Ride with the trend - option play
Sharing how I trade my option (1 min read)
After the FOMC meeting, it was evident that the trend was bearish yesterday. Bank of America was hitting 200 moving average and overhead resistance (see red dotted line below). That’s double resistance levels.
After the FOMC meeting, it was evident that the trend was bearish yesterday. Bank of America was hitting 200 moving average and overhead resistance (see red dotted line below). That’s double resistance levels.
Hence, I sold a covered call (bearish move). To add on, a gravestone doji candlestick was formed when the trading hours ended, which further confirming the bearish trend.
Guess what, when market opened today, I’m up 44%.
Guess what, when market opened today, I’m up 44%.
This is what I always meant by riding the trend. We don’t necessary have to predict whether the market is going up or down. Why guess the direction? Why not follow the direction?
If it goes up, ride the uptrend, trade the bullish trend. If it goes down, ride the downtrend, trade the bearish trend.
I encountered on so many occasions where traders or investors will ask “will the market be red or green today? will the market rally after FOMC?”. Hence, I really hope you have learnt something here ![]()
Lastly, am only a small option trader. But for big traders, if you can catch these signs well, feel free to 3X, 5X or even 10X the trades. Good luck! And invest safe ok!
If you have learnt something, do check out my YouTube channel on my profile. Like and subscribe alright![]()
Lastly, am only a small option trader. But for big traders, if you can catch these signs well, feel free to 3X, 5X or even 10X the trades. Good luck! And invest safe ok!
If you have learnt something, do check out my YouTube channel on my profile. Like and subscribe alright
$Bank of America(BAC.US$ $Tesla(TSLA.US$ $Apple(AAPL.US$ $SPDR S&P 500 ETF(SPY.US$ $Invesco QQQ Trust(QQQ.US$ $Meta Platforms(META.US$ $NVIDIA(NVDA.US$ $S&P 500 Index(.SPX.US$ $CBOE Volatility S&P 500 Index(.VIX.US$ $Microsoft(MSFT.US$ $ProShares UltraPro Short QQQ ETF(SQQQ.US$ $Alphabet-A(GOOGL.US$
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Successful investing is about managing risk, not avoiding it. DYODD
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icezzz : Thanks for ur sharing. u r right. Is too tired guessing
Cow Moo-neyOP icezzz: Haha indeed!
BeBlessed : Congrats!
102271429 : how to buy covered option?
Cow Moo-neyOP BeBlessed:
Cow Moo-neyOP 102271429: I sold it. I didn't buy.
If you sell 1 Call contract, you need to have 100 shares of the underlying stock.