The Wheel is an options trading strategy where first we are selling puts to collect premium. In the instances where we get assigned the stock, we’re then selling calls to collect even more premium. As you know, I’ve been actively trading “The Wheel” since the middle of the year (2020) and at the time of writing this, have yet to realize a loss. In this article,...
This year has been one of the best to be a (smart) trader. We've had absolutely historic opportunities and I'm sure there's more to come. This little ascending wedge (abcde) could be creating an opportunity for a strangle (long & short). I have several strategies I follow for the other indices but I will occasionally play a strangle where I can see it going...
I've been thinking of ways to hedge my trades to mitigate risk as my trades are mainly naked sold options contracts. This CALL trade is the first live trade of a hedge theory I came up with. If everything goes well this should expire uneventfully. This Trade is paid for using 15% of the total Premium from the 2 other Nov naked option trades. I bought the...
Pinterest stock just gapped up from $45 to $51 ahead of earnings mainly on a sympathy run alongside SNAP huge Q3 beat. Today, the stock moved into the $53 range. My expectation heading into ER is that PINS will follow Snap and post a big Q3 beat as I believe the ad revenue will be YUGE as more and more people have been home from COVID and they're spending more...
NIFTY 50 INTRADAY TECHNICAL ANALYSIS....
I see WMT dropping tomorrow to point (D) but rising to point (E) after the stimulus deal, if there is one. I think there will be a deal and this will be a catalyst for WMT to moon shoot to an all time high. What is my strategy? I bought 30 puts today and plan on selling during tomorrows low, after I sell at the low point I am going to buy calls for $150 a month...
Hi all, Today I entered a trade in AirFrance - KLM which has been struck quite significantly by the pandemic. My guess is that they will recover in the coming months but there could be some nasty surprises on the way to it. To summarize: I expect some movement in this ticker the next few months. Directional trading is not easy since you basically need to be on...
Here is a global tech company / growth Gem in the shit times ( bargain?)....I 23% increased Revenue, and 197% profit > with more stellar growth pojected to the tune of +55%...With an all time high of $38 bucks, there's retest in the air over 12 months for a potential +55% mark up if get exercised on sold put at $24.50 by 15 OCT. If not stand to keep $500.00...
THis is a fairly aggressive set up with two weeks to run left on OCT options. I see some recover from these over-sold levels, so I sold an at the money put at 2.71 strike with protection out of money below. It's aggressive because the possible loss if much greater than the win ( premium). But I figure this is compensated for by a lower probability of being on...
Observations Although there big engulfing red candle today, the 50MA held.. barely. The body of the candle closed above the 50MA. Such strong bearish movement is likely going to continue tomorrow and it will likely test the 100MA. There are some strong supports though. The candle closed above the trendline, in addition to the 50MA support. The next...
The market can go either way next week, but likely down instead of up. It tested the resistance and failed. It's likely going to fall back and test the 50MA. Although I wouldn't take a directional trade, I would sell a credit spread with DTW before Oct 30th, with the short let at 11,000 or below. By the time it expires, 11,000 would be below 50MA and 100 MA...
Trade Idea Buy Facebook around 270-275 to target 300 with SL 246 Buy Call 285 Oct31 Good Luck
This looks too good to be true - or is it? Technical perfect with : 1. 5 waves correction 2. 62 % retraced from low to high this year 3. a double bottom with May low So I got aggressive and sold a bull put spread for premium two weeks expires. Sold 45 ( 4500 shares) contracts of American PUT strike 15.50 ......for 0.24 bought ...
Once again I'm re-entering a JETS options trade given the low volatility . The industry is still weak and I don't think we will see much upwards movement in the next month especially with the US elections heating up and the focus still on CN, Tech and Healthcare. For this trade, I sold calls close to a key price resistance point. I did not cover this options...
Trade Idea: BUY the stock at 490-480 to target 530 then 600 Buy Call OCT 16 Strike 520
$MSFT $CRM $ADBE $ORCL
Adding to pos.