Options in Play – Why I Don’t Like to Sell Worthless Options
When options get hammered and are trading at only 1-5% of the original net debit, it becomes a risk to reward game. Most of the time, I prefer to hold to see if the contract recovers value and view the strategy as a lotto.
Continue Reading -->Options in Play – Hedge Time
Eventually, volatility always returns – it’s just a matter of time. Whether or not today is the sign that we are entering a new period of higher volatility remains to be seen, but today’s action is a reminder of why hedges matter.
Continue Reading -->Strategic Day Trader Lesson 32: Variations on the T3 Buy Setup – Part 1
The Strategic Day Trader Lesson Series is designed to give you a comprehensive start-to-finish understanding of technical analysis. It is suitable for both short- and long-term traders, from traders who can follow the market for the entire day to traders who can only dedicate as little as 30 minutes per day. In this video, Sami explains: What he calls a Vanilla buy setup Why you need multiple time frames to find a buy setup When to enter before the end of a trend His favorite buy setup pattern Why you shouldn’t take the first entry on a stock with trapped traders How the Bleed Pattern applies to every time frame
Continue Reading -->Options in Play – Two Week Time Frame Bullish Swings
In a trending tape, 2 weeks will be a sweet spot for swing trades. A lot of what has been working recently is mid length expiration contracts on bullish breakouts, and if the market keeps grinding, that’s what we will keep screening for.
Continue Reading -->Options in Play – Earnings on the Radar Week of 11/22
Get ready for Retail! Earnings heat up in the Retail sector this coming week with several huge names scheduled to report.
Continue Reading -->When to Expect a Pullback
When a stock is following a specific trend, many traders assume that it will continue to follow that trend for a while, barring some external impact (like a new headline or an earnings report). But the stock may also face a retracement or a pullback, where the activity breaks out of the trend. Master trader Sami Abusaad takes a look at which stocks could have a change in movement and how traders can anticipate those changes. In this video, Sami explains: Why he’s going to continue calling SPY “all-out bullish” What happens when a stock grinds up When you should expect a pullback What he likes about ANAB How to determine an entry price based on a moving average
Continue Reading -->Options in Play – The Marriage of Option Size and Technicals
I’m not a huge fan of following unusual option activity, but there are definitely a couple scenarios when I love to see it. Stocks working on critical technical levels/set ups is one of my favorite times to watch for it, and AMD is a great recent example.
Continue Reading -->Options in Play – Tips for Option Hedges
Options are a great tool to help hedge positions/portfolios and SPY and QQQ are the go-to names for me. With volatility possibly creeping back into the market, it’s a good time to revisit some key hedge ideas.
Continue Reading -->Strategic Day Trader Lesson 31: Top Pattern Amplifiers – Part 2
The Strategic Day Trader Lesson Series is designed to give traders a comprehensive start-to-finish understanding of technical analysis. It’s suitable for both short- and long-term traders, including those who follow the market for the entire day and those who can only dedicate as little as 30 minutes per day. In this video, Sami explains: How minor support helps increase the price of a stock What professional traders should understand about points of resistance His favorite breakout pattern of all time Why stocks should stick to the 40%-60% zone Why the 200ma and 20ma command huge respect in all time frames
Continue Reading -->Options in Play – Longer Dated Doesn’t Always Mean Longer Hold
If you buy options with 1,2,3+ months to expiration, do you ever feel the need to hold just because you have the time? That’s not necessarily a good way to approach the longer term contracts.
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