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Options
There are hundreds of books written about options. There are hundreds of strategies a trader can do with options. For my style of trading, there are 5 basic strategies that I like to follow. Lets Dive In . . .
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Strategy #1
Directional Swings Trades That Last a Few Weeks
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Buying Options
Main thing is to have a setup on the underlying stock. Squeeze on the daily chart works really well. Think of it this way you are just using the option as a CHEAPER WAY to buy the stock. $16 for an option is a lot cheaper than $160 for the stock. 1 option = 100 shares of stock. $16 option = $1600 out of pocket cost. Key is buying IN THE MONEY strike prices
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Buying Options
Squeeze fires off long on MA at $170 July options at this point only have 1 week left. TWO OPTIONS: Buy DITM July Options like $155 And if trade is still valid at expiration sell these options and then buy the Aug 155s. Or just start off with the Aug 155s.
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Buying Options
Exit strategy same as stock Im looking to scale out. Stop on option is 50% of the value. $16 option, then $8 stop. First target is 50%, for 1/3. So $24. Second target is 100% for 1/3, $32. Last hold on for squeeze loss of momentum, TTM Trend change etc.
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Buying Options
1 option at $17 = $1700 cost 1 option at $55 = $5500 in proceeds Proceeds $3800 per contract
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Strategy #2
Directional Swings Trades That Last a Few Days
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Strategy #3
Directional Day Trades Trades That Last a Few Hours
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Strategy #4
Selling Credit Spreads on Weekly Options
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Strategy #5
Implied Volatility (IV) Crush On Bad News
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