SPX - Nice trend day in play. After defending previous day low we moved higher and breaking previous day high. Bull Puts on 1 + 1.5 sigma #BouhmidiBands working out fine today.
Will be interesting, LCID has a history of filling the gap, something we could see happening, but is also forming a bullish consolidation. If it doesn't break out/down before theta is priced in from this weekend, it could be a great spread.
Put/Call Ratio's 9-Day EMA Still in No Man's Land
I got a good hit on my last earnings play which I didn't post TRV so I'm going for one on this. Put Spread $232.50/220 Cost per spread was 4.36 Holding 2 spreads. Nov 8 exp We will see what happens. Looks like a small bearish divergence. God speed.
$3.99 Option Cost EXP October 18, this is a rather expensive trade I normally wouldn't pay this much for an option my general rule is $1.3-1.6 for a 3 week option per $5 width but I'll go for it since I bought it while it was into the money. 250/240 Put Spread Target is $7 profit at sale which is $300 profit at target Max loss is $300 if it reverses.
CVNA is still a bearish position for me I plan to put in a 70/75 Bear Put Spread as it seems to be continuing sideways I felt my 60/65 spread was too close and I took a loss on it. In the end it may still have been a fine position I could have over reacted out of fear. I plan to put on this trade $70 profit max loss is $430 I will buy 2 spreads $140 max and...
Reward 0.64 Cost = 2 - 0.64 = 1.36 Target ROI = 47% Risk @SL = 0.92 when price hit $2 ITM = 0.92 - 0.72 = 0.20 RRR = 0.64 / 0.20 = 3.2 : 1
Sell OTM credit spreads at interim and strong resistance /support. ATM place your SL, where the price is half of spread ~ 0.53
Trading without a risk management is gambling. Gambling relies on hope. Selling OTM spreads depends on a 75% success rate and surviving a few big losses. The RR is very low if you are aiming to collect 25% of the spread. I traded 12 months solely on BullPut and this has taught me well. It's a losing strategy based on the misconception of high win rate and...
Entry when price rebounded at Support. Sold at $0.78 Planned RR = 1.6 By moving up the SL with the uptrend, profits were protected, hence risk became 0 Exit - Bought 0.08 Gain $0.70 ROC =16% per month
After the "healthy" correction, kc touched the 100 day MA around 153 as indicated previously as a potential target. Furthermore, we are hitting the lower end of the trend channel (blue). I am looking for some support coming in here. As vol softened during the sell off, threeways, selling put spread, buying call seem to be good long market, long vega strategies...