Max profit: $70
Probability of Profit: 83%
Profit Target relative to my Buying Power: 20%
Max loss with my risk management: ~$150
Req. Buy Power: $430 (max loss without management at expiry, no way to let this happen!)
Tasty IVR: 28 (average at futures)
Expiry: 36 days
Sell 1 !6CM1 Jun4' 0.8 Put
Buy 1 !6CM1 Jun4' 0.785 Put
Credit Call spread for 0.70cr...
After a downtrend we have a trading ring situation so we will have two possibilities:
• A strong breakout with a green candle with a high volume then a very strong buy signal.
• A breakout with a red candle then a very strong sell signal.
Personally, I recommend the first hypothesis.
after a long trading range, the market dropped. Then a pullback trying to reach the previous support was entamed.
if the market has a strong green volume, it is obvious that we will reach the previous tops of the market. If else, the support (yellow) will be broken and the market would begin a descend.
So let's look at the volumes and see what algotraders will decide...
6.4.20 I just got a personal message from a follower who I respect and like. I copied the message but left the follower's name out. Respectfully, this trader plans to be profitable with minimal or no discretion, except for entering a trade, and establishing a risk and reward... and then following through with the trade in robot fashion. This will not work, and it...