These work better than the standard Bollinger Bands for setting extreme ranges. What I use these for is to use an oscillator to find an buy / sell signal then take that to the H L Bollinger bands and mark the spot. Most of the time, you will find that the price does not exceed this spot for the duration (length) of the H L Bollinger bands. This makes them...
With covered calls, I look for cheap underlyings with high implied volatility rank/high implied volatility and setups that will produce at least a 10% return if called away at the short call strike. WFT fits the bill, with a rank of 72, an implied of 84, and a 13.06% return if called away at the nearest out of the money strike. Here's the setup: Buy 100 shares...
An over extended Cypher pattern was created due to the news. The last hour retrace on Friday was mostly caused by traders closing out their positions before the weekend market close. There are two ways you could trade this while placing your stop just below support: 1. Take a long position upon the opening of the market. 2. Wait for a double bottom and take a...
$GPRO We cleared some key levels but a bigger move is coming. Notice the key levels we have passed and every time it has lead us to the next key point. I have made a killing the past 3 days trading the weekly OTM calls. I still have calls expiring Friday and calls expiring 1/2/15. I also grabbed 10 of the 1/17/15 $50 puts for $.43 just before the close today. ...
The idea here isn't very difficult to understand. DAL has made a run up from $35.51 on August 8th, where we saw a bounce off the 150EMA, a personal favorite area to get long for me, especially looking at the weekly chart for this. Anyways, from the top down: 1) Bullish RSI Holding 60 Support 2) Established Uptrend - Long Term 3) Bounce off 150 EMA 4) Long $4.46...
Just watching PA in this area. PA is Beginning to push up against both a down TL and resistance area. If price breaks through it may continue move up toward the recent 101 high. If it breaks lower look to the recent low where buying volume was very high. I have purchased a Jan.15 call w/a strike @ 100. w/ the holiday season approaching I believe PA will get the...