Option
VIX - Attention Options TradersIf you trade options like me, then you will take a very close look at the VIX.
So here we are, at the Lower Medianline Paralle of the black downsloping Fork.
What does this mean?
It means, that the VIX has pulled back to equlibrium - to a energy zone of equal, where all is possible again.
Most of the time we can see price turns at the L-MLH in the opposite direction, since the energy (price) is
now at a stage of the opposite extreme, and/or at the center of the upcomming other extreme...
...can follow? ;-)
No problem if you can't. All what it means is, that we Option Sellers are probably looking for strategies, where
we more then not use strategies to buy, instead of selling options. For example some RiskReversals etc.
Let's see how this unfolds in the upcomming days and weeks.
P!
AAPL continuation patternMy last post on AAPL, I called the washout when they released bad news about a weak demand in Iphones, here we have consolidated on our trendline. This is a bear flag continuation pattern, that had a confirmed breakout into the close here and with strong selling volume. Im short right now and hope to see it take down the low (green line). Get short n place a tight stop loss, the risk reward is ridiculous.
Microsoft-Santa is coming! ho ho hoTarget = $49
Keep buying front-month PUT at 0.01 each ( See OptionsProfitCalculator: opcalc.com )
$10 dollars, controlling 10,000 shares.
Max returns of $10k if it gets to $49. Your downside is only $10!
OR naked short
any option above $55 (Since there are lots of premium in MSFT options anyway)
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See the easy money now?
Option IncomeOptions are a fantastic tool to create the weekly and/or monthly income that we need to support our lifestyle. Selling options is selling a financial insurance product. As the seller we are also the underwriter of the policy. When selling an option contract only one of two possible outcomes can happen...either you will get assigned the underlying asset at the strike price (coverage policy) or you will not. Either way you keep the premium income as profit.
In this way we can sell a put option to acquire the asset with the intent of getting assigned and then we can sell a call option at an acceptable profit target.
Always be selling!
The weekly income trade can be found at tetrapro.wordpress.com
A picture is worth a thousand words....
Please trade responsibly.
Option IncomeOptions are a fantastic tool to create the weekly and/or monthly income that we need to support our lifestyle. Selling options is selling a financial insurance product. As the seller we are also the underwriter of the policy. When selling an option contract only one of two possible outcomes can happen...either you will get assigned the underlying asset at the strike price (coverage policy) or you will not. Either way you keep the premium income as profit.
In this way we can sell a put option to acquire the asset with the intent of getting assigned and then we can sell a call option at an acceptable profit target.
Always be selling!
The weekly income trade can be found at tetrapro.wordpress.com
A picture is worth a thousand words....
Please trade responsibly.
Option IncomeSelling options for income is one of the best conservative ways to increase returns. When I sell an option contract, I am selling a financial insurance product to the market. I am acting as the underwriter of the policy. For this particular market, I am selling the policy with the coverage at a strong support level. Please keep in mind that this market is based off of the fear index or the VIX. There will always be some level of uncertainty in the market. For this reason I sell put options for income. In the event that we get assigned, we have an asset set to be elevated with the uncertainty of the S&P500 index. Furthermore, once we get the underlying asset we can simply sell a call option at some acceptable profit target and continue to generate consistent weekly and monthly cash flow.
A picture is worth a thousand words...
Please trade responsibly.