My white resistance line connects the daily close from Jun and Aug 2019. Yesterday AAPL opened at the line and sold off, and today it is a small inside bar so far. Watch price action on 30min, daily, and weekly.
Downside targets are 250, 238, 224-218
You can create stops based on loss amount and/or stock price. Stock should remain below 266, but adjust stops and if you believe in the technicals then you should be comfortable, with a swing trade, to hold a few contracts through volatile price moves.
For example, stock could open above your stop at 268 so you see a big paper loss but then it sells off and you start making a profit. You have to be able to hold options through these moves, so you 1) risk less capital, 2) have a clear plan for your trade and 3) have confidence in your technical indicators. If you are still learning, or are new, then you should be more cautious and keep your trades small.
Downside targets are 250, 238, 224-218
You can create stops based on loss amount and/or stock price. Stock should remain below 266, but adjust stops and if you believe in the technicals then you should be comfortable, with a swing trade, to hold a few contracts through volatile price moves.
For example, stock could open above your stop at 268 so you see a big paper loss but then it sells off and you start making a profit. You have to be able to hold options through these moves, so you 1) risk less capital, 2) have a clear plan for your trade and 3) have confidence in your technical indicators. If you are still learning, or are new, then you should be more cautious and keep your trades small.
Comment:
I closed puts yesterday when stock opened over 268 and started moving higher.