WAL Western Alliance Bancorporation Options Ahead of EarningsIf you haven`t bought WAL before the previous earnings:
Then analyzing the options chain and the chart patterns of WAL Western Alliance Bancorporation prior to the earnings report this week,
I would consider purchasing the 52.50usd strike price in the money Calls with
an expiration date of 2024-6-21,
for a premium of approximately $6.35.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
Optionsstrategies
Long term strategyThis could be a great opportunity to gather passive income. The price is landing on a strong monthly support at 33-34. The next support level is at 28. Buy here and sell covered calls. Example:
100 stocks at 34.4 = $ 3440
1 covered call exp 05/24 a month from now. Strike 36. Cost $ 108.
Profit %: 100*(108/3440) = 3.13% a month. If you do it every month is close to 38% a year. If the stocks are assigned even more.
BANK NIFTY INTRADAY LEVELS FOR 24/04/2024BUY ABOVE - 48120
SL - 47940
TARGETS - 48260,48400,48510
SELL BELOW - 47940
SL - 48120
TARGETS - 47840,47700,47560
NO TRADE ZONE - 47940 to 48120
Previous Day High - 48260
Previous Day Low - 47940
Based on price action major support & resistance's are here, the red lines acts as resistances, the green lines acts as supports. If the price breaks the support/resistance, it will move to the next support/resistance line. White lines indicates previous day high & low, high acts as a resistance & low acts as a support for next day.
Trendlines are also significant to price action. If the price is above/below the trendlines, can expect an UP/DOWN with aggressive move.
Please NOTE: this levels are for intraday trading only.
Disclaimer - All information on this page is for educational purposes only,
we are not SEBI Registered, Please consult a SEBI registered financial advisor for your financial matters before investing And taking any decision. We are not responsible for any profit/loss you made.
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NIFTY INTRADAY LEVELS FOR 24/04/2024BUY ABOVE - 22430
SL - 22360
TARGETS - 22470,22510,22570
SELL BELOW - 22360
SL - 22430
TARGETS - 22320,22270,22210
NO TRADE ZONE - 22360 to 22430
Previous Day High - 22430
Previous Day Low - 22360
Based on price action major support & resistance's are here, the red lines acts as resistances, the green lines acts as supports. If the price breaks the support/resistance, it will move to the next support/resistance line. White lines indicates previous day high & low, high acts as a resistance & low acts as a support for next day.
Trendlines are also significant to price action. If the price is above/below the trendlines, can expect an UP/DOWN with aggressive move.
Please NOTE: this levels are for intraday trading only.
Disclaimer - All information on this page is for educational purposes only,
we are not SEBI Registered, Please consult a SEBI registered financial advisor for your financial matters before investing And taking any decision. We are not responsible for any profit/loss you made.
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MSFT Microsoft Corporation Options Ahead of EarningsIf you haven`t entered MSFT when they bought 49% of OpenAI:
nor on the comparison to AMZN and GOOGL:
Then analyzing the options chain and the chart patterns of MSFT Microsoft Corporation prior to the earnings report this week,
I would consider purchasing the 410usd strike price Calls with
an expiration date of 2024-6-21,
for a premium of approximately $14.25.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
BANK NIFTY INTRADAY LEVELS FOR 23/04/2024BUY ABOVE - 48120
SL - 47950
TARGETS - 48260,48400,48510
SELL BELOW - 47840
SL - 47950
TARGETS - 47700,47560,47400
NO TRADE ZONE - 47840 to 48120
Previous Day High - 48120
Previous Day Low - 47700
Based on price action major support & resistance's are here, the red lines acts as resistances, the green lines acts as supports. If the price breaks the support/resistance, it will move to the next support/resistance line. White lines indicates previous day high & low, high acts as a resistance & low acts as a support for next day.
Trendlines are also significant to price action. If the price is above/below the trendlines, can expect an UP/DOWN with aggressive move.
Please NOTE: this levels are for intraday trading only.
Disclaimer - All information on this page is for educational purposes only,
we are not SEBI Registered, Please consult a SEBI registered financial advisor for your financial matters before investing And taking any decision. We are not responsible for any profit/loss you made.
Request your support and engagement by liking and commenting & follow to provide encouragement
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NIFTY INTRADAY LEVELS FOR 23/04/2024BUY ABOVE - 22360
SL - 22320
TARGETS - 22430,22470,22510
SELL BELOW - 22270
SL - 22320
TARGETS - 22210,22160,22100
NO TRADE ZONE - 22270 to 22360
Previous Day High - 22360
Previous Day Low - 22210
Based on price action major support & resistance's are here, the red lines acts as resistances, the green lines acts as supports. If the price breaks the support/resistance, it will move to the next support/resistance line. White lines indicates previous day high & low, high acts as a resistance & low acts as a support for next day.
Trendlines are also significant to price action. If the price is above/below the trendlines, can expect an UP/DOWN with aggressive move.
Please NOTE: this levels are for intraday trading only.
Disclaimer - All information on this page is for educational purposes only,
we are not SEBI Registered, Please consult a SEBI registered financial advisor for your financial matters before investing And taking any decision. We are not responsible for any profit/loss you made.
Request your support and engagement by liking and commenting & follow to provide encouragement
HAPPY TRADING 👍
BANK NIFTY INTRADAY LEVELS FOR 22/04/2024BUY ABOVE - 47700
SL - 47560
TARGETS - 47840,47950,48120
SELL BELOW - 47560
SL - 47700
TARGETS - 47400,47300,47200
NO TRADE ZONE - 47560 to 47700
Previous Day High - 47700
Previous Day Low - 46660
Based on price action major support & resistance's are here, the red lines acts as resistances, the green lines acts as supports. If the price breaks the support/resistance, it will move to the next support/resistance line. White lines indicates previous day high & low, high acts as a resistance & low acts as a support for next day.
Trendlines are also significant to price action. If the price is above/below the trendlines, can expect an UP/DOWN with aggressive move.
Please NOTE: this levels are for intraday trading only.
Disclaimer - All information on this page is for educational purposes only,
we are not SEBI Registered, Please consult a SEBI registered financial advisor for your financial matters before investing And taking any decision. We are not responsible for any profit/loss you made.
Request your support and engagement by liking and commenting & follow to provide encouragement
HAPPY TRADING 👍
NIFTY INTRADAY LEVELS FOR 22/04/2024BUY ABOVE - 22160
SL - 22100
TARGETS - 22210,22270,22320
SELL BELOW - 22100
SL - 22160
TARGETS - 22050,22000,21960
NO TRADE ZONE - 22100 to 22160
Previous Day High - 22160
Previous Day Low - 21800
Based on price action major support & resistance's are here, the red lines acts as resistances, the green lines acts as supports. If the price breaks the support/resistance, it will move to the next support/resistance line. White lines indicates previous day high & low, high acts as a resistance & low acts as a support for next day.
Trendlines are also significant to price action. If the price is above/below the trendlines, can expect an UP/DOWN with aggressive move.
Please NOTE: this levels are for intraday trading only.
Disclaimer - All information on this page is for educational purposes only,
we are not SEBI Registered, Please consult a SEBI registered financial advisor for your financial matters before investing And taking any decision. We are not responsible for any profit/loss you made.
Request your support and engagement by liking and commenting & follow to provide encouragement
HAPPY TRADING 👍
BANK NIFTY INTRADAY LEVELS 19/04/2024BUY ABOVE - 47200
SL - 47050
TARGETS - 47300,47410,47560
SELL BELOW - 46980
SL - 47050
TARGETS - 476830,46750,46660
NO TRADE ZONE - 46980 to 47200
Previous Day High - 47840
Previous Day Low - 46980
Based on price action major support & resistance's are here, the red lines acts as resistances, the green lines acts as supports. If the price breaks the support/resistance, it will move to the next support/resistance line. White lines indicates previous day high & low, high acts as a resistance & low acts as a support for next day.
Trendlines are also significant to price action. If the price is above/below the trendlines, can expect an UP/DOWN with aggressive move.
Please NOTE: this levels are for intraday trading only.
Disclaimer - All information on this page is for educational purposes only,
we are not SEBI Registered, Please consult a SEBI registered financial advisor for your financial matters before investing And taking any decision. We are not responsible for any profit/loss you made.
Request your support and engagement by liking and commenting & follow to provide encouragement
HAPPY TRADING 👍
NIFTY INTRADAY LEVELS FOR 19/04/2024BUY ABOVE - 22050
SL - 22000
TARGETS - 22080,22120,22160
SELL BELOW - 21960
SL - 22000
TARGETS - 21920,21880,21840
NO TRADE ZONE - 21960 to 22050
Previous Day High - 22320
Previous Day Low - 21960
Based on price action major support & resistance's are here, the red lines acts as resistances, the green lines acts as supports. If the price breaks the support/resistance, it will move to the next support/resistance line. White lines indicates previous day high & low, high acts as a resistance & low acts as a support for next day.
Trendlines are also significant to price action. If the price is above/below the trendlines, can expect an UP/DOWN with aggressive move.
Please NOTE: this levels are for intraday trading only.
Disclaimer - All information on this page is for educational purposes only,
we are not SEBI Registered, Please consult a SEBI registered financial advisor for your financial matters before investing And taking any decision. We are not responsible for any profit/loss you made.
Request your support and engagement by liking and commenting & follow to provide encouragement
HAPPY TRADING 👍
BANK NIFTY INTRADAY LEVELS FOR 18/04/2024I'M BACK TO TRADINGVIEW AGAIN Let's Do Rock the Levels With me
How Many People are Happy Now
BUY ABOVE - 47560
SL - 47410
TARGETS - 47700,47840,47950
SELL BELOW - 47410
SL - 47560
TARGETS - 47300,47200,47050
NO TRADE ZONE - 47410 to 47560
Previous Day High - 47600
Previous Day Low - 47300
Based on price action major support & resistance's are here, the red lines acts as resistances, the green lines acts as supports. If the price breaks the support/resistance, it will move to the next support/resistance line. White lines indicates previous day high & low, high acts as a resistance & low acts as a support for next day.
Trendlines are also significant to price action. If the price is above/below the trendlines, can expect an UP/DOWN with aggressive move.
Please NOTE: this levels are for intraday trading only.
Disclaimer - All information on this page is for educational purposes only,
we are not SEBI Registered, Please consult a SEBI registered financial advisor for your financial matters before investing And taking any decision. We are not responsible for any profit/loss you made.
Request your support and engagement by liking and commenting & follow to provide encouragement
HAPPY TRADING 👍
NIFTY INTRADAY LEVELS FOR 18/04/2024I'M BACK TO TRADINGVIEW AGAIN - Let's Do Rock the Levels With me -
How Many People are Happy Now
BUY ABOVE - 22210
SL - 22160
TARGETS - 22270,22320,22360
SELL BELOW - 22120
SL - 22160
TARGETS - 22080,22050,22020
NO TRADE ZONE - 22120 to 22210
Previous Day High - 22210
Previous Day Low - 22080
Based on price action major support & resistance's are here, the red lines acts as resistances, the green lines acts as supports. If the price breaks the support/resistance, it will move to the next support/resistance line. White lines indicates previous day high & low, high acts as a resistance & low acts as a support for next day.
Trendlines are also significant to price action. If the price is above/below the trendlines, can expect an UP/DOWN with aggressive move.
Please NOTE: this levels are for intraday trading only.
Disclaimer - All information on this page is for educational purposes only,
we are not SEBI Registered, Please consult a SEBI registered financial advisor for your financial matters before investing And taking any decision. We are not responsible for any profit/loss you made.
Request your support and engagement by liking and commenting & follow to provide encouragement
HAPPY TRADING 👍
Rolled (IRA): TLT Jan 17th 2025 Short Calls to Feb 21st... for a .28 credit.
Comments: Rolling out the short call aspect of my covered calls (See Post Below) a month for a small credit. Cost basis/break even in the setup is now 90.20.
The small consolation prize is that this keeps my break even right around with the underlying is currently trading.
101% Option Play on NVDA Today! Just wanted to share our heck of a option play that we pulled this morning with NVDA, as a projected pullback from the recent bounce and reaction from the CPI/PPI/Unemply. Data that was release this weekend.
CNBC Analysts touted this as a safehaven, but I thought it was a false narrative based on the TA and what we were seeing on the charts going into the Aftermarket Session, yesterday.
Pullbacks are healthy, so we exact a rebound back to the north based on the past few trading sessions.
Stay Tuned for more as we move forward with providing you our Daily MyMI Option Playz at MyMI Wallet!
STZ Constellation Brands Options Ahead of EarningsAnalyzing the options chain and the chart patterns of STZ Constellation Brands prior to the earnings report this week,
I would consider purchasing the 270usd strike price Calls with
an expiration date of 2024-4-12,
for a premium of approximately $3.10.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
S&P 500: Bouhmidi-Reversal now with TPOAfter the initial balance, we see that the index continues its weakness and has broken through the 1 Bouhmidi-Bands and the point of control (POC) of Wednesday . Today, the previous day's low and the 1.5 Bouhmidi-Band converge at 5138. A test of 5138 is possible with even a reversal towards the BB range. I also now include TPO charts
Opening (IRA): KWEB May 17th 24 Monied Covered CallLooking to get a fill on a monied covered call in KWEB (IVR/IV 12/33.2) while I wait around for some (or any) vol to show itself in the broader market. That IVR isn't great, but I'm going small so that I can potentially add at more favorable strikes/share cost bases should an opportunity present itself.
It's pre-market, so bid/ask is somewhat wide on both the shares and the short call, but I'm looking to buy a one lot and sell a -75 delta call against for around 26.09 in order to emulate the delta metrics of a 25 delta short put, have built-in short call defense, and to take advantage of IV skew on the call side (it's 39.4% at the 24 call strike; 32.4% at the 24 put).
On a side note, the on margin variant of a Plain Jane short put isn't paying spectacularly from a dollar and cents standpoint: the May 17th 24 short put is paying .37 at the mid, which isn't anything to write home about, but that would be on a BPE of 6.72 (5.51% ROC at max; 2.75% at 50% max; 23.63 break even) should you want to go the standard short put/acquire/cover route.
Break Even/Cost Basis in Shares/Buying Power Effect: 23.09
Max Profit: .91 ($91)
ROC at Max: 3.49%
ROC at 50% max: 1.74%
In all likelihood, I'll have to "penny up" if I don't get a fill for 23.09 ... .
Options Blueprint Series: Leveraging Diagonals with Corn FuturesIntroduction to Corn Futures (CBOT)
Corn Futures, central to the commodities market, are traded on the Chicago Board of Trade (CBOT). These futures contracts are standardized agreements to buy or sell 5,000 bushels of corn, providing traders with a mechanism to hedge against price changes or to be exposed to future price movements in the agricultural sector.
Contract Specifications:
Contract Size: 5,000 bushels
Quotation: Cents per bushel
Minimum Tick Size: ¼ cent per bushel, equivalent to $12.50 per contract
Trading Hours: Sunday to Friday, electronic trading from 7:00 PM to 7:45 AM CT, and Monday to Friday, daytime trading from 8:30 AM to 1:20 PM CT
Contract Months: March, May, July, September, December, with additional serial months providing year-round trading opportunities
Margin Requirements: Margins are set by the exchange and can vary, with initial margins typically being a fraction of the contract value to secure a position ($1,300 at the time of this publication)
The liquidity and volume in Corn Futures make them an attractive market for traders. Factors influencing corn prices include weather patterns affecting crop yields, global supply and demand dynamics, and changes in energy prices due to corn's role in ethanol production.
Understanding Diagonal Spreads
Diagonal Spreads are a sophisticated options strategy that involves simultaneously buying and selling options of the same type (either calls or puts) with different strike prices and expiration dates. This approach is designed to leverage the time decay (theta) and volatility differences between contracts, making it particularly suitable for markets with expected directional moves and distinct volatility characteristics, like Corn Futures.
Key Components:
Long Leg: Involves buying an option with a longer expiration date. This option acts as the foundational position, typically chosen to be in-the-money (ITM) to capitalize on intrinsic value while also benefiting from time decay at a slower rate due to its longer duration.
Short Leg: Consists of selling an option with a shorter expiration date and a different strike price, usually out-of-the-money (OTM). This leg generates immediate income from the premium received, which helps offset the cost of the long leg.
Strategic Advantages:
Directional Flexibility: Diagonal spreads can be tailored to bullish or bearish outlooks depending on the selection of calls or puts, strikes and expirations.
Time Decay Harnessing: By selling a shorter-term option, the strategy aims to benefit from the rapid acceleration of time decay on the sold option, improving the position's overall theta.
Given the cyclical nature of the agricultural sector and the specific factors influencing corn prices, diagonal spreads offer a strategic method to trade Corn Futures options. They provide a balance between long-term market views and short-term income generation through premium collection on the short leg.
Application of Diagonal Spreads to Corn Futures
In applying Diagonal Spreads to Corn Futures, we focus on a bearish strategy to capitalize on an anticipated gap fill below the current price level. This strategic choice is driven by the analysis of Corn Futures' price action, indicating potential downward movement. A bearish diagonal spread can be particularly effective in such scenarios, offering the flexibility to benefit from both time decay and directional movement.
Bearish Diagonal Spread Setup:
Long Leg (Buy Put): Select a put option with a longer expiration date to serve as the foundation of your bearish position. Choose a strike price that is at-the-money or in-the-money (ATM/ITM) to ensure intrinsic value.
Short Leg (Sell Put): Sell a put option with a shorter expiration date at a lower strike price that is out-of-the-money (OTM).
Trade Example:
Assumption: Corn Futures are trading at 434 cents per bushel.
Long Put: Buy a 47-day put option with a strike price of 435 cents, paying a premium of 7.49 cents per bushel ($374.5 – point value =$50).
Short Put: Sell a 19-day put option with a strike price of 415 cents, receiving a premium of 1.01 cents per bushel ($50.5 – point value =$50).
As seen on the below screenshot, we are using the CME Options Calculator in order to generate fair value prices and Greeks for any options on futures contracts.
The goal is for Corn Futures to decline towards the 415-cent level (origin of the gap).
Risk Considerations: While diagonal spreads can offer controlled risk (premium paid = 6.48 = 7.49 – 1.01 = $324 – point value =$50) and strategic flexibility, it's crucial to be mindful of the potential for loss, particularly if the market moves sharply in an unintended direction. Employing risk management techniques can help mitigate these risks:
Adjustments and Rolls: Proactively manage the position by adjusting or rolling the short leg to a different strike price or expiration date in response to market movements or changes in volatility. This can help collect additional premium and potentially offset losses on the long leg.
Use of Stop Losses: Implement stop-loss orders based on predefined risk tolerance levels. This could be set as a percentage of the initial investment or based on the technical levels in Corn Futures prices.
Diversification: While not specific to the strategy, diversifying your portfolio beyond just Corn Futures options can help manage overall market risk. Different markets may react differently to the same economic indicators or geopolitical events, spreading your risk exposure.
Regular Monitoring: Given the dynamic nature of Corn Futures and the options market, regular monitoring is crucial. Stay informed about market conditions, news impacting agricultural commodities, and changes in volatility that could affect your position.
Diagonal spreads in Corn Futures offer a strategic avenue for traders looking to exploit market conditions and time decay with a defined risk profile. However, the key to successful implementation lies in diligent risk management, including making informed adjustments, employing diversification, and maintaining a disciplined approach to monitoring and exiting positions.
Conclusion
In this edition of the Options Blueprint Series, we explored the strategic application of Diagonal Spreads to Corn Futures traded on the Chicago Board of Trade (CBOT). This advanced options strategy offers traders a nuanced approach to potentially capitalize on market movements, leveraging the inherent time decay of options to enhance potential returns.
Employing Diagonal Spreads allows traders to express a directional bias—bearish, in our case study—while managing the investment's risk profile through a combination of long-term and short-term options. By buying a longer-dated, in-the-money put and selling a shorter-dated, out-of-the-money put, traders can set up a position that benefits from both the expected downward movement towards a gap fill and the accelerated time decay of the sold option.
However, as with any sophisticated trading strategy, understanding and managing the associated risks is paramount. Directional risks, volatility changes, and the potential for early assignment on the short leg require vigilant management and a readiness to adjust the position as market conditions evolve.
By adhering to disciplined risk management practices—such as making timely adjustments, employing stop losses, and maintaining portfolio diversification—traders can seek to navigate the complexities of the options market and aim for consistent, strategic gains.
The Corn Futures market, with its dynamic price movements influenced by a range of factors from weather to global supply and demand dynamics, provides a fertile ground for applying Diagonal Spreads. Traders who invest the time to understand both the underlying market and the intricacies of this options strategy may find themselves well-positioned to exploit opportunities that arise from market volatility.
In summary, Diagonal Spreads present a strategic option for traders looking to leverage market insights and options mechanics in pursuit of their trading objectives. As always, education and practice are key to mastering these techniques, with paper trading offering a risk-free way to hone one's skills before venturing into live markets.
When charting futures, the data provided could be delayed. Traders working with the ticker symbols discussed in this idea may prefer to use CME Group real-time data plan on TradingView: www.tradingview.com This consideration is particularly important for shorter-term traders, whereas it may be less critical for those focused on longer-term trading strategies.
General Disclaimer:
The trade ideas presented herein are solely for illustrative purposes forming a part of a case study intended to demonstrate key principles in risk management within the context of the specific market scenarios discussed. These ideas are not to be interpreted as investment recommendations or financial advice. They do not endorse or promote any specific trading strategies, financial products, or services. The information provided is based on data believed to be reliable; however, its accuracy or completeness cannot be guaranteed. Trading in financial markets involves risks, including the potential loss of principal. Each individual should conduct their own research and consult with professional financial advisors before making any investment decisions. The author or publisher of this content bears no responsibility for any actions taken based on the information provided or for any resultant financial or other losses.
LEVI Strauss Options Ahead of EarningsIf you haven`t bought the dip on LEVI:
Then analyzing the options chain and the chart patterns of LEVI Strauss prior to the earnings report this week,
I would consider purchasing the 21usd strike price Calls with
an expiration date of 2024-10-18,
for a premium of approximately $1.72.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
SMPL The Simply Good Foods Company Options Ahead of EarningsAnalyzing the options chain and the chart patterns of SMPL The Simply Good Foods Company prior to the earnings report this week,
I would consider purchasing the 35usd strike price Puts with
an expiration date of 2024-4-19,
for a premium of approximately $1.90.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.