A disciplined way to play options. After playing the option game from the $400 to now, I have reviewed my plays, studies what worked and learned from my mistakes.
When to initiate calls?
- A good place to start seems to whenever the short term resistance is broken (when bullish flag is confirmed). For example, on 7/1, we gapped up and broke the resistance at $407, which was established by the downward cluster. On 7/24, we gapped up again, break apart the downward cluster with resistance at $433.2.
When to sell to close the calls?
- Perhaps a harder questions, especially if you hold longer term options. People tend to hold it longer than necessarily, thinking that eventually it will go up again.
- I like to use RSI as the guide. Consolidation appears to be signaled by > 10% drop on RSI. This appears to be reliable.
Also keep in mind that there is a negative divergence on RSI. Caution advised going forward.
When to initiate calls?
- A good place to start seems to whenever the short term resistance is broken (when bullish flag is confirmed). For example, on 7/1, we gapped up and broke the resistance at $407, which was established by the downward cluster. On 7/24, we gapped up again, break apart the downward cluster with resistance at $433.2.
When to sell to close the calls?
- Perhaps a harder questions, especially if you hold longer term options. People tend to hold it longer than necessarily, thinking that eventually it will go up again.
- I like to use RSI as the guide. Consolidation appears to be signaled by > 10% drop on RSI. This appears to be reliable.
Also keep in mind that there is a negative divergence on RSI. Caution advised going forward.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.