And this is how the big boys do it. Jonathan Rose has a good video on Youtube on how to do this.Steer your position towards a targeted delta/gamma neutral position and adjust to generate income against it.
Positive gamma is long calls and log puts. Negative gamma is short calls and short puts. Positive Delta is long calls and short puts and negative delta is short calls and long puts.
So suppose you are sitting at 100 long shares of XYZ stock. I want to generate income against because its not doing anything....I would sell a .45 delta call option against it for premium which would offset my long shares and put cash in pocket then I would hedge the downside risk by buying 2 long puts at say .45 Delta at a long expiration date and sell 2 short puts at a closer expiration date to generate income on the put side. It should equate to more or less a slightly positive position with both downside risk covered and income producing.
Now instead of using stock shares you can use stock replacement by purchasing 2 long dated calls at .5 Delta and then you can sell 2 near term calls to generate more income instead of holding shares.
I am almost completely using stock replacement and don't even use indicators because all of the information about the future expected price is encoded within the options pricing.
Easy Peezy.
Thank you for so much help and do you have any recommendations for learning price action and also on this form there is auto fib would that be good to use as support and resistance points ? And also would this be a good time frames to use 5, 30 , 4 hr charts to look at for a potential trade yeah I need to get better at reading price action I refuse to give up ill keep on trying
https://usethinkscript.com/threads/asgoodasitgets-for-thinkorswim.11672/Your AsGoodAsItGets indicator how do you use it ? And do you trade options and do you have a chart set up you can share a link ?
Ok yeah I figured that wasn’t a truly reliable strategy I’ve tried it and it was pretty accurate but just make the chart hard to read at time and just don’t like it on mine and thank you again so much for all this I’m trying to get on the right path to my trading and this will help a lot
Everyone and their uncle is using what you have listed to trade SPY. That is why it does not work, particularly on short time frames. Price does not respect any of those indicators. In fact, price is the single factor in learning to be a profitable trader, period, full stop! Want to win at trading SPY? Focus on price and volume.I seriously need help finding a strategy, I keep on losing and not knowing what to do or what I should change I've used EMA crossover and even with hull moving data and Macd and DMI or MFI and i just cant seem to get it down, and I don't know what TF I should trade on if i should go to higher TF's or what and if I should use regular candles or Heikin Ashi Chart I've had good trade both on 1 min and 5 min but honestly probably just luck, but I'm not here for luck I'm trying to find consistency and success and I ask for anyone's help or just to give me a guide or to send me into the right direction on what I should do and if anyone wants I can post my charts of all the strategies I've tried a strategy that consist of me buying puts or calls on the cross over the fast ema is 8 the slow one is 21, and they use hull data not exponential and I look at the DMI to see if what side is stronger and use MFI to see if it's selling off or if people are buying I've tried to use it on 5 min and 1 min to both just me not making as much as I lose I have a 10% stop loss always and 15% Take Profit orders i usually try to move up my stop loss up while I'm up but I always get kicked out fast and I could have been in longer and made more
I have tried the macd cross over as a signal to buy puts or calls and RSI to see if I should get in right now or not, but I just can't get it down I always get in not good times or if I get filled its bad, and then I get kicked out by my stop loss and then just don't make profits and just want to know if I should be using a higher time frame or other indicator's injunction with these or try swing trading and I must succeed to provide for those who care about, so I've the determination so if anyone could help guide me to the right path to go from here would be much appreciated
@agorena123 Thanks for sharing your wonderful setup. Can you kindly explain further about your go to trading method. For example :- What are the things to look for in upper indicators and cumulative delta volume as enter point to buy call/put options?
In my opinion it would be one that I'd be looking to multiple time frames. The reasoning behind that is if the trend is moving in a direction for a longer period of time then you are more likely to come out profitable. Scalping options can cause you to either make or lose a lot of money really fast (since you'll likely pick options with a very short time to expiration). Because of the high risk high reward setup you want to do whatever you can to minimize potential downside. One of the ways I personally do this is by picking setups that have a potential trend in the direction I'm trading on bigger time frames, that way if I miss my exit on a really short time frame I still have a chance to get out alive without losing all of my money.Find the best options scalping strategy
Does anyone have an indicator/study that works best for them when it comes to Options Trading ?
Thanks.
Ohh wow. Same here. I usually day trade but swing occasionally if the charts are looking promising. I usually use RSI,MACD, Volume and VWAP. Just got into TTM Sqeeze recently (still trying to figure out how it works). I agree with you. The key is finding the best combinations that works for you. What time frame/s do you use ?@Tuna7020 What style(s) of Options Trading are you interested in, and do you have a current setup that you are using...??? I mainly scalp and day trade Options based on momentum so I use indicators that monitor the underlying symbols for confirmed trend reversals and increased momentum... TTM_Squeeze and RSI are good indicators, as well as many others... I have used several setups successfully over the years... What is most important is what combination of indicators works best for you... I'm sure we can come up with something once we know more about your trading style(s)...
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