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WKHS The horse that works extra hard does all the workInteresting trend alignment on WKHS that has a possible drop really low which could spring the price, there is also potential for a confirmation due to a short increase in price which could theoretically do the same. The better climb for the price would be to DROP first to .4999 and then rocket upwards, however, there is a chance, that .8 takes the price to 1.2 which then sees the big drop to .4999, which leaves with the final chance of the $7 jump going .4999. It seems this .4999 is the move that springs the price upwards of $30, otherwise I wouldn't be as hopeful. It should happen fast, and retracements should happen fast. Good luck! Line on chart is more of an estimate or guideline, instead follow the price targets and trends. Here's an analysis of the chart for Workhorse Group, Inc. (WKHS): Timeframe: Daily Chart: This chart shows daily price movements from late 2022 to the present, around November 2024. Price Movement: Initial Decline: From late 2022 into early 2023, there was a significant decline in the stock price, dropping from above $30 to below $2. Consolidation: Post-decline, the stock entered a consolidation phase, trading sideways with minor fluctuations around $2 to $4 from mid-2023 to early 2024. Recent Surge: There's a notable sharp increase in the stock price towards the end of 2024, rising significantly from around $1.20 to over $30. Technical Indicators: Moving Averages: 200-day Moving Average: The stock price has been below this moving average for most of the period, indicating a long-term bearish trend. However, the recent surge has pushed the price above this average, suggesting a potential shift to bullish sentiment. Support/Resistance: Support: Around $1.20, where the price bounced back before the surge. Resistance: Previous highs around $30 could act as psychological resistance, but the recent break above this level suggests strong bullish momentum. Volume: Volume Spike: There's a noticeable increase in volume during the recent price surge, indicating strong buying interest. Chart Patterns: Inverse Head and Shoulders: Towards the end of the chart, there's a formation that resembles an inverse head and shoulders pattern, which is typically a bullish reversal pattern. Neckline: The breakout above the neckline around $1.20 confirms this pattern, projecting a potential rise to around $30, which the stock has already achieved. Fibonacci Retracement: Not explicitly shown, but if drawn from the peak to the trough before the surge: 61.8% Retracement: Around $18.90, which could be a potential target or resistance level. Analysis: Trend Reversal: The recent surge indicates a strong reversal of the downtrend that dominated from late 2022 to early 2024. This could be due to positive news, earnings, or market sentiment. Momentum: The stock has significant upward momentum, but after such a rapid increase, it might face profit-taking or consolidation at these levels. Risks: Given the rapid rise, there's a risk of a pullback or correction. If the price fails to hold above the previous resistance at $30, it could see a sharp decline. Conclusion: Bullish Outlook: The chart suggests strong bullish momentum with potential for further gains if the current sentiment holds. However, caution is advised due to the possibility of a pullback after such a steep rise. Entry Points: For those looking to enter, waiting for a pullback to test support around $20-$25 or using options for less risky exposure might be wise. Stop Loss: For traders, setting a stop loss below the recent breakout level around $1.20 or the 50% retracement level could manage risk. Remember, while technical analysis provides insights, fundamental analysis and understanding the company's news, earnings, and market conditions are crucial for making informed trading decisions.
NASDAQ:WKHSLong
by nicktussing77
Options Indicator Explained - so you can SEE what you tradeEver since we created this indicator back around 2020 on the TradingView platform it is so far the best platform for our analysis, research, coding, and development of different trading tools. This was 4 years ago, but we have been with TradingView almost for a decade ! The whole concept of this indicator came when a long time ago we read the big big book of options, and could not understand how come the stock price moved up but our calls are losing money ! Yes, we have been there too. And then came this indicator to life. We don't make a trade without it ever since. If you saw the video, you clearly know why. Let's delve into some key concepts that can elevate your trading game: ### 1. Visualizing Profit and Loss One of the most powerful tools in an options trader's arsenal is the ability to plot profit and loss lines on a chart. This visualization helps you understand the time decay of the options you buy or sell. By seeing how your potential profits or losses change over time, you can make more informed decisions about when to enter or exit trades. ### 2. Moving Beyond the Greeks The Greeks—Delta, Gamma, Theta, and Vega—are often emphasized in options trading, but their standalone value can be limited. What truly matters is how these metrics impact your profit and loss curvature. Think of it like driving a car: while an acceleration meter provides some information, what you really need is the speedometer and a clear view of the road. Focusing on the profit and loss curves allows you to grasp the real impact of these factors on your trades. ### 3. Identifying Pivot Points By observing profit and loss lines, you gain insights into optimal entry and exit points. Placing trades at pivot points can enhance your reward-to-risk ratios. Certain options offer generous room for stop-loss placement and quick profits if you choose pivot points where price rejections are likely. Seeing these lines helps confirm that your trading idea has a high probability of success. ### 4. Conducting Volatility Simulations Professional volatility testing with your indicator is crucial. It allows you to anticipate how changes in volatility will affect your options' profit and loss. Each case is unique and dependent on the underlying stock, so it's vital to have contingency plans and avoid trading blindly. You must always take into account that the volatility can drop or rise against you, and you need to see that even if it happens, you will still be okay, and not be a dreamer. Reality is everything, trade realistically. ### 5. Timing Your Trades Boost your performance by understanding how much profit you can lose (when buying options) or gain (when selling options) over the duration of your trade. This knowledge helps you make better timing decisions and manage your trades more effectively while you are inside the trade. In some trades you can clearly see that you just don't have the time to survive a correction and then wait for the next pulse wave to come and save you, you can see clearly that it is better to take profit today, since you just do not have enough time for a correction and a bounce back to the current profitable price. In options, what it is profitable today is NOT profitable tomorrow. I show you this in the video. ### 6. Simplifying with Profit Lines You don't need to rely heavily on the Greeks anymore. Profit lines already account for these metrics, freeing your mind to focus on price action. This approach eliminates the confusion often associated with the non-linear behavior of options, rooted in complex models like Black-Scholes. ### 7. The Black-Scholes Model and Implied Volatility Understanding the Black-Scholes model and implied volatility is fundamental. These concepts help you grasp how options are priced and how market conditions can impact their value. Using the indicator, you don't need even to know who or what is the Black-Scholes Model, since it does all the work and heavy lifting for you, by plotting you exactly what you truly need... Where you make a profit, where you will make a loss, and how much (profit lines). ### 8. In the Money vs. Out of the Money Knowing the difference between "in the money" and "out of the money" options is crucial. In-the-money options have intrinsic value, while out-of-the-money options are more speculative and rely on price movements to become profitable. ### 9. Short-Term vs. Long-Term Options Short-term call options offer quick potential gains but come with higher risks due to time decay. Long-term call options, on the other hand, provide more time for your trade to work out, reducing the impact of time decay but often requiring a larger capital investment. I show a clear example in the video. ### 10. Maintaining Reward-to-Risk Ratios You should make sure you always maintain the reward-to-risk ratios in your favor BEFORE you enter the trade, this is what keeps you in the game and makes you thrive and not just survive. Do you think they let a pilot to land an airplane, just with his "gut feeling" or do they give them an indicator to SEE the runway? If you don't see your profit and loss lines, you don't see the runway when you land your plane. We've all seen those wallstreetbets BLIND crash landings in options and know how they end before they started. This can and should be avoided, always know your risk, and your potential reward. ### 11. Proof of Accuracy Finally, reliable indicators provide proof of accuracy, showing you the same profit or loss you'd experience given stock movements and implied volatility changes. This consistency gives you confidence in your trades, eliminating confusion and preventing unexpected losses. In the end of the video, there is proof of the accuracy, that the indicator in did shows you the same profit or loss you will have in the position, given the stock movement and implied volatility changes, so you can rest assured that your landing indicator will not surprise you no matter the weather, you will have full control on your options trade. No more the feeling of confusion and then your fast profit crushes to zero or even a loss and you don't know why. Master these concepts, and you'll have a robust framework for navigating the complexities of options trading with precision and confidence.
NASDAQ:TSLAEducation
by ZoharCho
Rivian Crosses $15: Can it Reach the $18.86 High?Rivian showed a strong rebound after forming a higher low at $13.23, violating the previous peak of $15.00 during yesterday’s session. A confirmed breakout above the critical resistance at $15.00 by sustained trading above $15.00 in today’s session will confirm the current uptrend, triggering further rises near 15.85 - 16.45 - 17.05 - 17.56 - 18.86 in the short-term. The stop-loss lies below 13.23$. the indicators are heading toward the positive side, which confirms the mentioned positive scenario. The information and publications are not intended to be or constitute any financial, investment, commercial, or other types of advice or recommendations provided.
NASDAQ:RIVNLong
by Gehad_Abouelela
4
The #1 Reason The Market Crashed It's almost impossible to believe this Market crash! But it's Happening I remember Reading a newsletter by a trading veteran. And he kept comparing the price of NASDAQ:NVDA To the late 2000's stock market bubble And he kept commenting on how this bubble will end. The stock market had a flash crash ⬇️ And this is a signal that the A.I. Boom Is over. Now does this mean that the A.I. technology has no use? Not at all.It just means where are in a 🐻 bear market. And this market may last for the next 6months. Also this gives me a chance to share the 🚀 Rocket booster strategy. Look at this Chart NASDAQ:AMD It has 3 Steps: == #1-The price has to be below the 50 EMA #2-The price has to be below the 200 EMA #3-The price has to gap down == Now that last step is the key to this strategy the "gap" is basically price action. To learn more about price action please study about candlestick patterns This will give you a boost to understanding your entry and exits Disclaimer ⚠️ Trading is risky please learn risk management and profit taking strategies because you will lose money wether you like it or not. Also use a simulation trading account before you use real money
NASDAQ:AMDShort
by lubosi
Exxon Mobil corp setting for a bigger correctionHello, Exxon Mobil Corp engages in the exploration, development, and distribution of oil, gas, and petroleum products. It operates through the following segments: Upstream, Downstream and Chemical. The Upstream segment produces crude oil and natural gas. TECHNICAL ANALYSIS- Checklist Structure drawing (Trend line drawing on past price chart data)- As shown below Patterns identification (Naming patterns on past price chart data for future wave)- The price is a corrective pattern. Expanding triangle Future indication (Reading indicator for future wave)- 0 crossover on MACD. Breakout on the corrective wave could confirm further upside Future wave (Drawing on future price chart using future indication from indicator)- As shown Future reversal point (Identifying trend reversal point on price chart using structure)- Target price $126 for exit (no buy opportunity from current price) Next earnings report date: Jan 31st 2025 Market capitalization: 528.77 Billion ExxonMobil financial performance for the first nine months of 2024: Total Revenue and other income at 266.159 billion nine months ended 30th September 2024 Year-to-date earnings were $26.1 billion versus $28.4 billion in the same period last year Net Income including non-controlling interests at $27.1 Billion, a decrease of $2.2 billion from the prior year period. Cash and cash equivalents $26.9 billion versus $31.5 Billion in the same period last year Total liabilities at 185.5 billion versus $163.8Billion in the same period last year ExxonMobil plans to continue its strategic focus on high-return projects and operational efficiencies, with an anticipated investment level of approximately $28 billion in 2024. The company aims to advance its low carbon business plans, including carbon capture, biofuel production, and other emission reduction initiatives. Acquisition of Pioneer Natural Resources: Completed on May 3, 2024, this acquisition is expected to bolster upstream production capabilities, particularly in the Permian Basin. www.tradingview.com Challenges and Risks Market Risks: Price fluctuations in crude oil and natural gas, industry refining margins, and chemical margins. Operational Risks: Integration of the Pioneer acquisition, volume growth and production challenges, and higher expenses from increased depreciation and maintenance activities. Regulatory Risks: Tax-related items, government mandates, and changes in sustainable production levels due to government-imposed production limits or sanctions. Emerging Risks: Supply chain disruptions, environmental regulations, and future policies and technological advancements related to emissions reduction and sustainability. Management’s Strategies: Focus on strategic projects and high-value products, structural cost savings, and prioritizing investments in high-return projects while maintaining a strong balance sheet and consistent shareholder returns. Our Recommendation Exxon Mobil remains fundamentally strong with a robust balance sheet, but its stock appears overstretched, presenting some risk. The company’s stock has been trading in a sideways range since February 2023 to date. In October 2024, the company traded at a 52-week high of 126.34, a gain of over 30% just in the year 2024. While a Trump presidency could influence the oil industry, fluctuations in oil prices typically have a more significant impact on oil company stocks. Recently ExxonMobil CEO Darren Woods was quoted to saying “I don’t think the level of production in the U.S. is being constrained by external restrictions,”. He added: “I’m not sure how ‘drill, baby, drill’ translates into policy.” Given the current price of $120.31, we do not see an immediate buying opportunity. Instead, we recommend exiting around the all-time high of $126.34, as a larger correction in the stock seems likely. President-elect Donald Trump said that oil and gas industry executive Chris Wright would be his pick to lead the Department of Energy. Wright is the founder and CEO of Liberty Energy. He is a defender of fossil fuel use and is expected to support Trump's plan to maximize production of oil and gas. Good luck & best of luck.
NYSE:XOM
by thesharkke
6
GME Update with my Strategy Code —- > THIS IS NOT A FINANCIAL ADVICES <—— Hi everyone, in the past months I have just finished my strategy code and now I do some testing with a great trading tool ( Trading View ). The strategy until today did not give the signal to sell in GME, in fact and seams this stock going to the moon. We can see from the graph there is a high volume between 20$-30$ with high high resistance in 31$ like what we saw last night the drop from 31$ to 28$, let us see in the coming weeks maybe days… Thank you
NYSE:GMELong
by sharbi68790
LPG - Dec 24 100SMA StrongWeak Bounce Opening h1 candle closed wish strong bullish rejection. Entered trade within Stdev Sector: Chemical Transport and Products Revenue has be dropping Q/Q but QoQ it has increased. This is similar to the EPS Short Interest: 4.34% ADR 3.05% Does it respect the H1 100SMA (Min 3Months): Yes Is it a Hype Thematic (AI, Solar): No but this is a cyclical sector. I noticed a number of other shipping companies are facing similar bearishness. So this softness might be part of the cyclical phase. Also with potential increase in tariffs with China, there should be some expected slow down in demand. China has also focused on removing external reliance and that is also bad for tankers. - 11 Nov seekingalpha.com 100SMA StrongWeak Bounce 🏀 (0.5R) v1.0 Trading risk at 0.5R as we are testing this strategy This trade model is based on us riding the 100SMA trend waves of the strongest and weakest companies. It only executes well when greater force (RUT & SPX) is trending. Entries are at greater force key levels when it is consolidating. When greater force is taking off it is too late. Entry Within Stdev 100 zone SL = ATR14 * 2 (Run full course no early exits) Trailing stop (Previous Day Low or high) Price launch off (D1) D2 Closes D3 Move SL to D2 Low
NYSE:LPGShort
by Ronin_trader
ASPN - Dec 24 100SMA StrongWeak BounceASPN Premarket entry to capture price as it is within our Stdev range and we can be ahead of the crowd as we expect the greater force (RUT) to continue dropping Sector: Energy Insulation, EV Short Interest: 11.29% ADR 6.38% Does it respect the H1 100SMA (Min 3Months): Yes Stagnent Revenue, negative EPS Insider filings see the CEO selling around $30 the peak before the fall in Oct 24. Price has dropped 60% since then. Is it a Hype Thematic (AI, Solar): EV and Energy, there is a bearish sentiment on EV demand. If Trump does remove the EV subsidies for consumers, there should be a larger fall in demand. 100SMA StrongWeak Bounce 🏀 (0.5R) v1.0 Trading risk at 0.5R as we are testing this strategy This trade model is based on us riding the 100SMA trend waves of the strongest and weakest companies. It only executes well when greater force (RUT & SPX) is trending. Entries are at greater force key levels when it is consolidating. When greater force is taking off it is too late. Entry Within Stdev 100 zone SL = ATR14 * 2 (Run full course no early exits) Trailing stop (Previous Day Low or high) Price launch off (D1) D2 Closes D3 Move SL to D2 Low
NYSE:ASPNShort
by Ronin_trader
TSLA Cont. Bull Run after Market Downturn Today? for Dec. 19Tesla experienced a significant decline during today’s trading session, aligning with broader market weakness. This sharp drop follows a recent bullish rally, prompting key questions regarding whether the stock is consolidating, forming a reversal, or preparing for another leg higher. Market Structure Analysis: Tesla has been in a strong uptrend for several weeks, recently reaching a high of $488. However, today’s action suggests a possible break in momentum, with the price closing below $450. The intraday sell-off has brought TSLA closer to key support zones, with a significant volume spike signaling heightened activity from institutional traders. Supply and Demand Zones: * Supply Zone: $467 - $488 (overhead resistance, marked by recent highs and profit-taking areas). * Demand Zone: $420 - $429 (critical support from the last consolidation zone in late November). Order Blocks and Support/Resistance Levels: * Key Resistance Levels: * $452: Near-term resistance where sellers became active today. * $467: Intermediate resistance from prior week’s breakout level. * Key Support Levels: * $442: Immediate support tested during the day. * $429: Lower support, coinciding with today’s intraday low and significant buying interest. Key Indicators: * EMA (9/21): * The 9 EMA has crossed below the 21 EMA on the hourly chart, indicating a bearish shift in momentum. * MACD: * Bearish crossover with increasing histogram bars below the zero line. * This suggests accelerating downside momentum. * RSI: * Dropping below 40 on the hourly timeframe, signaling oversold conditions but room for further downside. Options Flow and Gamma Exposure (GEX): * Call Walls: $480 and $500 (significant resistance levels based on options activity). * Put Walls: $430 and $420 (high open interest for puts, likely providing temporary support). * GEX: Gamma levels indicate that market makers may sell into rallies, adding downward pressure. Scalping vs. Swing Outlook: * Scalping: * Focus on intraday levels such as $442 for potential quick rebounds, targeting $450-$452 resistance. Set a tight stop-loss below $440. * Swing Trading: * Watch for a decisive break below $429 for confirmation of a deeper pullback. Alternatively, a reclaim of $452 could trigger a move back toward $467. Actionable Suggestions: * Bearish Setup: * Entry: Below $429 * Target: $420 * Stop-Loss: Above $435 * Bullish Setup: * Entry: Above $452 * Target: $467 * Stop-Loss: Below $445 Conclusion: Tesla’s recent sell-off has brought the stock into critical support zones, offering opportunities for both bears and bulls. However, caution is warranted given broader market volatility and bearish technical signals. Traders should monitor key levels and volume to confirm the next move. Disclaimer: This analysis is for educational purposes only and does not constitute financial advice. Always do your own research and trade responsibly.
NASDAQ:TSLA
by BullBearInsights
5
AAPL Technical Analysis after Today Downturn - Dec. 19Apple (AAPL) experienced a sharp decline today, reflecting broader market volatility and potential profit-taking from recent highs. This analysis explores the technical outlook to assess possible reversal points, continuation patterns, and actionable trade setups. Market Structure Analysis * Daily Timeframe: AAPL broke out of its ascending channel but sharply pulled back to re-test support levels around $247. This indicates a failed breakout scenario with bearish momentum dominating. * Hourly Timeframe: The pullback from $254 to $247 aligns with increased selling volume, signaling strong short-term bearish sentiment. Supply and Demand Zones * Key Demand Zone: $244–$247 – A high-confluence support area where buyers may step in. * Key Supply Zone: $252–$254 – Prior resistance where sellers are likely to defend aggressively. Order Blocks and Support/Resistance Levels * Immediate Resistance: $250.79 – Intraday recovery may face challenges at this level. * Immediate Support: $245 – A breakdown below could signal further downside to $242.50 or $240. * Key Fibonacci Retracement Levels: * 50% Retracement: $246.50 * 61.8% Retracement: $244 Key Indicators * 9/21 EMA Crossover: Bearish crossover indicates potential continuation of downward momentum. * MACD: Shows strong bearish divergence, with the histogram widening in the negative territory. * RSI: Approaching oversold conditions, suggesting a potential bounce if $244 holds. Options Flow and Gamma Exposure (GEX) * Call Wall: $255 – Indicates strong resistance; unlikely to break without significant bullish momentum. * Put Wall: $247.50 – A key gamma support level; a breakdown below could accelerate bearish moves. * IVR/IVx: Elevated implied volatility suggests market participants expect significant price swings. Scalping vs Swing Outlook * Scalping: * Entry (Long): Near $245 with a tight stop-loss at $243. * Entry (Short): Near $250.50 if rejected, targeting $247 with a stop-loss at $252. * Swing Trading: * Bearish Play: Break below $244, targeting $240 with a stop-loss at $247. * Bullish Play: Reclaim $250, targeting $254 with a stop-loss at $247. Actionable Suggestions 1. For Short-Term Traders: * Monitor the $247 support level for possible intraday bounces. * Short positions can be considered below $244 with proper risk management. 2. For Swing Traders: * Wait for a clear breakout above $252 for bullish confirmation. * A sustained close below $244 opens room for a bearish continuation to $240 or lower. Conclusion AAPL faces critical support at $244–$247. While oversold conditions may prompt a short-term bounce, the bearish momentum suggests cautious optimism for bullish setups. Traders should monitor volume at key levels and utilize tight stop-losses to manage risk effectively. Disclaimer This analysis is for educational purposes only and does not constitute financial advice. Always do your own research and trade responsibly.
NASDAQ:AAPL
by BullBearInsights
Technical Analysis for AMZN with GEX - Dec. 18, 2024With the broader market experiencing significant declines, Amazon (AMZN) has been no exception. Today’s drop marks a critical juncture for the stock, with implications for both short-term traders and long-term investors. Let’s dive into the technicals to uncover potential opportunities and risks. Market Structure Analysis: * Trend: AMZN broke below its ascending channel, confirming bearish momentum. * Volume: A significant spike in sell volume indicates strong bearish sentiment. * Sentiment: Current price action reflects uncertainty, with the market awaiting stability post-FOMC statements. Supply and Demand Zones: * Supply Zone: $227.50 – $230.00 * Demand Zone: $212.00 – $215.00 * AMZN has tested the $220.00 level, which coincides with a critical demand zone. Failure to hold here could lead to further downside. Order Blocks and Support/Resistance: * Key Resistance Levels: * $225.00 (near-term resistance) * $230.00 (major supply zone) * Key Support Levels: * $217.50 (recent low and demand level) * $212.00 (strong support, aligns with prior consolidation zones) * $200.00 (psychological level) Key Indicators: * EMA (9/21): The 9 EMA ($224.00) has crossed below the 21 EMA ($227.00), signaling bearish momentum. * MACD: Bearish crossover with momentum accelerating to the downside. * RSI: At 35, indicating the stock is approaching oversold territory. Options Flow and Gamma Exposure (GEX): * Call Walls: Significant resistance at $230.00 and $235.00. * Put Walls: Strong support at $220.00 and $212.00. * IVR (Implied Volatility Rank): 32.5, indicating moderately elevated volatility. * GEX Insights: * Negative gamma suggests potential for larger price swings. * Put dominance indicates bearish sentiment. Scalping vs Swing Outlook: * Scalping: * Focus on quick trades between $217.50 (support) and $225.00 (resistance). * Use tight stops below $217.00 for risk management. * Swing Trading: * Potential entry at $212.00 with a stop-loss at $209.00 and targets at $225.00 and $230.00. * If the $220.00 level holds, monitor for bullish reversals. Actionable Suggestions: 1. Short-term bearish play: * Entry: Below $220.00 * Target: $215.00 * Stop-loss: $222.00 2. Bounce trade from support: * Entry: $212.00 * Target: $225.00 * Stop-loss: $209.00 3. Breakout above resistance: * Entry: Above $230.00 * Target: $235.00 * Stop-loss: $227.00 Conclusion: Amazon is at a critical juncture as it battles strong bearish sentiment. Key levels at $220.00 and $212.00 will determine the next directional move. Traders should remain cautious and use tight risk management in these volatile conditions. Disclaimer: This analysis is for educational purposes only and does not constitute financial advice. Always do your own research and trade responsibly.
NASDAQ:AMZN
by BullBearInsights
How to PROTECT your profits while letting them runIn the trading business you need to let your profits run while also managing your risks that means to cut your losses short. Losses of unrealized profits are real profits that are lost. What if you could save them? Well, there is a way... It is not always available but it is one you want to know since if you can save 3 points of wiggle room and pay 1 point or less, over the long run it adds up to HUGE chunk of profit to your bottom line. The reason I applied this method is because TSLA was doing 3 days in a row a push and gap up, so it seems likely people will want to take profits... but this is TSLA... it can shoot up above 500 and reach who knows where... (she did it before...). So I want to TAKE MY HUGE profit, while giving it the option to continue to the moon, if it will want to do so... You can never take the very top anyway, so if you "give back" 1 point of profit it is considered reasonable, but if in case the price falls down sharply or gapped down I can give back maybe 3 points with this strength of volatility, which is undesireable. So what I did? I sold the PUT option at strike 470 at a price of $15 (my point was $17) so for me it is even less than a point so it is very attractive deal to me... Then... if the price had crushed down it meant for me that I sold my stocks at a price of 470 while paying the hedge cost of the PUT option of 15 so it is equivalent to me that I sold my stock at a price of 455, which is ALMOST the top. Making sure ~90% of the profit stays in my pocket. So I WIN. If the price would continue to shoot up, then I making SUPER HUGE MONEY, while sleeping like a baby, that I already realized my HUGE profit. So I WIN. So either way, I WIN ! Since the price did not crushed the next day and hold, and my stop loss advanced, so there was no longer need to my PUT option hedge since if price will fall I will get out with the stop loss with the same profit. So I sold the PUT hedge for a small loss, so the hedge cost me 0.25 a point overall. SUPER WORTH IT ! FYI, this comes from years of experience, but I give you some of my experience, you could do it too. The moral of the story... when you have HUGE profit, and you feel itchy to take profit, don't ! and try to hedge yourself with options ! this way, if you were wrong and you have GME, AMC on your hand, you don't let them go, and you WIN either way ! Sleeping like a baby.
NASDAQ:TSLAEducation
by ZoharCho
2