I'm trying something new here with these option case studies. Let me know what you think via the comments section after watching the videos because I'd be more than happy to make more.
Adding a suggestion of what you'd like to see would be helpful too. . .
Strangles = A Pure Volatility Play
WE RECOMMEND THE VIDEO: O G BINARY AUTO BOT LIVE AUTOMATED TRADING
Get o. G binary bot #420 with high propability to make profit suitable for short-term tradin! Recommended capital= $100 ...
Strangles are simply two naked options, both call and put, surrounding a stock with extremely high volatility. The absolute key here is: extremely high volatility.
Without this element, there is not strange play - period, end of story! Don't try to "fit" the stock into the strategy because it won't work out over time.
Start The FREE Course on "Options Basics" Today: Whether you are a completely new trader or an experienced trader, you'll still need to master the basics. The goal of this course is to help lay the groundwork for your education with some simple, yet important lessons surrounding options. Click here to view all 20 lessons ?
In this case study video, I'll show you exactly how to find out if the volatility is high enough for this strategy. Plus, I'll cover one stock that is possibly one of the best candidates I've seen in months for a strangle trade.
Here are some key points to remember from the case study:
1) Only trade on Stocks with implied volatility higher than its 70th percentile.
2) The higher returns mean allocating more money towards the trade. But limit your positions to 2-3 strangles at a time so you can properly manage the risk.
3) Adjustments will be needed and are best when you roll down/up the untested side to "re-center" the strategy.
4) Close the strangle once volatility collapses, don't hold until expiration if you don't have to.
What Did You Think?
First case study down.
I know there is a lot more to come but what did you think? Was it helpful or not? What was missing or what did you like best?
Tuesday, November 17, 2020