here's an options example, should TER close with a doji candle
like this: It has a reversion to mean bounce possibility with the
doji and divergence via the CCI, as well as MACD divergence via a
60 min. The candle can change obvious as it's early in the
day which is why I would like to see it look like this before close
to the close of the day. Anyway an option spread would be to
sell the May 18th 32 puts and buy the 31 puts. I prefer doing
weekly options however most stocks do not offer weekly options,
only the big cap stocks do. However if the stock were to bounce in
the short term via the reversion to mean, you would be able to
close the spread out early as well, like in a few days maybe, and
NOT hold it to the May 18th expiration. Or one could just go long
the stock over the doji high for simplicity. anyway just showing an
example of what I look for in the spread trades, I look for
extremes on SPX and stocks like the CCI spiking above 200 or below
-200 and reversing having some divergence. TRE already report
also, I would not consider if it was going to report in a few days
etc
I am a bit confused as when you say sell the TER May 18th 32
puts and buy the 31 calls how is that a spread? You would have to
sell the May 18th 32 puts naked which requires a lot of margin. For
TDameritrade to sell 10 TER MAy 18th puts at .70 on a naked basis
would take in $700 and require margin of $5,900.
no it's not naked - that's why you sell the 32 puts for the
premium and then buy the 31 puts, it's a bull spread., anyway the
spread is more narrow than it was before, not as ideal,
I corrected the typo on that post I had originally wrote buy the
31 call, it's the 31 put not call
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options example
Posted by matt on 1st of May 2018 at 11:44 am
here's an options example, should TER close with a doji candle like this: It has a reversion to mean bounce possibility with the doji and divergence via the CCI, as well as MACD divergence via a 60 min. The candle can change obvious as it's early in the day which is why I would like to see it look like this before close to the close of the day. Anyway an option spread would be to sell the May 18th 32 puts and buy the 31 puts. I prefer doing weekly options however most stocks do not offer weekly options, only the big cap stocks do. However if the stock were to bounce in the short term via the reversion to mean, you would be able to close the spread out early as well, like in a few days maybe, and NOT hold it to the May 18th expiration. Or one could just go long the stock over the doji high for simplicity. anyway just showing an example of what I look for in the spread trades, I look for extremes on SPX and stocks like the CCI spiking above 200 or below -200 and reversing having some divergence. TRE already report also, I would not consider if it was going to report in a few days etc
TER decent bounce
Posted by steve on 1st of May 2018 at 01:48 pm
TER decent bounce
I did the TER trade
Posted by matt on 1st of May 2018 at 02:11 pm
I did the TER trade before I left earlier, nicely profitable now as the spread has narrowed
Confused about Options Example
Posted by victorh on 1st of May 2018 at 12:22 pm
I am a bit confused as when you say sell the TER May 18th 32 puts and buy the 31 calls how is that a spread? You would have to sell the May 18th 32 puts naked which requires a lot of margin. For TDameritrade to sell 10 TER MAy 18th puts at .70 on a naked basis would take in $700 and require margin of $5,900.
no it's not naked -
Posted by matt on 1st of May 2018 at 02:16 pm
no it's not naked - that's why you sell the 32 puts for the premium and then buy the 31 puts, it's a bull spread., anyway the spread is more narrow than it was before, not as ideal,
I corrected the typo on that post I had originally wrote buy the 31 call, it's the 31 put not call