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Puts

Example of put entry in a downtrendThis is another day trade made in context of the daily chart I posted recently (linked). TSLA daily chart is neutral but the markets are bearish, and so are the 5 and 30 minute TSLA charts, shown here. On the 30m chart, the 20MA is under the 50MA and 200MA. Red markers shows RSI and Stochastic gave bearish warnings and there resistance is around 1060 on both timeframes. This makes for a stronger trade setup. The yellow circles mark put entry (where and when I bought puts). In this example I bought weekly 960 puts and did not expect price to push as high as 1068. However with only a few contracts I was willing to hold for a reversal, or I will take a loss. When volatile stocks like TSLA see rapid price movement the IV rises also, so my put prices did not drop too much. As I publish this, price fought at resistance and looks like it may move lower. So I will give this a little more time and see if the trade starts working. If Nasdaq starts losing more then TSLA should start dropping with it.
NASDAQ:TSLAShort
by OptionsRising
5
Options day trade example. Swing trade entry.When the $DJI was up 200pts this afternoon, I was skeptical it could stay that high so I started looking at DIA. I also have a bearish bias right now on the markets. I prefer options on DIA vs SPY because SPY options are wilder and more volatile. People using gamma and delta strategies make it harder for "simple" long option traders like me. I only trade this index when I have a strong setup. DIA was around 365 and I saw this as a resistance area. I bought weekly 364 puts for a day trade and as I started creating this chart the index dropped fast. I have exited most of my puts and will close the rest today. In general, you should have a consistent set of indicators/signs that you use with success. Then you can spot a good setup quickly. The charts show you what I saw. I am leaning bearish on the daily chart, and RSI supports my idea (reversal under 65 after dip below 33.33). Daily stochastic gave a warning sign (red arrow), so after the strong reversal rally I am looking for price to move below the channel, back to 355. If you use 365 for a swing trade entry and the index continues up to the top of the channel, the stop losses would be between 365.20 and 366, so this is a low-risk options trade. For today's trade I used the 30m and 5m charts. Many traders (me too) get stuck watching price action and forget to sell at identified targets. 362.80-362.50 was my range to exit puts, and I held some for more downside or to exit green before end of day. *** As I post this, 363.50 is also a good swing put entry on 30m chart, but I would use a smaller position and hold through price swings.
AMEX:DIAShort
by OptionsRising
2
Example of strong trade setup using multiple timeframesThis is as good as it gets when it comes to a high probability trade setup with low risk. FB is one of my "basket stocks" that I watch regularly for good option trades. Using the daily and 30min charts, there was strong reason to buy puts today. This was a nice day trade if you use the 30m chart (with 5m) and take profits as price comes down from 334 to lower moving averages. Note that price came down to 50ma and bounced. So you set your exit to OCO - either at stop loss or at target price. RSI supported the bearish outlook because it dipped below 33.33 and as price bounced RSI stalled under 66.66. Usually 65 is a bear resistance unless there is a sharp rally or higher volatility. On the daily chart, today's open provided a low-risk entry for swing puts. If you miss the setup near open, there is another entry as price bounces from the first drop. Yesterday RSI moved up to test 50 as price went up. So swing puts will give you time for this price to turn down below 330 again, and RSI should close be lower today or tomorrow.
NASDAQ:METAShort
by OptionsRising
6
AMD levels to watch going in to 1/10/22NASDAQ:AMD $AMD - watching for a break over 136.34 or break under 130.77. Trading under its 50 MA, and its 12/26 EMA 12 EMA just crossed under 26 EMA Well above its 200 MA (macro uptrend) 1/7/22: BTO/STO option trades on premiums >100k = bullish. Volume on the 130p and 140c. Lots of OI on the 150c\1 35p - watch for changes in these Local support at 132.01 - created on Nov 4, tested on Dec 14, confirmed on Jan 7 AMD closed on 1/7 at 132.00 If AMD breaks below 130.77 = consider bearish trades If AMD breaks above 136.34 = consider bullish trades
NASDAQ:AMDLong
by OccamsPhazer
$WMT Bearish FOMC Setup 1/6/2022$WMT had a parabolic run up on 1/4/2022 with little to no consolidation. Elevator up means elevator down. It is also about to break back into the triangle trend it was forming. Also Dec 16-17 $WMT fell almost $8 and can also be considered a gap fill for $WMT coming back into trend, as shown by the green boxes. This play is puts under 143.60 (risky) or 143.00 (safe) for confirmation of downtrend break. Sell would be when $WMT touches support lines with only runners after that. $SPY confirmation is encouraged but not necessary because $WMT tends to move on its own.
NYSE:WMTShort
by BroccoliGiraffe