$PANW Earnings Runup & Chart SetupBreaking down the potential runup for NASDAQ:PANW ahead of earnings, along with a possible strategy to capture volatility. Keep an eye on key levels and timing for optimal entry and exit points.
Optionstrading
Quick Update on Nifty and BankNifty after Hindenburg reportHello Traders,
Checkout the latest update on Nifty and BankNifty after Hindenburg report on SEBI chairperson and Adani
Retest of the Lows, Rocket Ride up from Here?Here we are. Just you, me, and a strange serious of price action events with NVDA...
So, how do we read this in the short-term future?
I always start with a Daily Chart (1D). MACD and RSI are overdue for a little pop towards the upside. After a retest of the lows, NVDA bounced off what we can now call Support at 97.
Our initial price targets still stand. In the short-term, 511. After that, the next leg up is 514.
Today, the market manipulators started to release the recovery news. Keep in mind, it's Ms. Market's job to ensure growth and stability in the market. Jobless claims were presumably "not as bad" as they previously stated. Right, okay.
Anyway, who cares? We're not trading feelings, we're trading options.
Moving forward, the market closes higher swinging into Friday as we use volatility as our friend to secure profits with expirations further out. I'd call this phase, "safe swinging".
Let's see how the market reacts EOW. Thanks for tuning in.
RDUS Radius Recycling Options Ahead of EarningsIf you haven`t sold RDUS before the previous earnings:
Now analyzing the options chain and the chart patterns of RDUS Radius Recycling prior to the earnings report this week,
I would consider purchasing the 15usd strike price Puts with
an expiration date of 2024-11-15,
for a premium of approximately $2.02 .
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
ABT Abbott Laboratories Options Ahead of EarningsIf you haven`t bough the dip on ABT:
Now analyzing the options chain and the chart patterns of ABT Abbott Laboratories prior to the earnings report this week,
I would consider purchasing the 105usd strike price Calls with
an expiration date of 2024-8-16,
for a premium of approximately $2.19.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
CVX Chevron Corporation Options Ahead of EarningsIf you haven`t sold CVX before the previous earnings:
Now analyzing the options chain and the chart patterns of CVX Chevron Corporation prior to the earnings report this week,
I would consider purchasing the 145usd strike price Puts with
an expiration date of 2024-12-20,
for a premium of approximately $4.10.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
NKLA Nikola Corporation Options Ahead of EarningsAnalyzing the options chain and the chart patterns of NKLA Nikola Corporation prior to the earnings report this week,
I would consider purchasing the 8usd strike price Puts with
an expiration date of 2024-8-16,
for a premium of approximately $1.09.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
Nifty Index View [Expiry: 08-08-2024]After a notable expiry week characterized by significant activity, the current Nifty expiry week commenced under less favorable conditions. This analysis explores the Nifty Index from both the expiry candle and options technical perspective to provide a comprehensive view of the market dynamics.
Expiry Candle Analysis:
This week's expiry candle started at the pivot point but closed below it, suggesting an initial bearish momentum. If the downtrend continue, the next support could be expected around 24,575, which aligns with S1 of the expiry pivot. Further decline might test the S2 at 24,415 - a pivotal level as it also corresponds to last week's expiry low. In terms of resistance, Pivot, TC (Top Central), and BC (Bottom Central) could serve as key barriers in the short term. The analysis leverages Fibonacci pivot calculations based on the expiry OHLC (Open, High, Low, Close) data.
Historically, a relatively quiet week often follows a highly active expiry week. Given this pattern, the current week might lean towards a neutral or slightly negative close, echoing the subdued sentiment post-high volatility periods.
Options Analysis:
Instead of focusing on volume or open interest, this review emphasizes a technical assessment of the options chain. Technical ratings added to the monthly expiry options reveal that:
Call Options: Moving Averages are indicating a strong sell signal, with Oscillators showing a mix of neutral and sell signals, suggesting bearish expectations.
Put Options: Moving Averages are mostly neutral while Oscillators are leaning towards buy signals, indicating some expectation of upward price movements yet underscored by caution.
Near Term Options Outlook(Current Expiry):
Call Side: Signals are overwhelmingly negative, pointing towards bearish market expectations.
Put Side: Presents mixed signals, which could imply uncertainty or a potential for slight recovery, but the overall sentiment remains cautiously pessimistic.
Conclusion:
Both the expiry candle and technical indicators from the options chain suggest a market leaning towards a neutral to negative closure for the current expiry period. Traders should consider integrating additional data and analyses to corroborate these findings and refine their market strategies.
NIFTY, what next?Today, the market found support at the S4 level of the expiry pivot. Will it withstand or will the downtrend resume?
The day's option chain (expiry 08-08-2024) suggests a bleak outlook, hinting at a potential further decline.
However, the last 30 minutes have shown signs of recovery.
If global cues stabilize, there's a chance for recovery from the oversold territory.
NB: The tables are hard coded and not part of any script.
Breakdown of our SHORT SPX TRADEExpected move yesterday close was 5380
Morning Call we said 5380 will Resistance
Traget was 5312
I we teach SPX reset everyday, VWAP great tool for direction .
Happy everyone in the room made money!!
Stay Frosty!
PG The Procter & Gamble Company Options Ahead of EarningsIf you haven`t bought PG before the previous earnings:
Now analyzing the options chain and the chart patterns of PG The Procter & Gamble Company prior to the earnings report this week,
I would consider purchasing the 165usd strike price Puts with
an expiration date of 2024-9-20,
for a premium of approximately $2.05.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
CL Colgate-Palmolive Company Options Ahead of EarningsIf you haven`t bought CL before the breakout:
Now analyzing the options chain and the chart patterns of Options Ahead of Earnings prior to the earnings report this week,
I would consider purchasing the 100usd strike price Calls with
an expiration date of 2024-11-15,
for a premium of approximately $3.45.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
PM Philip Morris International Options Ahead of EarningsIf you haven`t sold PM before the previous earnings:
Now analyzing the options chain and the chart patterns of PM Philip Morris International prior to the earnings report this week,
I would consider purchasing the 109usd strike price Calls with
an expiration date of 2024-7-26,
for a premium of approximately $1.22.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
Nifty and BankNifty Update Hello traders ,
Checkout the quick update on Nifty and BankNifty. Also checkout an update on CAMS and Rpower
Options Blueprint Series: Bear Put Diagonal Fly on Euro FuturesIntroduction
Euro FX EUR/USD Futures are a key instrument in the futures market, allowing traders to speculate on the future value of the Euro against the US Dollar. Trading Euro FX EUR/USD Futures provides exposure to the currency markets, enabling traders to hedge risk or capitalize on market movements.
Key Contract Specifications:
Contract Size: 125,000€
Tick Size: 0.00005
Tick Value: $6.25
Margin Requirements: Approximately $2,100 (varies by broker and market conditions and changes through time)
These contract specs are crucial for understanding the potential profit and loss scenarios when trading Euro Futures. The tick size and value help determine the smallest price movement and its monetary impact, while the margins indicate the amount of capital required to initiate a position.
Strategy Explanation
The Bear Put Diagonal Fly is an advanced options strategy designed to profit from a bearish market outlook. This strategy involves buying and selling put options with different expiration dates and strike prices, creating a diagonal spread.
Bear Put Diagonal Fly Breakdown:
Buy 1 Put (longer-term expiration): This long put provides downside protection over a longer period, benefiting from a significant decline in the underlying asset.
Sell 1 Put (intermediate-term expiration): This short put helps to offset the cost of the long put, generating premium income and partially financing the trade.
Buy 1 Put (shorter-term expiration): This additional long put offers further downside protection, particularly for a shorter duration, enhancing the overall bearish exposure.
Purpose of the Strategy: The Bear Put Diagonal Fly is structured to take advantage of a declining market with specific price movements over different time frames. The staggered expiration dates allow the trader to benefit from time decay and volatility changes.
Advantages:
Cost Reduction: The premium received from selling the put helps to reduce the overall cost.
Enhanced Bearish Exposure: The additional shorter-term put provides extra exposure.
Flexibility: The strategy can be adjusted or rolled over as market conditions change.
Potential Risks:
Time Decay: If the market does not move as expected, the long puts may lose value due to time decay.
Volatility Risk: Changes in market volatility can impact the value of the options.
Application on Euro Futures
To apply the Bear Put Diagonal Fly strategy on Euro Futures, careful selection of strike prices and expiration dates is crucial. This strategy involves three options positions with different expirations to optimize the potential profit from a bearish market move.
Selecting Strike Prices and Expiration Dates:
Long Put (longer term): Choose a strike price above the current market price of Euro Futures to benefit from a significant decline.
Short Put (intermediate term): Select a strike price closer to the market price to maximize premium income while reducing the overall cost of the strategy.
Long Put (shorter term): Pick a strike price below the market price to provide additional bearish exposure.
Why This Strategy is Suitable for Euro Futures:
Market Conditions: As seen on the upper chart, the current market outlook for the Euro suggests potential downside due to technical factors, making a bearish strategy appropriate.
Volatility: Euro Futures often experience significant price movements, which can be advantageous for the Bear Put Diagonal Fly strategy, as it thrives on volatility.
Flexibility: The staggered expiration dates allow for adjustments and management of the trade over time, accommodating changing market conditions.
Futures (underlying using the 6E1! continuous ticker symbol) Entry, Target, and Stop-Loss Prices:
Short Entry: 1.09000
Target: 1.08200
Stop-Loss: 1.09400
Options Trade Setup (using Futures September cycle with 6EU2024 ticker symbol):
The Bear Put Diagonal Fly on Euro Futures involves a structured approach to setting up the trade. Here’s a step-by-step guide to executing this strategy:
1. Buy 1 Put (Sep-6 expiration):
Strike Price: 1.095
Premium Paid: 0.0102 (or $1,275 per contract)
2. Sell 1 Put (Aug-23 expiration):
Strike Price: 1.09
Premium Received: 0.0061 (or $762.5 per contract)
3. Buy 1 Put (Aug-9 expiration):
Strike Price: 1.085
Premium Paid: 0.0021 (or $262.5 per contract)
Risk Calculation:
Net Cost = ($1,275 + $262.5) - $762.5 = $775
Risk: The initial net cost of the strategy. Risk = $775
Trade and Risk Management
Effective risk management is essential when trading options strategies like the Bear Put Diagonal Fly on Euro Futures. Effectively managing the Bear Put Diagonal Fly on Euro Futures is crucial to optimize potential profits and mitigate risks. Here are common guidelines for managing this options strategy:
Using Stop-Loss Orders:
In the Bear Put Diagonal Fly strategy, setting a stop-loss at 1.0940 ensures that if Euro Futures move against the expected direction, the losses are contained.
Avoiding Undefined Risk Exposure:
The Bear Put Diagonal Fly is a defined risk strategy, meaning the maximum loss is known upfront and limited to the initial net cost.
Precise Entries and Exits:
Timing the Market: Entering and exiting trades at the right time is crucial. Using technical analysis tools such as UFO Support or Resistance levels can help identify optimal entry and exit points.
Monitor Time Decay:
Keep a close eye on how the time decay (theta) impacts the value of the options. As the short put approaches expiration, assess whether to roll it to a later date or let it expire.
Volatility Changes:
Changes in market volatility can affect the strategy’s profitability.
Rolling Options:
If the market moves unfavorably, rolling the options to different strike prices or expiration dates can help manage risk and maintain the strategy’s viability.
Regular Check-ins:
Review the position regularly to ensure it aligns with the expected market movement. Adjust if the market conditions change or if the position starts to deviate from the initial plan.
Profit Targets:
Set predefined profit targets and consider taking profits when these targets are reached.
Exit Strategies:
Have a clear exit plan for different scenarios, at least for when the stop-loss or target is hit.
By implementing robust risk management practices, traders can enhance their ability to manage potential losses and improve the overall effectiveness of their trading strategies. Managing the Bear Put Diagonal Fly requires active monitoring and the flexibility to adjust the positions as market conditions evolve. This proactive approach helps in maximizing potential returns while mitigating risks.
Conclusion
The Bear Put Diagonal Fly is an advanced options strategy tailored for a bearish outlook on Euro Futures. By strategically selecting options with different expiration dates and strike prices, this strategy offers a cost-effective way to capitalize on anticipated declines in the Euro while managing risk.
Summary of the Bear Put Diagonal Fly Strategy:
Cost Reduction: The short put helps to offset the cost of the long puts, making the strategy more affordable.
Enhanced Bearish Exposure: The additional long put provides extra downside protection.
Flexibility: The staggered expiration dates allow for adjustments and trade management over time.
Why This Strategy Could Be Beneficial:
The current market conditions suggest potential downside for Euro Futures, making a bearish strategy like the Bear Put Diagonal Fly appropriate.
The defined risk nature of the strategy ensures that maximum potential losses are known upfront.
Effective trade and risk management techniques can further enhance the strategy’s performance and mitigate potential risks.
By understanding the mechanics of the Bear Put Diagonal Fly and applying it to Euro Futures, traders can leverage this advanced options strategy to navigate bearish market conditions with greater confidence and precision.
When charting futures, the data provided could be delayed. Traders working with the ticker symbols discussed in this idea may prefer to use CME Group real-time data plan on TradingView: www.tradingview.com This consideration is particularly important for shorter-term traders, whereas it may be less critical for those focused on longer-term trading strategies.
General Disclaimer:
The trade ideas presented herein are solely for illustrative purposes forming a part of a case study intended to demonstrate key principles in risk management within the context of the specific market scenarios discussed. These ideas are not to be interpreted as investment recommendations or financial advice. They do not endorse or promote any specific trading strategies, financial products, or services. The information provided is based on data believed to be reliable; however, its accuracy or completeness cannot be guaranteed. Trading in financial markets involves risks, including the potential loss of principal. Each individual should conduct their own research and consult with professional financial advisors before making any investment decisions. The author or publisher of this content bears no responsibility for any actions taken based on the information provided or for any resultant financial or other losses.
CRWD SHOULD BE ADDED 26th july 2024CRWD should be added as per the entry on tbe chart with proper momey management and SL levels.
QQQ Intraday $100 to $2500 with options RECAPQQQ is shown here on the 15 minute time frame. Overlaid are a HMA 7 and SMA 5 to provide
moving average crosses. QQQ made a "M" pattern. Options charts are shown in the updates.
First Trade SQQQ is opened at 9:48 for $ 6.00 per call contract times 16 contracts. It is closed
at 10:05 less than 20 minutes later at $20.00 per contract. $96 dollars the only risk in the trade
is waiting to settle as is the $ 224.00 in profit. ( This is a same day expiration intraday trade)
Second Trade QQQ as QQQ has topped and is pivoting down. The second trade of the day
is not a same day expiration as it is now Friday afternoon, a put option in the direction of the
trend is taken for Tuesday the 20th, there being no puts for the Monday holiday.
The floating profit is $ 224 and the strike is set for below the money in the current direction of
the trend. A strike of $ 429 selected. The options chart is shown in the updates.
The premium was 0.37 so $37 per contract so six contracts were taken for a total of
which is $222 or slightly less than the profit on the first trade. The trade is taken at 14:47
market time and closed about 90 minutes later at 15:52 before the close.
The contracts sold at close for $ 1.41 each yielding $ 141 per contract or $ 2256 overall.
Between the two trades $100 was risked and $ 233 + 2256 or 2489 overall.
The Reward to Risk ratio was about 25. The profit and the initial $100 into the trades
awaits settlement after the holiday.
This trade was made to teach a mentee about the power of options leveraged with narrow
expirations to optimize profits and not spend a lot of time in the trade to minimize risk
in the market from any number of potentials. Alerts and notifications centered on moving
averages and rise or fall of intraday low time frame relative strength are used to lessen
screen time. Twenty baggers may not be everyday but then again with practice and patience
they can come along often enough.
Nifty and BankNifty UpdateHello Traders,
Checkout the latest update on Nifty and BankNifty . Also keep booking profit on stocks which we have suggested on budget day
FAST Fastenal Company Options Ahead of EarningsAnalyzing the options chain and the chart patterns of FAST Fastenal Company prior to the earnings report this week,
I would consider purchasing the 62.12usd strike price Calls with
an expiration date of 2024-7-19,
for a premium of approximately $2.37.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
VIST Vista Energy Options Ahead of EarningsAnalyzing the options chain and the chart patterns of VIST Vista Energy prior to the earnings report this week,
I would consider purchasing the 60usd strike price Calls with
an expiration date of 2024-12-20,
for a premium of approximately $1.70.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
JPM JPMorgan Chase & Co Options Ahead of EarningsIf you haven`t bought the dip on JPM:
Now analyzing the options chain and the chart patterns of JPM JPMorgan Chase & Co prior to the earnings report this week,
I would consider purchasing the 200usd strike price in the money in the money Calls with
an expiration date of 2025-1-17,
for a premium of approximately $17.25.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
DFS Discover Financial Services Options Ahead of EarningsAnalyzing the options chain and the chart patterns of DFS Discover Financial Services prior to the earnings report this week,
I would consider purchasing the 145usd strike price Calls with
an expiration date of 2025-1-17,
for a premium of approximately $11.25.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
