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How do crypto options contracts affect the market?Hi Friends Today we will explain the option contracts affect on crypto and other markets. First lets see whats an option contract? Options are derivative contracts that entitle the purchaser to buy or sell the connected asset at a predetermined price before the contract expires. There are two types of options , call and put. The right to buy is known as a ‘call’ option, whereas the right to sell the underlying asset is called a ‘put’ option. Every options contract comes with a specified expiry date which is the last date for settling the contract. The price at which the options contract is settled is called the strike price . This is the price at which the options contract owner is allowed to buy/sell the underlying cryptocurrency. The price at which an options contract is bought is called the premium . Now, when would you buy a cryptocurrency? Obviously when it is trading at a price that is lower than it should be,right? This means that you find it to be undervalued and you expect its price to rise in the future so you can sell higher and make money. But what if the crypto price fell instead? Wouldn’t it be nice if somebody would still buy the cryptocurrency from you at a higher price? For that you would require selling rights of the cryptocurrency and you will buy a put option. Now on the flip side when would you sell a cryptocurrency? Of course, when you think that it is trading at a price higher than it should be. This means that you find it to be overvalued and expect it to fall from here. But what if the price of the cryptocurrency rose instead? You would then want to add more crypto at a lower price and sit on assets that are valued higher than your purchase price. For this you would need buying rights or a call option. Since options allow traders the right to buy/sell assets at a predetermined price they shield them from the volatility of the crypto markets. Moreover the volume of the call or put options in the market signals the direction in which investors expect the markets to move. More put options indicate that investors expect the markets to fall whereas more call options indicate that investors expect the market to rally. Now when the option contracts are near their expiration date, large players try to drive the underlying crypto price into a favourable range depending on the option contracts they have purchased. This is done so that the deal can become profitable. In summary: Buying a Call (Long) = Bullish -----> you think the crypto will be worth more later so you want to lock in todays price to buy later at a profit. Selling a Call (Short) = Bearish -----> you think the crypto will be worth less later so you want to lock in todays price to sell later at a profit. Buying a Put (Short) = Bearish ------> you think the crypto will be worth less later so you want to lock in todays price to sell later at a profit. Selling a Put (Long) = Bullish --------> you think the crypto will be worth more later so you want to lock in todays price to buy later at a profit. I hope you enjoy this education please share me your opinions in comments. thank you all specially @TradingView team
CRYPTOCAP:BTCEducation
by TraderAmin-KZ
AMD Calls/Puts: Levels to watch this weekAMD TLDR: Calls above 151.84 SL @ 150.16 Scale out 153.29-156.25 Puts below 139.87 SL @ 141.37 Scale out 136.34 -130.53 Mon Jan 03 2022 Currently above its 12 and 26 EMA Today it recaptured the 12 EMA the 12 EMA just crossed over the 26 EMA Currently Above its 20 MA MACD strengthening SO is not too hot: <80 and K% just crossed D% Latest news: Goldman Sachs analyst Toshiya Hari has a price target of 170(updated) Samsung teases the Galaxy S22’s AMD GPU as renders leak: arstechnica.com AMD CEO Teases Rembrandt 6nm APU Ahead of CES 2022 www.tomshardware.com Options chain activity: Mon Jan 03 2022 AMD open/close - $145.14 / $150.24 3.52% Call VOL - 390,469 Put VOL - 168,670 Call VOL% - 69.83% Call Prem % - 76.29% Bullish Prem % - 58.24% Put/Call Ratio - 0.43 AVG 30D PUT VOLUME MON JAN 03 2022 190.6K AVG 30D CALL VOLUME MON JAN 03 2022 374.4K TOTAL OI MON JAN 03 2022 3.5M - Call 1.7M Put 1.8M Highest OI Increase Option Prev day Vol Prev day OI Curr OI Change AMD 2022-1-21 C $125.00 5,163 14,194 18,906 4,712 (33.20%) AMD 2022-1-7 C $150.00 17,449 8,140 11,159 3,019 (37.09%) AMD 2022-1-14 C $160.00 3,581 2,433 4,884 2,451 (100.74%) AMD 2022-1-7 C $144.00 3,442 456 2,731 2,275 (498.90%) AMD 2022-1-7 C $170.00 3,401 4,280 6,521 2,241 (52.36%) Most active chains Chain Bid-Ask Low-High Volume OI AMD 2022-01-07 C $150.00 $3.55-$3.65 $1.72-$4.48 49,396 11,159 AMD 2022-01-07 C $155.00 $1.83-$1.85 $0.82-$2.37 35,928 13,364 AMD 2022-01-07 C $152.50 $2.59-$2.62 $1.20-$3.30 25,857 6,158 AMD 2022-01-07 C $160.00 $0.87-$0.91 $0.42-$1.21 17,579 11,704 AMD 2022-01-21 C $155.00 $4.55-$4.65 $2.93-$5.40 13,710 35,837 AMD 2022-01-07 C $148.00 $4.55-$4.75 $2.31-$5.63 12,984 3,971 AMD 2022-01-21 C $175.00 $0.96-$0.99 $0.64-$1.23 12,244 17,862 AMD 2022-01-21 C $200.00 $0.19-$0.22 $0.15-$0.27 12,161 20,252 AMD 2022-01-07 P $145.00 $1.29-$1.33 $1.15-$3.18 12,051 5,219 AMD 2022-03-18 C $135.00 $22.20-$22.70 $19.45-$23.45 10,140 2,422 AMD 2022-01-07 C $157.50 $1.24-$1.30 $0.58-$1.70 9,205 4,431 AMD 2022-01-07 C $149.00 $4.05-$4.15 $2.01-$5.05 9,034 2,194 AMD 2022-01-21 C $165.00 $2.09-$2.15 $1.32-$2.56 9,013 23,327 AMD 2022-01-21 C $150.00 $6.60-$6.70 $4.40-$7.60 8,930 46,924 AMD 2022-01-07 P $150.00 $3.25-$3.40 $2.88-$6.10 8,795 3,513 Biggest option trades Ticker Side Strike C/P Expiry Bid-Ask- Spot Size Prem OI Vol AMD BUY 135 call 2022-03-18 $23.25 - $23.50, $23.45 10,000 $23.5M 2.4K 10K AMD BUY 170 put 2022-03-18 $26.30 - $26.45, $26.40 468 $1.2M 913 503 AMD BUY 180 put 2022-02-18 $34.20 - $35.20, $34.76 325 $1.1M 701 325 AMD SELL 175 put 2022-02-18 $30.40 - $30.60, $30.46 325 $990K 1.6K 325 AMD SELL 175 call 2022-01-21 $1.06 - $1.09, $1.06 8,558 $907K 17.9K 10.6k
NASDAQ:AMDLong
by OccamsPhazer
DKNG Neckline BreakDescription DKNG appears to have made a break in the neckline as well as a back test, and I will be entering a starter Long Put position. For the larger time frame, refer to the idea I published here: Technical Indicators: Break in the neckline Death Cross on 29OCT Neckline rejection today Good volume on the breakout Using Long Puts Long Put Levels on Chart SL is set as a break and hold above the ascending neckline. Our eventual price target, as measured by the height of the "head", has us retracing the entire move that was made in 2020. For an intermediate target, we will go with the support set in August of 20. *Stops based off underlying stock price, not mark to market loss The Trade BUY 11/26 42P R/R & Break-evens vary on fill. Manage Risk Only invest what you are willing to lose
NASDAQ:DKNGShort
by BarnardR
PUTS ON LOCK for #BABASo as we have seen this week with the delisthing of DIDI i would encourage any trader looking to jump into Chinese stocks to proceed with caution or tread water very carefully as this seems to be exactly what Winnie the XI wants at this point the best plays we can do to make money on CCP plays is PUTS or at least for me that is how i will be proceeding i know it's hard to resist trying to time the bottom of a play but no one likes being a bag holder or get cut by a falling knife either.
NYSE:BABAShort
by Stock_Hustle21
12
TWTR Weekly Options PlayDescription TWTR remains in extended downtrend that began in FEB of this year. Began broadening formation in August that ended in a breakout to the downside of both the broadening formation and the major trendline that began in MAR of 20' Long Put Levels on Chart SL on a daily close over the lower trendline in the broadening formation. This can happen and a short is still valid, but due to the nature of options this position will be a close-out and search for new entry. *Stops based off underlying stock price, not mark to market loss The Trade BUY 11/12 53P R/R & Breakevens vary on fill. Manage Risk Only invest what you are willing to lose
NYSE:TWTRShort
by BarnardR
HEAR - repeated pattern in the chartsSo i legit stubbled on this one i have done no research or dug into it but i noticed something that right away caught my attention first i was on Unusual Whales FLOW page and i noticed 309 THOUSAND dollars on 2 option trades one being an Opening Position trade and smaller secondary one ( go check it out if you have whales ) one was placed same day mins before the market closed the smaller one and the larger one was for 274K. Now after seeing that and pulling up the chart i right away noticed the pattern it is now is repeated ( a large spike in price action followed by consolidation before a dip in price ) the most recent time taking the price from 14 to 4. if you go back further in the chart you will see another example of this as well. I'll be watching the flow closely to see if i enter a PUT option to enjoy some of that run down as they seem to take time so maybe a Dec 17th experation @ the $22 strike seems to be interesting lol.
NASDAQ:HEARShort
by Stock_Hustle21
Potential Head and Shoulders Put Options PlayI originally entered this at the 88.6% Retrace with the thought that it could be a bullish bat with divergence and while it did pump 32 percent from the PCZ it did not come close to my normal Bat target yet. But while holding my position on this stock i noticed that the price action actually looked a little like a Head and Shoulders so i decided to take profit and buy some puts. So the next step for us after entering these puts would be to wait and see if the macd crosses bearish again and invalidates our bullish divergence then we may see lower lows to fib extensions like the 1.618. I would not recommend shorting this stock as that is dangerous but instead buying some puts that are a couple months from expiration would be the safer route.
NASDAQ:DADAShort
by RizeSenpai
Prepared for S&P500 correction with Buying PUT optionI've closed every other position, staying in cash and playing for SPX correction because: 1/ SP500 RSI falling down 2/ Strong trendline broken 3/ Selling Volume increased My strategy is simple: BUY SPY Jun30' 415 PUT for 3.85db, because VIX is realive low SIZING: only a little of my CAP is used for this binary play. Stop/my risk management : Closing immediately if daily candle is closing ABOVE the box, max loss in my calculations in this case could be 50% of position. Take profit strategy: selling about ~38cr (x10). Of course I'll not wait until expiry...! If you liked this article, check my other ideas. Anyway: HIT THE LIKE BUTTON BELOW , and for fresh option ideas FOLLOW ME( @mrAnonymCrypto ) on tradingview !
CME_MINI:ES1!Short
by TanukiTrade
2
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.
NYSE:JNJShort
by DigitalData
3
True story. My Single put option "2 contract" both down/SPX downWhen i did my idea about the completion of an Elliott wave structure with 5th wave 1.61 Fibs of wave one i decided that i would buy small 2 SPY single Put contracts just satisfy my "bias" and my "emotion" toward my Elliott wave count as a worthy trading strategy. So i bought April 16 2021 + March 31 2021 just before the last price action we got in the past 5 days or so . A prefect timing to say the least to test the market and a perfect timing to buy single Put to say the least. Even though i new stimulus is coming soon and this could be another buy the dip pullback but i did it any way regardless of the huge risk if i actually have invested allot of money or bought allot of contracts. Therefore, when we got the recent pullback i opened my account and guess what i saw. Both of my "Single Put contracts" are down 41 % % 49 % and that's was at the bottom around 3800. Just imagine the situation the market is in ,SPX is down around 3 % and you hold single puts you bought just at the top, and at the very bottom your down more than 40%. Well the only thing i concluded from this "test the market" kind of style trading is at 3800sh i came to the conclusion way before the move of spx higher that this is "Buy the dip" pullback, because there is no way that we are correcting and my puts will go down in value instead going up in value and big investors regardless of their different kinds did not buy insurance what so ever for any possible correction. The only thing i should've down is to buy single Calls to see if they have increased in value or no, i guess the should've increased in value if this was buy the dip pullback because the new where the market is going. I have never tested this strategy before, but from my understanding that some big investors use it with single stocks not with SPY like me or ETFs for that matter before they decide to hold big chunk of it. I hope you can take a way something beneficial to you trading strategies or you have learned little something from my live example of a true story of mine. Wish you all the best.
SP:SPX
by samitrading
4
Short Selling Put OptionsI’m Markus Heitkoetter and I’ve been an active trader for over 20 years. I often see people who start trading and expect their accounts to explode, based on promises and hype they see in ads and e-mails. They start trading and realize it doesn’t work this way. The purpose of these articles is to show you the trading strategies and tools that I personally use to trade my own account so that you can grow your own account systematically. Real money…real trades. Short Selling Put Options When short selling put options, a question people ask me is, “Okay, Markus, how do you decide what strike price do you want to sell and whether there’s enough premium in there?” I made a put options calculator called “The Wheel Calculator” that I gave away as part of my recent class on selling put options (Theta Kings) that helps me determine just that. This calculator is now also integrated within The PowerX Optimizer Software as well. Using my put options calculator, I can enter a few different figures and it quickly lets me know if this stock makes sense to sell put options on. I started a small account with $25,380, and have continued to grow it substantially. This was all done by selling put premium using my handy put options calculator! So let’s take a look at a few examples using the airlines. Here’s how you can quickly compare if an option makes sense to sell. So United Airlines UAL , at the time of this is trading at $31.08/share. So I’m going to take a look at the April 24th expiration and the $20 strike price. I’m thinking maybe it would be a good idea to sell the $20 United Airlines UAL put option. So now that I have the strike selected that I would like to sell put options on, let’s take a look at the premium these options have. This will let us know if this trade actually makes sense. Right now, the Bid/Ask is $0.74 over $0.87. So I probably can get $0.80 for selling this option. This is all I need to enter in my spreadsheet, along with the expiration. With the needed inputs entered into my handy dandy put options calculator it tells me, “United Airlines can drop 36% and you’ll still be okay.” It has to drop 36% before we get in trouble. I think that’s pretty good odds in my opinion. The cool thing is that it also says that based on my account size, I should buy 17 options, and I would collect $1,320 in premium. So this means that per day I would get $110 in premium. That’s not bad at all if I can make $100 on just one position. And I like to have 4 to 5 positions in my account at any given time. So based on the number of positions I like to have, this means that you can make $400 to $500 per day collecting premium. I like this a lot because it means annualized I would make 87%! 87% is nothing to sneeze at, right? Short Selling Put Options — American Airlines So now let’s do this same thing with another airline, American Airlines AAL , and see how the numbers look. So like we did with UAL , I’m looking at what strike price in relation to where AAL is trading would it make sense to sell. For American Airlines AAL it looks like probably the $8 strike price would make sense right here. You always want to do it below the previously established low. So let’s take a look at American Airlines AAL . The price right now is $12.26. the options strike price, we said we’d probably have to look at is $8. Here we’re able to collect $0.35 per contract at the $8 strike price. And you see, I could actually, since American Airlines is so cheap, buy 41 options based on my account size. So 41 options and I would collect $1,444 in premium. This means I would get $120. That’s not bad at all. And you see, American Airlines AAL also can drop 35% and we would still be OK. We only get in trouble if American Airlines over the next 15 days drops more than 35%. Possible? Yes. This is why you should always be willing to own the stock. And this is why you want to make sure that you’re not getting in trouble. You need to adjust your position size based on your account. Here obviously, I don’t want to trade two airlines because if airlines are crashing, they probably all do. With that said, let’s take a look at Boeing AAL . Boeing Example I like trading Boeing. I'm looking at a Boeing AAL chart to see where might be a good level here to sell Boeing. Based on where AAL is trading at right now, it looks like $100 would be a good level to take a look at. Let’s first try a strike price of $100, shall we? For $100 we get probably a $1.55 right here, with Boeing AAL trading right now at $150. So if we were to sell the $100 put option on AAL , we are looking to make $1.55/contract. And you see, this means that Boeing AAL could drop 33%, so we’re good here. However, we can only buy three options. Why? Because Boeing AAL is really expensive. So if we would have to buy Boeing at $100, this is when it gets expensive, right? So you see, the strike prices here are much, much, much lower. This is where you see I would only trade three not to overextend myself. And that’s very important when you’re selling puts. You want to make sure that you’re not overextending yourself because otherwise, you’ll get margin calls. Margin calls are ugly. A margin call means that your broker tells you, “I want more money.” You want to avoid that at all costs! Because if you don’t have the money, you would have to sell the stock at a price that you don’t want. Usually, this is how you can wipe out an account. Anyhow, you see this is how we would only make $43 a day. Let me ask you, what would you rather make? $110 to $120 per day? Or $43 per day? I don’t know about you, but for me, these are better. So it’s very easy to quickly compare which options you should be trading when you’re selling puts. One of my favorite trading strategies right now is selling puts. This is what you have seen in the past few examples. My goal is to make $400 to $500 per day by doing so. The best days to sell puts is on a down day. On a down day, the VIX is usually shooting up and options premiums are higher. This is exactly what you’re looking for as a premium seller. For experienced options traders, selling put option premium in an environment like this can be a great way to consistently generate income, even if the stock doesn’t do exactly what you want. I hope this helps!
NASDAQ:UALEducation
by rockwelltrading
1
I SPY The First Extreme Turn Sell Signal Since the March LowsWe can keep this one pretty simple. It's day #2 with an Extreme Turn sell/short on the SPY daily timeframe. The prior day was the first sell signal in the entire move since the March lows. There is absolutely nothing bearish looking in this chart. That said, we recall our adage at TDG - Markets' always look the most bullish at the tops. We're expressing the signal with a $8 wide Bear Put - SPY SEP 340/332. As always, our risk is 50% of the premium paid so we're looking at risking about .60 to make $6+ Submitted Order Type Limit @ 1.15 Debit Fill Details • Bought 15 SPY 09/18/20 Put 340.00 @ 3.03 Filled at: Aug 28, 2020 3:08:10 PM EDT • Sold 15 SPY 09/18/20 Put 332.00 @ 1.88 Filled at: Aug 28, 2020 3:08:10 PM EDT We'll see if our patience pays? Trade Like You Mean It!
AMEX:SPYShort
by TDGonTView
2