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VZ Verizon Communications Options Ahead of EarningsIf you haven`t sold VZ here: Then analyzing the options chain and chart patterns of VZ Verizon Communications prior to the earnings report this week, I would consider purchasing the 31usd strike price Puts with an expiration date of 2024-1-19, for a premium of approximately $1.08. If these options prove to be profitable prior to the earnings release, I would sell at least half of them. Looking forward to read your opinion about it.
NYSE:VZShort
by TopgOptions
GLD is the high volume EFT that is tracking the gold bullrun which started two weeks ago on July 3rd after a downtrend for two months starting on May 2nd. This is not a leveraged ETF as so a bit less volatile than JNUG or GDXU. On the 2H chart, I have added a VWAP band line setup anchored into the pivot high. On my analysis: 1. GLD is ascending through VWAP band lines in a VWAP breakout. 2. Volume is steady 3. The Price Volume Trend Oscillator went from a diminishing negative/red histogram into green on July 5th. 4. On the zero-lag MACD, the lines crossed while under the histogram reversing a descent on July 17th and marking the end of a minor correction of the uptrend then confirmed by those lines crossing the zero-line the following day. I conclude that GLD is set up for a long trade. While others might simply take a trade of stocks I will use call options to take a long position. My target is $190 between the second and third positive standard deviations of the mean VWAP. I will purchase 50 options contracts for about $37 each expiring August 4th. I will hold all of them until July 27th and liquidate half of them at the high of day on that Thursday expecting Friday to be a down day. The remaining 25 contracts will be sold at the rate of 6 contracts per day until the overall position is closed. Overall, I expect to realize 200% in profits over the 12-13 trading days in the trade. I plan for a 15% stop loss and expect the trade to be above break-even with the first stop loss advance which I expect will be on Friday.
AMEX:GLDLong
by AwesomeAvani
Current state of play for BTCCurrent state of play for BTC Bitcoin, and the crypto markets overall, have seen a marked strike of volatility which resulted in a new yearly high being made of $31,5000 USD before price then fell away back down to $30,250 USD at the time of writing. What can we gain from this price action? The simple fact that there have been more supply and sellers at these price highs than there has been conviction to continue biding at higher prices. ---- What else could be moving markets overnight? A key metric that may be driving some of this volatility is the options market. The 7th of July is also the largest total value of options expiring until the 28th of July. metrics.deribit.com Option expiry is historically known to cause markets to move as these contracts are settled. Max pain for this contract date is also $30,000USD - so it will be interesting to see if price settles at price range after the contracts settle. (Click here to learn about max pain) ---- Where to next These are the bullish and bearish scenarios to be watching. A clean higher time frame (Hourly or greater) close beyond these range highs or lows will be telling in the bears or bulls are in control. Currently we are in the middle of it all.
by PHundal
GS Pre Earnings LONGGoldman Sachs pivoted from a low on July 11th into a trend up until July 14th during which it pulled back. Since earnings are on July 19th, I see room now for a pre-earnings long entry. The MTF RSI indicator shows the lower TF RSI in blue reflecting the pullback while the higher TF RSI in black shows the longer trend up with the RSI holding support at 50. The zero-lag MACD shows a line cross under a slightly positive histogram suggesting the pullback will reverse to continuation. Overall, I see GS as being suitable for long entries which I will take as call options. I will zoom into the 5 or 15 minute chart and look for a pivot low as the ideal entry. I will set a stop loss of 10% while taking one contract as a strike $330 expiring July 21st and another $330 expiring July 28th. I have picked targets based on the upper standard deviations of the VWAP bands anchored back to the pivot low on July 11th. Overall, I am expecting a 100% ROI on the two contracts.
NYSE:GSLong
by AwesomeAvani
NVDA - MyMI Option Plays - CallsNVDA has outperformed outperformance in it's definition. This Titan has broken into a higher price range channel (top level of the orange channels) and is showing the potential to be headed back to $500. The most recent breakout in this week's trading sessions shows that there is still money on the sideline waiting to be injected in the markets and that we have much higher to go. This has taken us bullish in all of our current open trades. We are not currently in NVDA but we are patiently awaiting a re-entry that's a little more favorable for a longer-term call option and share hold.
NASDAQ:NVDALong
by MyMIWallet
KO - a Warren Buffet Fav setup long from bottom of cycleKO as a long standing Buffet holding- is a slow mover with a decent dividend. For stock and options traders like myself, it is now well positioned for a long trade. KO's recent pivot highs were early to mid May with the highest trading volume at $64 according to the interval volume profile. KO descended mid-May into June 1st and then had a Fib. retracement and reversal. On the 4H chart, KO price is now at the bottom of the high volume area of the overall while the RSI / MTF ( Chris Moody) shows relative strengths in the range of 25. I see this as a classical opportunity to buy low and sell high. Trade specifics are a stop loss of 59.30 and targets based on anchored VWAP lines of 61 (25% off) 62.5 (50%) and 63.75 (25%). As a low-risk trade for the stop loss compared with the potential profit, I will devote 5 % of the account to this trade. Once price hits $60.25, I will raise the stop loss to the break-even price of the entry and the trade will become stress and risk free. I will select an entry buy focusing down onto the 5-15 minute time frame. Profits from a low risk trade like this will be re-deployed into others a bit riskier as a means of stratifying risk and its managment.
NYSE:KOLong
by AwesomeAvani
FrogAlgo: What is 0DTE Option?🔔 Trading zero-day-to-expiration (0DTE) options on AMEX:SPY has both positive and negative aspects. Let's explore them 🧵: Positive: ♻️ High Potential for Quick Profits: 0DTE options offer the opportunity for rapid gains if the underlying stock, in this case, AMEX:SPY , experiences a significant price move within a single trading session. ♻️ Reduced Time Decay: As the options approach expiration, their time value diminishes rapidly. This can work in favor of traders, as time decay accelerates, potentially increasing the profitability of the trade. ♻️ Flexibility: 0DTE options allow traders to capitalize on short-term price fluctuations in AMEX:SPY without committing to longer-term positions. This flexibility can be advantageous for those seeking quick, opportunistic trades. Negative: ♻️ High Risk: 0DTE options carry substantial risk due to their short expiration timeframe. The price of AMEX:SPY must move significantly and in the desired direction within the trading session for the trade to be profitable. Otherwise, the options could expire worthless, resulting in a complete loss of the investment. ♻️ Increased Sensitivity to Market Volatility: 0DTE options are highly sensitive to changes in market volatility. Rapid shifts in AMEX:SPY 's price can cause dramatic swings in the option's value, amplifying both gains and losses. ♻️ Limited Time for Adjustments: With 0DTE options, there is minimal time available to react and make adjustments if the trade goes against expectations. Traders must be prepared to act quickly and decisively. 🔔 It's crucial for traders to thoroughly understand these factors and assess their risk tolerance before engaging in 0DTE option trading on AMEX:SPY or any other underlying asset.
NYSE:BABA
by A1TradingHub
TSLA - MyMI Option Plays - PUTsI purchased some PUTs this morning as I expect TSLA to rebound back to at least the $268s or $264s for an excellent $12-$16 Puts Catch on the Drop. I am sharing this to track the trade! Stay tuned for updates and for more trades, be sure to follow! Thank you all for the support, our numbers have been pretty phenomenal and we want to show our appreciation by continuing to share our ideas with you all! Check your bio for links to get even more connected! Use our Financial Budgeting and Investment Manager to improve your trades and follow ours even closer! Thank you guys/gals!
NASDAQ:TSLAShort
by MyMIWallet
6
LI , a Chinese EV manufacturer LONGLI has seen a 60% price rise since significantly beating the earnings estimates of the analysts. LI competes with TSLA and NIO primarily in Chinese and perhaps a little in Scandinavia. It does not import to North America. The 2H chart shows price rising consistently in a channel between the first and second standard deviation lines above the mean anchored VWAP demonstrating trend persistence and momentum. The zero-lag MACD shows a line cross at the zero horizontal line and rising as confirmation of bullish momentum. I see $40 as a reasonable target at the level of the 3rd upper standard deviation lines. With the next earnings report due August 21st, I will take a long trade of ten call options striking $38.00 expiring 8/18/23. On the last trading day, this option had a low of $1.75 and a high of $1.90 for an intraday rise of about 8%. The contracts will cost about $1900. I am expecting about a 3% average rise compounded over 30 trading days or 250% return on the trade.
NASDAQ:LILong
by AwesomeAvani
TSLA Weekly Longterm LONGTSLA is here on the weekly chart. I have added a couple of anchored VWAPs and their standard deviations to the chart itself. The two indicators are the zerio-lag MACD which shows upgoing lines crossing the zero horizontal line and a positive histogram. The Price Volume Trend indicator shows a cross and consistent upgoing action since February 1, 2023. The chart itself shows price to have crossed over the two mean VWAPs 4 weeks ago which is confirm- atory for bullish momentum. TSLA pivoted up from the second deviation below the mean VWAPs about February 1st. My target is $360 the present level of the second deviation lines (red) above the mean VWAP confluent with the horizontal resistance zone of the highs from November 2022 January 2023 and April 2023 all a triple top of sorts. I am highly bullish on TSLA overall given its progress in autonomous driving, charging station station infrastructure, deal making with F GM and RIVN insofar as charging standards and cooperative ventures as well as obvious signs of growth with Cybertruck production, and new plants in Mexico and potentially Spain and India. I have purchased ten options striking $350 with a December 2023 expiration. I have call options expiring in August and September. I expect to roll them out for more than a year to minimize the tax treatment of expected significant profits.
NASDAQ:TSLALong
by AwesomeAvani
1
Unlocking the Potential of Option Trading: A Comprehensive GuideIntroduction: 💥 In the world of finance, option trading has gained significant popularity among investors and traders alike. It offers a unique and versatile set of investment strategies that can be employed to capitalize on market movements, hedge against risks, and enhance overall portfolio performance. Whether you are a seasoned investor or just starting, understanding the fundamentals of option trading can provide you with valuable tools to navigate the financial markets effectively. In this article, we will delve into the basics of option trading, explore its benefits and risks, and provide insights into some popular option strategies. 👀 What are Options? 💥 Options are derivative financial instruments that grant the holder the right, but not the obligation, to buy or sell an underlying asset at a predetermined price within a specified time period. The underlying asset can be stocks, commodities, indices, or even currencies. The predetermined price is known as the strike price, and the specified time period is the expiration date of the option. 👀 Call Options vs. Put Options 💥 There are two types of options: call options and put options. A call option gives the holder the right to buy the underlying asset at the strike price before the expiration date. On the other hand, a put option provides the holder with the right to sell the underlying asset at the strike price before expiration. 👀 Benefits of Option Trading 💥 Flexibility: Options provide investors with a flexible range of strategies to suit their investment goals and risk appetite. They can be used to generate income, hedge against potential losses, or speculate on market movements. 💥 Leverage: Option trading allows investors to control a larger position of an underlying asset with a smaller upfront investment, known as the premium. This potential leverage can amplify returns if the market moves in the anticipated direction. 💥 Risk Management: By using options, investors can manage and limit their risk exposure. Protective put options, for example, can act as insurance against potential price declines in a stock, while covered call options can generate income and provide a cushion against potential losses. 💥 Diversification: Options can be used as part of a diversified investment strategy to mitigate risk and enhance portfolio performance. By incorporating options with different underlying assets and expiration dates, investors can reduce reliance on a single investment and spread their risk across multiple positions. 👀 Risks of Option Trading 💥 Limited Time Horizon: Options have expiration dates, and if the underlying asset doesn't move in the anticipated direction within the given time frame, the option may expire worthless, resulting in a loss of the premium paid. 💥 Complexities: Option trading involves various strategies and concepts that may seem complex to beginners. It is essential to thoroughly understand the mechanics and risks associated with each strategy before implementation. 💥 Volatility and Market Uncertainty: Options are sensitive to changes in market volatility. Increased volatility can lead to higher option premiums, but it can also increase the risk of unexpected price movements, potentially resulting in losses. 👀 Popular Option Trading Strategies 💥 Covered Call: This strategy involves selling call options on an underlying asset that the investor already owns. It generates income (the premium received) while limiting the potential upside if the asset's price rises above the strike price. 💥 Protective Put: This strategy involves buying put options on an underlying asset to protect against potential downside risk. If the asset's price declines, the put option will offset some or all of the losses. 💥 Long Straddle: This strategy involves buying both a call option and a put option with the same strike price and expiration date. It profits from significant price movements in either direction, regardless of the underlying asset's actual price movement. 💥 Iron Condor: This strategy combines a bear call spread and a bull put spread. It aims to benefit from a range-bound market, where the underlying asset's price remains relatively stable
AMEX:SPY
by A1TradingHub
The Greeks in Option Trading!The Greeks are mathematical measures used in options trading to assess and quantify different factors that impact the price and behavior of options. 📌 VEGA: Vega measures how much an option's price will change in response to a 1% change in implied volatility. Implied volatility reflects the market's expectation of the future movement of the underlying security. When implied volatility is high, options tend to be more expensive, while low implied volatility makes options cheaper. Vega has a greater impact on options with longer expiration dates. As an option approaches expiration, Vega decreases, while it increases as the underlying security moves closer to the strike price. Vega is highest when the option is at-the-money and decreases as it goes out-of-the-money or in-the-money. 📌 GAMMA: Gamma represents the rate of change between an option's Delta and the price of the underlying asset. Higher Gamma values indicate that even small price changes in the underlying stock or fund can cause significant changes in the option's Delta. At-the-money options have the highest Gamma because their Deltas are most sensitive to underlying price movements. For example, if XYZ is priced at $100.00 and a XYZ $100.00 call option is considered at-the-money, any price movement in either direction will push the option into either in-the-money or out-of-the-money territory. This high sensitivity to stock movement is reflected in the option's Gamma, making Gamma higher for at-the-money options. 📌 THETA: Theta represents the theoretical daily decay of an option's price, assuming all other factors remain constant. Options gradually lose value over time due to time value decay. The decay is more significant as the expiration date approaches, particularly for near-the-money options. Theta does not behave linearly; instead, it accelerates as expiration nears. A higher Theta indicates that the option's value will decay more rapidly over time. Short-dated options, especially near-the-money ones, tend to have higher Theta because there is greater urgency for the underlying asset to move favorably before expiration. Theta is negative for long positions (options purchased) and positive for short positions (options sold), regardless of whether it's a call or a put. 📌 RHO: Rho measures an option's sensitivity to changes in the risk-free interest rate. It represents the amount of money the option will gain or lose with a 1% change in interest rates. Changes in interest rates can affect an option's value because they impact the cost of carrying the position over time. This effect is more significant for longer-term options compared to near-term options. Higher stock prices and longer time until expiration generally lead to greater sensitivity to interest rate changes, resulting in higher absolute Rho values. Rho is positive for long calls (the right to buy) and increases with the stock price. It is negative for long puts (the right to sell) and approaches zero as the stock price increases. Rho is positive for short puts (the obligation to buy) and negative for short calls (the obligation to sell). 📌 DELTA: Delta is a measure that estimates how much an option's value may change with a $1 increase or decrease in the price of the underlying security. Delta values range from -1 to +1, with 0 indicating minimal movement of the option premium relative to changes in the underlying stock price. Delta is positive for long stocks, long calls, and short puts, which are considered bullish strategies. Conversely, Delta is negative for short stocks, short calls, and long puts, which are bearish strategies. A Delta of +1 is assigned to long stock shares, while a Delta of -1 is assigned to short stock shares. An option's Delta can range from -1 to +1, and the closer it is to +1 or -1, the more sensitive the option premium is to changes in the underlying security.
AMEX:SPY
by A1TradingHub
Mersana Therapeutics: Enjoy!If it holds support, it'll take off and head towards the top end of the range. Check out the crazy Call Options volume for the 8/18 $7.5 Strike Price... over 23,000 for this little unknown Pharma company. Somebody knows something... don't you think? Mersana Therapeutics, Inc. is a clinical-stage biopharmaceutical company, which engages in the development of antibody-drug conjugates that offer clinical benefit for cancer patients. Its product candidates are Upifitamab Rilsodotin (UpRi), XMT-1536, and XMT-1592. The company was founded by Mikhail Papisov in 2001 and is headquartered in Cambridge, MA. The listed name for MRSN is Mersana Therapeutics, Inc. Common Stock.
NASDAQ:MRSNLong
by Goontata84
Using Heikin Ashi Candles to Exploit the BIG REVERSAL on $FAs you can see, on NYSE:F there is a large area of supply on the daily timeframe from 14.72-15.00. The blue dotted line at 14.55 is a point of control. I have started a small position short on NYSE:F 1-2 months out. Notice the 1 and 4 hour Heikin Ashi candles already showing the start of a bearish trend. I'd like for the daily candles to confirm the bearish trend before adding to this position. Let it dump, I never liked Ford vehicles anyway!
NYSE:FShort
by thetradedoc
1