Get started

Option

How to use call option buy or sell indicatorHello Traders, Exciting news! We've just released a detailed video guide on how to harness the full potential of Chobotaru Brothers Option Indicators. In this short tutorial, we cover everything you need to know to use the indicator, specifically focusing on out-of-the-money call options. Here's what you'll discover in the video: 1. Adding the Indicator to Your Chart: Learn the simple steps to seamlessly integrate Chobotaru Brothers Option Indicator into your trading view for a clear and concise analysis. 2. Finding Option Parameters: Navigate through your broker's option chain on platforms such as Interactive Brokers to locate all the essential parameters needed for effective trading decisions. 3. SEE the Lines of Profit: Gain a deep understanding of the meaning behind each line of profit displayed by the indicator, empowering you to make informed choices based on market movements. 4. Utilizing Lower Timeframes (Example of 5m and 30m): Explore the versatility of Chobotaru Brothers Option Indicator by discovering how it can be effectively applied to lower timeframes like 5 minutes and 30 minutes. 5. LIVE Example: Out-of-the-Money Call Option: Follow along with our real-time example using an out-of-the-money call option, providing practical insights into how EASY is the indicator's functionality and application in a live trading scenario. We've designed this tutorial to be beginner-friendly, ensuring that traders of all levels can seamlessly integrate Chobotaru Brothers Option Indicators into their trading arsenal. Watch the video, enhance your trading skills, and unlock the potential for greater success in the options market. If you find the video helpful, don't forget to like, follow, and share it with your fellow traders. Happy trading, and may your profits soar! Best regards, Chobotaru Brothers
NASDAQ:NVDAEducation
by ZoharCho
📊 Earnings Edge: Diagonal Debit Dynamics - #2 Trade in 20242024 Trading Challenge Entry #2: Diary of an Option Trader 💡 Trade Overview: I noticed LLY soaring on the TradingView stock heatmap today. Observing the monthly chart of AMEX:XLE (healthcare sector), it has been mostly sideways for years. However, in the past two days, NYSE:LLY has demonstrated strong bullish movement with increasing volume, indicating a potential uptrend. I strategized to profit from a possible breakout or continued trend within an ascending triangle pattern. 📊 Option Strategy choice: Given the high IVR of 42 and an upcoming earnings report on February 6th before market, I anticipate further price rise. I pondered various strategies: Single leg call: Not preferable due to increasing breakeven with time. Naked put/credit vertical spread: Not ideal close to earnings, expecting IVR increase. OTM calendar: Avoided due to back month’s illiquidity. ATM calendar: Lower upper breakeven point was a concern. Noticing that IV was higher for the front-month compared to the back-month, likely due to the nearing earnings, I decided a diagonal put debit strategy was ideal to allow significant upside potential while benefiting from minor retracements as time progresses and speculating on an IVR increase. 📊 Diagonal put debit Position Legs: Chosen structure and execution details: Buy LLY Mar 15, 2024, 600.00 PUT at 27.48 (Quantity: 1) Sell LLY Feb 16, 2024, 610.00 PUT at 26.57 (Quantity: 1) Trade Details & Key Metrics: Symbol : LLY Date/Time : 2024-01-03 15:00 POP : 54% Required Buying Power ( Req.BP ): $1090 IVR : 44 Price : buying for $0.91 debit Front month leg : February 16 @610 x 1 PUT Back month leg : March 15 @600 x -1 PUT 📈 My Risk Tolerance: For the 2024 trading challenge (goal: FWB:12K to $30k), I’m limiting floating losses to 1.5% per position, thus not tolerating more than a $175 loss. This threshold is approximately around a 590 strike price. While I’m comfortable with a considerable upside range, the upper breakeven at front month expiration is around a 711 strike, increasing to 760 at 21 DTE. 🎯 My Profit Target: I’m aiming for about 2x the allowed loss, approximately around $300, but will consider taking profits if the price approaches the optimal equity curve point near a 650 strike. Realizing profits is always the more gratifying part of trading! ANYWAY: HIT THE 🚀 BUTTON ABOVE! This trade is part of my 2024 option trading challenge , where I aim to turn a 12k account above $30K 💰 (details in signature and my profile page) .
NYSE:LLYLong
by TanukiTrade
PTON Peloton Interactive Options Ahead of EarningsAnalyzing the options chain and the chart patterns of PTON Peloton Interactive prior to the earnings report this week, I would consider purchasing the 8usd strike price Calls with an expiration date of 2025-1-17, for a premium of approximately $1.45. If these options prove to be profitable prior to the earnings release, I would sell at least half of them. PTON might be a buyout this year. From one of these giants: AAPL, AMZN or NKE!
NASDAQ:PTONLong
by TopgOptions
💡 $357 profit with 72% PoP STRANGLE - #1 trade in my challangeTrade Overview: Initiated my first options trade for the annual challenge on January 2nd with an IWM strangle. Observing high IVR in the index, I capitalized on the recent VIX spike to enter the 45DTE 212/188 strangle for 3.57cr. Trade Management: Rolling Strategy: Will roll legs as needed before expiration if price diverges. Loss Management: With a FWB:12K account, I'm capping floating loss at $200. Closing Strategy: Targeting to close around 21DTE. Trade Details: Symbol: IWM Option Type: Strangle 45DTE Entry Date: January 2, 2024 Entry Price: 3.57cr Required BP: $1681 Max Profit: $357 (20% of capital) PoP: 72% Positions: IWM Feb 16, 2024 212.00 CALL - Sell | Price: 1.76 | Qty: 1 | R. PnL: 0 | Commission: 1.251 | Fees: 0 IWM Feb 16, 2024 188.00 PUT - Sell | Price: 1.81 | Qty: 1 | R. PnL: 0 | Commission: 1.2511 | Fees: 0 Key Metrics: Tasty IVR: 42 (High) Breakevens: 184/215
AMEX:IWM
by TanukiTrade