About meSelf made successful option trader. I learned how to trade options for income. I wanted to produce weekly and monthly income without having to submit to 40 hours every week doing something that I didn't want to do. I want to experience life!
If we can get the momentum to breakout we will go long at the high of the corresponding candle. Place our stop-loss at the low of the candle. Our profit target order will be placed at least 2 times the risk of the stop-loss.
Here is a short opportunity setting up. The trend is down and currently consolidating if we have a breakout to the downside, we are poised to take advantage with a sell stop entry order!
Stop loss will be entered once our entry is triggered.
If you were a logger and you were tasked with the job of cutting this redwood tree down and your choice of tools were the hatchet or the chainsaw, which would you choose to do your job? Let's say that you do not know how to use the chainsaw and you are afraid of personal injury with such a dangerous tool so you choose the hatchet instead. You know that you can...
I shorted 32 day 45 put crude oil option for $0.45. There's 1000 barrels for every contract so that's $450/contract. It only requires $1,800 to establish this position so that is an immediate ROI of 25% with over a 6% margin of error. This had a delta of .83 when opened.
Selling options to express an idea about the market is an infinitely better tool than simply being long or short the markets.
If you are bullish the stock or market, then you are long that particular market. To capitalize, one could buy the shares or bonds or whatever. To express this very same idea and get paid to do it, we can sell a put option below the...