Smart Money Concepts is a more sophisticated way of trading price action, while taking advantage of where institutions are likely to place their orders. This makes Smart Money Concepts a usable tool whenever you are dealing with hedge funds. What you are about to read is an elaborate tutorial explaining a lot about this trading strategy, including some trading...
📉 We use the Fibonacci retracements for spotting discount and premium levels in a range.
📝 We draw the Fibonacci tool from the bottom to the top in an uptrend, and from the top to the bottom in a downtrend.
Terminologies:
EQL: equilibrium = a state of physical balance (50%).
Discount: we buy from
Premium: we sell from
To make it more approachable, we can...
Skew. It can be a pain in the butt if you want to trade both delta neutral and probability neutral.
In QQQ, a delta neutral setup at the moment would be: selling a spread on the put side with the short put leg at the 275 (17 delta) and on the call side with the short call leg at the 344 (17 delta). However, this results in a short put strike 38 strikes away...
Pictured here is a delta neutral ratio'd short strangle set up in the September '20 expiry. It pays 8.60 ($860) and has delta/theta metrics of 1.01/4.12, and extrinsic currently equal to the premium received of 8.60.
The purpose of this demo is to show how continuous delta hedging might work in practice on a premium selling setup. The goal is to bring the setup...
Unless you've been buried under a rock somewhere, you'll know that we've experienced a big, broad market move from the late December "Dump Everything, Including the Kitchen Sink" lows at SPY 234 to where we finished Friday. If you were bullish assumption directional in virtually any broad market instrument or exchange-traded fund at or near those late...
