price is hidden only EMAs painted.
just 7 trades, or even just 7 spreads with long term options
When the EMAs cross down, how long in the future can one expect such next down move will last, how much will it go down?
For ex if one guesses a cross down at spy 180 and then one guesses, an ending support by jan 2016 at spy 135, and guesses a max possible upward extension by jan 2016 up to spy 235 (to be possibly kept under control with longs, hedging the delta) risk reward could in theory, reach 1 to 10.
Any idea to share on how to go with options about such possible bearish move?
Maybe an option spread: either a put debit bear spread, so no margin is required …, or a credit bear call spread, or anything else more creative.