WklyOptions
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Hi, T2W traders,
Going forward, I hope to post the weekly options trades for the next couple of wks - hopefully to stimulate other options traders to learn chart-reading skills with clarity & precision.
No matter the options strategy (and Greeks being exploited) - price movement is a major determinant of all options trades being profitable or unprofitable.
Here are the 4 trades closed for the 1st full week of May:
May 2014: WYNN (5/2/14) (+6.8%) in 9 days. EXPE (5/5/14) (+36.2%) in 4 days. F (5/8/14) (+46.8%) in 3 mos. FDO (5/9/14) (+17.8%) in 1 wk.
EVERYBODY can learn to read charts well. Any indicator can do the job - however, I learned a while ago that using multiple time frames helped greatly to identify, isolate, follow/monitor, and enter/execute into all my trades.
As a weekly options trader, I primarily focus on the Daily & Hourly charts - and key off the M15, M30, charts for precision entry signals.
Of course I make sure that my trade direction is in "alliance" with either/or/both the Weekly & Monthly trends. These trends are created by the sum of the largest institutional traders - so my weekly trades must "respect" their price action power.
On average, I follow approximately 40 sectors/ETFs, plus some 75 very liquid, very volatile market leaders/stocks to trade per week.
I try to capture 2-5 trades per week - and I ALWAYS FOCUS on PRECISION - my weekly goal is to WIN every single trade! If I'm setting STANDARDS for myself - I might as well set the highest, right?
I know there are very experienced traders and chart readers in T2W here - so I will not overload this thread's post with technical details. If readers/members want precise details and go over charts to the 4 trades above (closed trades), just PM me and I can send you details of the trade setups, the waiting part, the entry, and the trade mgmt all the way thru the exit.
Briefly, the technical features I require include:
1. Trading at Key Support or Key Resistance - as defined by at least a double bottom (or top) - but can be triple or quadruple bottoms (or tops).
2. Higher time frames (Weekly and/or Monthly) have dominant trends - e.g., uptrend defined by upward sloping EMA(20) plus prices above the EMA(20) line.
3. I wait for a pull-back against the dominant trend.
4. I key off the M15/M30 charts for entry.
5. I use At-the-Money options to maximize exploiting extrinsic time value. I do this by selling credit spreads. I use credit spreads about 90% of my trades.
6. Sometimes if the higher time frames are extraordinary in strength & momentum, I will use Out-of-the-Money options (calls if going upside) to pay a small debit per option - and try to maximize leverage & profitably if the BIG MOVE occurs before expiry of the weekly option. This is the #1 problem with buying Out-of-the-Money weekly options - all of the factors including the direction & magnitude & appearance of the BIG MOVE - must be perfect! Using OTM options require that i accept the possibility of 100% total loss of the debit - and may require a 2nd re-entry (to fire a 2nd "bullet" into the setup). Of course - the ADVANTAGE is if that if/when my analysis is correct, the profits can easily be 300% or more! I use OTM debit trades about 10% of the time.
Since I key off the M15/M30 charts for entry - almost 100% of my trades immediately become profitable quickly. This is a CLUE itself - if the trade entry does not become profitable quickly, I must be ready to hedge/adjust/exit.
Later this weekend - if I find an ideal weekly option trade setup - I will post it here with some of the technical details as above applied to its setup.
Over the past several years of trading weekly options - there is hardly ever a week where I cannot find at least 1 solid trade setup. However, the setups may happen on Mon - Fri anytime!
This is why trading is very difficult - requires diligent stalking, tracking, plus conviction to execute the proper trade.
Well, that's it for now - pls feel free to PM me directly with questions or if you want a copy of the trades above in PDF format. I will post more if/when I see the next solid trade setup(s).
Thank you.
WklyOptions
Going forward, I hope to post the weekly options trades for the next couple of wks - hopefully to stimulate other options traders to learn chart-reading skills with clarity & precision.
No matter the options strategy (and Greeks being exploited) - price movement is a major determinant of all options trades being profitable or unprofitable.
Here are the 4 trades closed for the 1st full week of May:
May 2014: WYNN (5/2/14) (+6.8%) in 9 days. EXPE (5/5/14) (+36.2%) in 4 days. F (5/8/14) (+46.8%) in 3 mos. FDO (5/9/14) (+17.8%) in 1 wk.
EVERYBODY can learn to read charts well. Any indicator can do the job - however, I learned a while ago that using multiple time frames helped greatly to identify, isolate, follow/monitor, and enter/execute into all my trades.
As a weekly options trader, I primarily focus on the Daily & Hourly charts - and key off the M15, M30, charts for precision entry signals.
Of course I make sure that my trade direction is in "alliance" with either/or/both the Weekly & Monthly trends. These trends are created by the sum of the largest institutional traders - so my weekly trades must "respect" their price action power.
On average, I follow approximately 40 sectors/ETFs, plus some 75 very liquid, very volatile market leaders/stocks to trade per week.
I try to capture 2-5 trades per week - and I ALWAYS FOCUS on PRECISION - my weekly goal is to WIN every single trade! If I'm setting STANDARDS for myself - I might as well set the highest, right?
I know there are very experienced traders and chart readers in T2W here - so I will not overload this thread's post with technical details. If readers/members want precise details and go over charts to the 4 trades above (closed trades), just PM me and I can send you details of the trade setups, the waiting part, the entry, and the trade mgmt all the way thru the exit.
Briefly, the technical features I require include:
1. Trading at Key Support or Key Resistance - as defined by at least a double bottom (or top) - but can be triple or quadruple bottoms (or tops).
2. Higher time frames (Weekly and/or Monthly) have dominant trends - e.g., uptrend defined by upward sloping EMA(20) plus prices above the EMA(20) line.
3. I wait for a pull-back against the dominant trend.
4. I key off the M15/M30 charts for entry.
5. I use At-the-Money options to maximize exploiting extrinsic time value. I do this by selling credit spreads. I use credit spreads about 90% of my trades.
6. Sometimes if the higher time frames are extraordinary in strength & momentum, I will use Out-of-the-Money options (calls if going upside) to pay a small debit per option - and try to maximize leverage & profitably if the BIG MOVE occurs before expiry of the weekly option. This is the #1 problem with buying Out-of-the-Money weekly options - all of the factors including the direction & magnitude & appearance of the BIG MOVE - must be perfect! Using OTM options require that i accept the possibility of 100% total loss of the debit - and may require a 2nd re-entry (to fire a 2nd "bullet" into the setup). Of course - the ADVANTAGE is if that if/when my analysis is correct, the profits can easily be 300% or more! I use OTM debit trades about 10% of the time.
Since I key off the M15/M30 charts for entry - almost 100% of my trades immediately become profitable quickly. This is a CLUE itself - if the trade entry does not become profitable quickly, I must be ready to hedge/adjust/exit.
Later this weekend - if I find an ideal weekly option trade setup - I will post it here with some of the technical details as above applied to its setup.
Over the past several years of trading weekly options - there is hardly ever a week where I cannot find at least 1 solid trade setup. However, the setups may happen on Mon - Fri anytime!
This is why trading is very difficult - requires diligent stalking, tracking, plus conviction to execute the proper trade.
Well, that's it for now - pls feel free to PM me directly with questions or if you want a copy of the trades above in PDF format. I will post more if/when I see the next solid trade setup(s).
Thank you.
WklyOptions
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