This is an update to previous chart (linked). I am looking at strikes between 250-280, 18Feb expiry. Price should drop into "buy zone" if cryptos crash (this week).
The red dotted line is also marked on previous chart. I think buyers will rush in and move price back over the line, and I do not know if price will actually come all the way down into the buy zone. So if on 30m chart I see signs of bottoming or trend reversal, I will buy a small call position. 18Feb expiry - using less capital - gives me time and comfort to hold for an upwards reversal.
The red dotted line is also marked on previous chart. I think buyers will rush in and move price back over the line, and I do not know if price will actually come all the way down into the buy zone. So if on 30m chart I see signs of bottoming or trend reversal, I will buy a small call position. 18Feb expiry - using less capital - gives me time and comfort to hold for an upwards reversal.
Trade active:
COIN opened in the buy zone today and my GTC orders (comment above) were filled at 4.10 and 1.70. Since it is only 3 contracts total, I can now choose to add a few more at even lower prices or wait and hold this small position. I will exit if COIN breaks 200, and my actual loss will be very small.
Trade active:
I am keeping my 3 contracts and holding COIN now even below 200. IV is up and my loss is so small I can hold for a turn around. Also the expiry gives me time.
1 contract 18Feb 250 strike for $5.00
2 contracts 18Feb 280 strike for $2.00
This is a low capital risk trade. If I am not trading and stock opens lower or drops I will obtain these calls at a great price.
Going by closing prices, stock could hold 220 and bounce... if so I will adjust. Even though price has been holding 220 I think it may break... I am looking for selling to rise on 30m chart.