NUE - Head & ShouldersNUE looking bearish with a beautiful head & shoulders pattern (bearish pattern)
BlueWave giving Bearish Divergence and a red dot sell signal
Put
CNC looking bearishCNC trying the top the 4th time. Very strong Resistance level.
BlueWave Going to give a red dot soon.
RSI is Overbought.
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Avoid Unprofitable Options ! - GME ExampleHello everyone, this is an example of how to detect unprofitable options BEFORE you take the trade , to better your chances.
We are all doing this (trading) for our own personal reasons, so we need to make sure we succeed.
I see many people want to SHORT GME, some other people suggest they buy PUT options on GME ---> This is a MISTAKE! Because those options are considered not probable to generate money.
In this example of GME (notice this is LOG CHART), you can buy a relative short-term put option for 41 days, but as you can see, to make 2 points of your risk you need the price to crash to a price of $50 within 41 days.
Why is it not profitable?
It costs 34.3, so you need the price to move down 34.3 dollars to be break-even, then another 34.3 dollars to 1 point of profit, and another 34.3 dollars to make 2 points of profits.
All this within 41 days... price could stay flat on a range of 160-255 and only then crash...
Assume that you fantasize about a 3 point profit on this PUT option, do you see the purple line? this is where the price needs to get so this fantasy will be true. HIGHLY UNLIKELY to happen.
So just avoid it!
Now, we will check the long-term option, maybe it gives us better results...
If we look at the long-term put option for 97 days, to make 2 points of profit you need the price to crash to 6!!!
So just avoid it!
It is fair to say though, that the longer-term put option, if someone thinks that a crash will happen testing the price of 45 within the next 3 months, he has a play of 1 to 1, that could be profitable.
But you can clearly see, that once you get that 1 to 1, you better snatch it and grab it because you are probably not going to get more $$$ from this trade.
Currently, the options on GME are not worth it (unprofitable), because the implied volatility is very high (150%+), they are very expensive.
ROKU still bearish to 240...Yes... I know... ROKU has been running this week but guess what, it is still in the massive downward channel!
ROKU bounced heavy off the long term trendline support and is now at a very interesting spot...which happens to be the downward trendline resistance!
This will be a great short opportunity into tomorrow if ROKU rejects resistance at ~338 (.5 fib)
My downside targets will be:
PT1: 304.34
PT2: 282.94
PT3: 241.03 (on break of long term trendline support)
In the unlikely event that I am wrong and ROKU continues its bullish run and breaks resistance...
Upside targets will be:
PT1: 352.58
PT2: 373.80
PT3: 400 (Psychological resistance)
Happy trading!
AR put option using RSI, Support, And resistanceIf AR stays below $11.47 tomorrow at 10:30am EST I will be placing a put option
the price target is shown on the chart where it says take profits here.
please dont forget, I am not your financial advisor, nor am I a professional trader.
enjoy and lets print.
This is on the 1HR time frame
GNW Rejection!Hello Community!
Before we begin please support my idea with a thumbs up and comment. It'll be greatly appreciated and will motivate me to post a little more!
This is a quick analysis. GNW keeps getting rejected on the daily timeframe, the RSI is overbought & THE MACD is heading towards the red. Until it breaks that diagonal resistance line drawn it will remain bearish (Short term).
This is not financial advice.
Safe Trading Calculate Your Risk/Reward & Collect!
Simplicity Wins
Selling PutsSomeone asked me about selling puts and I see a lot of people talking about selling TSLA puts
The nearest low is at a price of $591, the trend is long and we had almost 40% drop.
The implied volatility is relatively high but could be higher (if the IV will go higher it is bad for selling options)
The option has 30 days left until expiration.
If the price of TSLA will be above $590 the option will be worthless and all the premium will be received $1610
We need a sharp move up to the green line if we want to buy back the option before expiration and get all the premium.
In the previous epic wave of TSLA people made lots of money by selling naked puts.
Selling naked is for more advanced traders.
The Put/Call Ratio in a NutshellWhat is the put/call ratio?
The put/call ratio (PCE) is a popular barometer of market sentiment, which shows the ratio of trading volumes of Put vs Call options. However, with distortions in the current price of nearly every instrument off the back of "free money," and persistent market intervention by policy makers, we're not quite seeing the price discovery we're used to, which has made it more difficult to make sense of the Put-Call, and other technical indicators as well.
What is a derivative?
To understand the value of the put/call ratio, we must first understand the derivatives market. A derivative is a (leveraged) instrument, which gives the holder a right to either buy (call) or sell (put) a specific amount of a stock (or other instrument), at a specified price, and timeframe. If your'e holding a put, you're likely expecting the price of the stock to fall, while holders of calls are expecting the price to rise. Puts are usually used as a solid hedging tool, while calls are more often related to speculative behaviour.
How to use the put-call ratio?
When the put/call rises above 1, it indicates that market sentient is shifting more bearish. At the moment, we're looking at a put/call of around 0.46, which indicates that market sentiment is very bullish, and actually, it's been bullish for quite some time as you can see in the chart. When we see a massive shift in the put/call back above 1, naturally it would be showing that investors and traders are becoming more defensive.
$FCX PutNot a top priority play but potential is there. Looking at $FCX PUTs due the decreasing bullish volume and that it has rejected off this area before. Will be looking at how copper is doing in the morning before market opens. This will most likely be a day trade if I get in since earnings are this week.
NVDA Short Position downtrend for NVDA. There is a very obvious divergence between the RSI and the price action of the stock. Let me know what you guys think and feel free to check out my profile to overview more ideas. God bless
JNJ- POSSIBLE PUT OPTIONS - MAY 21ST 0.84 CONTRACTS $150All,
In semi recent news it's very possible JNJ loses the COVID contracts or at least long enough to take a solid tumble. IF it breaks into the red zone it should trigger a loss of a high and break trend downwards again to $145-$132 level. As always wait for conformation of breaking under first level and watch options volume/contracts for changes in price and news. JNJ in a prime spot to be shorted.
Also you can always cover with calls.
QQQ Short Idea Here I have identified a divergence between the RSI and price action of QQQ . I highly suspect a future downtrend. I have also labeled 2 levels of support, what do you guys think?
AMD Bull Put spreadHigher timeframe sideways caught between aggressive supply and demand
Last hourly in control is demand
Violated downward momentum line
Potential oscillation channel with good respect through middle and +-1 sigma
At hourly demand continuation pattern
Very aggressive selling
With flip zone high 77.81, bull origin gap defense zones
Put spread 19% ROI, 4 DTE
AAL Bull Put with TrendLast week rally ending gap removed aggressive supply
With higher timeframe trend Up
At ascending trendline
Not aggressive selling character, but no hourly supply removed yet either
Into a VPOC, first test
At hourly demand
At current flip zone high
Untested hourly demand defense
Able to get 19% ROI 11 DTE
MSFT Short PositionI have pinpointed a potential short for Microsoft. There is a divergance between the price action and RSI.
TATA STELL MAY RETEST 800 LEVELTATA STELL MAY RETEST 800 LEVELTATA STELL MAY RETEST 800 LEVELTATA STELL MAY RETEST 800 LEVELTATA STELL MAY RETEST 800 LEVELTATA STELL MAY RETEST 800 LEVELTATA STELL MAY RETEST 800 LEVELTATA STELL MAY RETEST 800 LEVELTATA STELL MAY RETEST 800 LEVELTATA STELL MAY RETEST 800 LEVELTATA STELL MAY RETEST 800 LEVELTATA STELL MAY RETEST 800 LEVELTATA STELL MAY RETEST 800 LEVELTATA STELL MAY RETEST 800 LEVELTATA STELL MAY RETEST 800 LEVELTATA STELL MAY RETEST 800 LEVELTATA STELL MAY RETEST 800 LEVELTATA STELL MAY RETEST 800 LEVELTATA STELL MAY RETEST 800 LEVELTATA STELL MAY RETEST 800 LEVELTATA STELL MAY RETEST 800 LEVELTATA STELL MAY RETEST 800 LEVELTATA STELL MAY RETEST 800 LEVELTATA STELL MAY RETEST 800 LEVELTATA STELL MAY RETEST 800 LEVELTATA STELL MAY RETEST 800 LEVELTATA STELL MAY RETEST 800 LEVELTATA STELL MAY RETEST 800 LEVELTATA STELL MAY RETEST 800 LEVELTATA STELL MAY RETEST 800 LEVELTATA STELL MAY RETEST 800 LEVELTATA STELL MAY RETEST 800 LEVELTATA STELL MAY RETEST 800 LEVELTATA STELL MAY RETEST 800 LEVELTATA STELL MAY RETEST 800 LEVEL
Buying QS 16 APR 21 30 PUTI'd like to see price hold this resistance on the daily time frame.
If price breaks and closes above $65.68, then I'll close the position and salvage what I can.
I expect price to continue to move lower and check $28.
Why did I buy puts with a $30 strike? Because price has already checked the $38 price level annotated by a check mark. I think price could push further down to the base of that price level (annotated by an up arrow) around $30 within the next 30 days.
Double top in VIACVIAC announced new shares will be issued diluting the current value of their already overvalued shares. A double top has formed on the chart. Correction ahead as there are multiple options for the underwriters to buy more shares after the initial offering, meaning the dilution could continue.
When a company sells its shares, it's essentially recognizing its share price is higher than it should be and they are taking advantage of it. Take profits and buy puts to take advantage on the investor end.
Bearish MACD cross appearing on the daily chart.
"The company is offering $2 billion of Class B common shares and $1 billion of a preferred stock that is convertible into the Class B common, ViacomCBS said Monday. The shares are the company’s nonvoting equity. The newly issued stock will start trading on March 24, Bloomberg News reported."
"Morgan Stanley and JPMorgan Chase & Co. are managing the offering. ViacomCBS granted them options to purchase up to $450 million in additional shares."
