STRANGLE FOR PROFIT

Oct 29, 2020

This year has been one of the best to be a (smart) trader. We've had absolutely historic opportunities and I'm sure there's more to come. This little ascending wedge (abcde) could be creating an opportunity for a strangle (long & short). I have several strategies I follow for the other indices but I will occasionally play a strangle where I can see it going either direction. Personally, I may wait until (E) is tagged and will buy a long position in calls and hedge that position with puts. There are other ways to play the breakout but I prefer to buy at (E) and wait until a target is reached (up or down). I also like to use options that have a medium term expiry (5-6 months out) so decay and noise aren't too dramatic. Let's see what happens!

Oct 29, 2020

Note

I also prefer to chart the futures charts- I tend to find more accuracy in trends and divergences

Oct 29, 2020

Note

I'm watching a renko chart on DOW JONES futures- these look so similar.. I've been leaning more bearish but I wouldn't dismiss a blow off top either..

Oct 30, 2020

Note

so purdy

Nov 11, 2020

Note

Nov 24, 2020

Note

This was a very good trade. Identifying major pivots before big swings (up or down) is one of the best ways to put on a profitable strangle (long and short). I scaled out early as price moved up.. if I'd held from the bottom some of these calls 6x'ed. Strangles are a very good strategy when you see the potential for big swings (like a triangle) where price is going up or down.