cause Mara and the other crypto related stocks to go down this week or maybe gain ground
Against bitcoin.
Still 54.00 seems reasonable as long it stay above 43.00 but smiley face can form around 36.50-38.50 range.
May start that pattern once it retests 50.00 or even 54.00.
Fyi. Those lines in the chart starts at 125.00 range so that means we are slowly creating news areas of support.
Was 26.00 then 32.00 now 36.50
So long term is still right on track for 350
<TradeVSA> MARA - Pullback Completed with No Supply SignalSign of Strength in the chart:
1. Mark-up stage with Pullback
2. Double NS signal at support
Hit the "LIKE" button to support us :)
Disclaimer
This information only serves as reference information and does not constitute a buy or sell call. Conduct your own research and assessment before deciding to buy or sell any stock
MARA interesting price actionLooking at the technicals here. MARA is having a nice consolidation period with low volume and sellers drying up, with the overall market downtrend condition right now with high bond yields. MARA has very impressive price action and is one of the only which still holds its place and not in a downtrend dive. A possible entry for me with nice volume confirmation would be at the breakout of the black and red lines for an all time high play. Seeing here also a double bottom which is a nice addition for confirmation with crpyto making higher highs during this period of time. But with the overall market condition its still somehow of a neutral, unless it outperforms the market.
MARA crypto miningnot sure if low is in yet similar to bitcoin. think this could be $100 + move in the larger degree
not financial advice
Mara head and shoulders Would appreciate some input. Dotted orange line is my neckline, but I don’t know what it is really. Next phase is riding the train down, and looking for a heavy red volume confirmation for the downtrend. This head is smaller than the shoulders and the neckline is tilted downwards, so it is truely a rare sight. The shapes line up, the prerequisites line up too and the decrease of volume of A to C and then E definitely confirm the warning of the pattern. I think the idea of a credit spread is a safe one, as mara’s movement is volatile and carries a healthy amount of risk
what's up with MARA and RIOT?The recent selling (this morning) of BIT is troublesome, few big wheals are selling at ATH and by the dip, again and again. therefore, logically speaking one can assume they will do it again.
In one of my older post in RIOT, I mentioned that I've observed that BIT miner stocks are losing steam when BIT hit ATH. One of my suggestion was that as the asking price for RIOT and MARA are now very expensive, people are moving to cheaper miner stocks.
Subsequently, all miners (RIOT,MARA, CNET, Sos, XNET, EBON, 9CITY, CANAN etc) have moved to "ATH", but followed by a rapid and substantial crash as we are so familiar with by now. This is was when Mara and RIOT drop to 17 (when BIT was at 42K), the most recent one was 28 for Mara.
Right now, I am waiting for BIT to get to 65k (not even 80K), as well as RIOT and MARA earnings. However, once again the same scenario could be repeating: sell high and buy low. So do expect MARA drop around the green line.
Nonetheless , as long as BIT is above 40k (and please correct me on that number), I think mining compagnies are/will make some good profits. Hence justifying their highly overvalued stock price.
I am in since 2.50 so I am ok with it. Not adding or withdrawing, just waiting; however folks out there with riskier price should beware of this... that's all I am saying.
Preparing to slideWhen Bitcoin becomes 10,000 dollars, you can buy MARA again for 3, 2, or 1$. You can also buy for 5$ and sell 10$ on descending trend.
Rise of MARAKeep an eye on MARA as it will most likely keep rising if bitcoin continues to go higher. (My opinion only)
MARA bullish W break, in my opinion the best btc mining companyConsiderably a strong day for MARA compared to BTC and other plays like RIOT. Today we saw a continuation of the W breakout, volume not as heavy as other times but we are still consolidating nicely before the next leg up! $MARA
MARA Test my Gangsta. 350+ End of year. I'm calling ItNot financial advice.
Please keep in mind that this price correlates heavily with Bitcoin price. Since it is a mining farm company for Bitcoin.
They have alot of stuff in the pipeline that tells me even 500 isn't out the question for this year.
They'll be alot of violent swings with this stock since the correlation to bitcoin is so heavily influenced.
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Soon to be cccllc
MARA $50 PTTaking a deeper dive into a MARA we see bullish divergence on the RSI. I like the uptrend its been fighting to hold. I also want to point out the consistency in the volume. We see more green candles than red, I do believe this will continue to move up with BTC reaching new all time highs.
$MARA breakout on the daily, with BTC at 60k expect fireworks.Excited to see this playout tomorrow. Don’t forget $MARA also has earnings earning this month so i can see this getting traction and picking up nicely.
MARA to test ATH of $48 with BTC at ATH$MARA and all other blockchain stocks on watch with BTC hitting new highs
Price: $40.70
Support: $40, $37.55
Resistance: $33.65, $48
Price Target: $48, $55, $60
$MARA - Correction Phase CompletedLooks like MARA completed its corrective phase and off to make another impulse wave (1). It tried to breakout recently forming an ascending triangle but ended up breaking down but quickly recovering breaking a key resistance at $42.22. Stimmys are out, BTC pumping ATH's, this is ready to make a next leg up. My PT is at least $45 by next week. Let me know what you think.
