I want to show you, how you can participate with fix risk from option strategys comparing to chart analysis:
This bullish strategy can use with stocks that have potential breakout chance, or either long-term potential.
In this example of TTD use BB and SMA 50 for support (buying short put) and resistance for selling long put. We think that TTD wont go below 700 and have momentum to break through 820:
Trades to open position No. Price Total
sell 5th Feb $820.00 Put 1x100 $60.75 $6075.00
buy 5th Feb $700.00 Put 1x100 $12.70 $-1270.00
------------------------------------------------------------------------
Total $4805.00
Take care of time of expiration date. In this scenario we used 5th feb with total return of 4805 and total risk of 7195.
So, I hope you can follow my thoughts. Comments are welcome.
This bullish strategy can use with stocks that have potential breakout chance, or either long-term potential.
In this example of TTD use BB and SMA 50 for support (buying short put) and resistance for selling long put. We think that TTD wont go below 700 and have momentum to break through 820:
Trades to open position No. Price Total
sell 5th Feb $820.00 Put 1x100 $60.75 $6075.00
buy 5th Feb $700.00 Put 1x100 $12.70 $-1270.00
------------------------------------------------------------------------
Total $4805.00
Take care of time of expiration date. In this scenario we used 5th feb with total return of 4805 and total risk of 7195.
So, I hope you can follow my thoughts. Comments are welcome.