Horizontal Trading
Horizontal trading can also = Profits ![]()
Click ![]()
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and support. ![]()
When the trading day shows a deep dive, check the TA and if the suport holds steady showing either a rebound likely or horizontal trade opportunity.
Initial position: After the huge stock Dive, Was looking at a short upward spike or horizontal trading day. Bought some calls while observing the market movement.
Day Trading on soon to expire options: My strategy, As the initial Trading movement shows horizontal movement, I timed to sell and profit take at the next peak. (Works better with stocks that has strong Fundamentals)
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Managed to add an overlay between the option and Tsla stock movement (Hopefully helps visually). As there is always a lag and lower volume between options and main stock, the line graph may not match exactly.
Stocks and options I’m currently monitoring during this period.
My Chart with some TAs I’m using ![]()
You can check out my timing, up and down trend to see my entry and exit points (profit take) (Might be overwhelming to some. Stick to those that works for you.)![]()
Tip: Price Calculator is an often ignored feature. I use it often such as, Pull the date bar to see the price decay over time. You can also change the stock underlying price to make more informed decisions, set profit taking ![]()
/ stop loss![]()
limits over the horizon. ![]()
Thus for this soon to expire option, I did not plan to hold over the next day unless I expect huge price fluctuations. My strategy is to take profit now and relook again when market reopens tomorrow.
Special note to self. Wanted to celebrate my 777th Day with MooMoo 🐮. Finally Bought my 1st MacBook 💻 when its on my 803th day.
Initially wanted something entry level but watch too much YT on M3 Chips performance and over pampered myself ![]()
. My excuse is its ok, all fully sponsored by my trading profits. ![]()
Feels especially good when you buy $Apple(AAPL.US$ and get 💻 . ![]()
How many days have you joined MooMoo 🐮. comment and share your journey too. ![]()
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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Investing casually and learning as I go.
My journey to double my 💰at the min.
While sharing journey w kindred souls.
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HardPrayer : this is options strategy? normal buy sell stocks won't work for horizontal trade right?
CasualInvestorOP HardPrayer: As long as there are price differences to gain. You need to consider other factors such as trade fees to ensure overall profitability. For this example using options my profit is around 10% of my cost (2.71-2.44). For stocks the % profit will be way lower than the initial cost.
You will also notice the option price decayed due to time gradually at the later stage of the day. The overlay of the chart shows the gradual drift quite obviously due to the horizontal movement + time decay.
Any other question?
HardPrayer CasualInvestorOP: nope. thanks! just to clarify as it's difficult to profit from horizontal using normal buy sell. I need learn more about options to trade horizontal. give u a like
CasualInvestorOP CasualInvestorOP:
CasualInvestorOP HardPrayer: If your comfortable with option risk another strategy selling puts over a longer period works for horizontal stock price as well. But danger of margin call when fluctuations against you is high. My Apple option trade shows that strategy. Upward price action is a bonus but with my strike price at 150. My risk is lower in my opinion towards option expiry. (Naked puts are one of the most dangerous options trades as profit is lower than the risk!!!) I rely on fundamental analysis and geopolitical analysis more for this.