This startegy works well for anything whether you are Trading Options or Long-term investment. Please keep in mind that when trading options time can be your best friend/ or worse enemy. Practice and develop a plan before you go full throttle into trading. Have any questions? Send me a message.
how do you choose the underlying stock for this? how volatile should the stock be? also, how do we choose the strike price, expiry date, and do the greeks play a part in this strategy?
manuelba
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@avinazz, Traders spend too many hours analysing every single analysis there is, I don't I go by Resistance/Support and nothing else. Always pick the strike at the money and purchase at least 1 month and a half to expiration to rake in as much gains as possible.
avinazz
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@manuelba, can this strategy be used for puts as well?
manuelba
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@avinazz, You can as well, but I recommned you as a begginer to utilize this for Calls purposes only since the markets always will tend to break previous high. After you you have practiced and feel comfortable you can switch to Puts.
avinazz
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@manuelba, alright thank u! ur post was very helpful.