Options Trading Newsletter - Issue #91
STRATEGY IS A COMMODITY, IMPLEMENTATION IS AN ART...
STRATEGY IS A COMMODITY, IMPLEMENTATION IS AN ART.........
We all can learn anything from practically everywhere, especially in a world today where information is abundance. Recently there was a lot of talk about this AI tool ChatGPT where it can practically get many things you ask for in minutes, like write a book, a song, create a trading strategy or even write a computer code.
After a while testing and using it, it seems that if we just put in a request like "give me a best trading strategy", it will not come out with any answer for you but a nice message and advice.
So what we learn is always theory and what we put into practice are more the important. The more we do and the more we practice and learn from it, the better we can become. Until a stage where it becomes an "ART" and we can benefit from it. The same as a trader or even an investor, from strategy or stock selection, there are many factors that we consider before and even after the trigger event. All these would take time and effort to develop but once you have mastered it the benefits coming out from it is going to be life long. So the first thing is always keep an open mind and continue learning and then put to practice what you learned and improve on it until it becomes a skill and an art, priceless....
SPX - 3934
SPX is down 3.4% for the week. The market is still very cautious in economic data and last week's slightly positive economic data on ISM Services PMI and PPI has brought the market down as market want to see bad economic data to deter the Fed to continue an aggressive stance its interest policies.
Nevertheless, the SPX still held up above 3900 levels closing at 3934 last Friday. This week, we would expect to continue to see choppy markets until the CPI release on Tuesday and thereafter the Fed Fund Rate hike on Wednesday and then followed through with the Fed Chair's speech. Not forgetting the Retail Data also coming in on Thursday.
It's going to be a two sided event, perfect volatility for day trading... It's going to be a two sided possibility to breach above daily 200 MA above 4000 or back down below 50MA at around 3800 levels.
This week's trading range is 3850 to 4000.
NDX - 11563
NDX is also down 3.6% around 430 points for the week. It is now finding support at weekly 200 MA for the second week now.
VIX has gone up 10% for the week closing at 22.82 into the major event week. Nevertheless, the number was still significantly lower than the 35+ levels at the height of the uncertainties on Fed policies. That should be a good indication that the current levels have priced in a big chunk of these already. So if there are opportunities next week on long term investment buy ins, then we should take opportunity to cost average in. The last round we average into positions was AAPL (138), AMZN (89) and GOOGL (88). All are still above these levels but if markets fires down next week, we have opportunity for the second tranche in. You can access the tranche in template here.
This week's trading range is between 11,100 and 11,850.
HONG KONG OPTIONS
With the right options knowledge, you can practically trade it in any markets. Do you know options exist also in the Hong Kong markets and can be traded using similar strategies used for the US markets. The fundamentals are the same but as the options market is not as mature as the US markets, not all stocks have options. Besides that, each lot of option trade may not necessary represent 100 shares and some may be 500 shares or even 250 shares. Liquidity is another thing to consider when trading here. Brokerage fees tends to be more expensive as compared to the US market but also dependent on the broker used.
You can see the list of tradeable options and the lot sizes here.
If you are using Interactive Brokers, you should be able to trade provided you make the trading rights request for Hong Kong markets/options/futures. Just go to trading rights module and make the request and the approval should be quite fast within a day.
With the US Markets in doldrums, and the Hong Kong/China getting back alive, it may also be an opportunity to shift some of our portfolio back to this side of the world.
Tik Tok Videos
We started another content channel off Tik Tok. Follow-us on the channel so you will get notified of any videos posted. Also, share it with your friends our new channel. Follow here.
Long Trade on JD. Trade setup from Traders Talk 6 Dec 22 #optionstrading #tastyworks — www.tiktok.com TikTok video from Mystylework (@mystylework.trade): "Long Trade on JD. Trade setup from Traders Talk 6 Dec 22 #optionstrading #tastyworks". JD Long Trade | 6 Dec 22 Traders Talk | Like & Share ♥️. Lazy chill out, romance overseas celebrity, 10 minutes(1019319).
Trade Digest On XLE using Iron Condor #optionstrading #optionsstrategies — www.tiktok.com TikTok video from mystylework.trade (@mystylework.trade): "Trade Digest On XLE using Iron Condor #optionstrading #optionsstrategies". Iron Condor on XLE | Trading in Range Use A Neutral strategy | Iron Condor | .... Lazy chill out, romance overseas celebrity, 10 minutes(1019319).
5 ways to reduce cost of calls. The ultimate traders' guide. #optionstrading #optionsstrategies — www.tiktok.com TikTok video from mystylework.trade (@mystylework.trade): "5 ways to reduce cost of calls. The ultimate traders' guide. #optionstrading #optionsstrategies". 5 Ways To Reduce Cost Of Calls | options trading | traders | .... Lazy chill out, romance overseas celebrity, 10 minutes(1019319).
Trading options with 68.2% probability using Expected Move 😎 #optionstrading #trading101 — www.tiktok.com TikTok video from mystylework.trade (@mystylework.trade): "Trading options with 68.2% probability using Expected Move 😎 #optionstrading #trading101". Expected Move | How to trade options | trading options | .... Corporate Uplifting Inspirational Motivational Pop Rock Piano Violins Theme Song.
mystylework.trade (@mystylework.trade) on TikTok — www.tiktok.com TikTok video from mystylework.trade (@mystylework.trade). Butterfly Trade | How to setup low cost high returns options trade | Learn to trade options | .... Lazy chill out, romance overseas celebrity, 10 minutes(1019319).
Winning Options Strategies everyday. Creating high probability low risk trades 😎 #optionstrading #optionsstrategies #elonmusk @tastytrade — www.tiktok.com TikTok video from mystylework.trade (@mystylework.trade): "Winning Options Strategies everyday. Creating high probability low risk trades 😎 #optionstrading #optionsstrategies #elonmusk @tastytrade". Elon Musk | Stock trading | Another WIN 😎 | .... Sunrise.
Twitter shareholder's meeting for takeover by Elon Musk 13 Sep 22, 10am. Lets trade... #optionstrading #optionsstrategies @tastytrade — www.tiktok.com TikTok video from mystylework.trade (@mystylework.trade): "Twitter shareholder's meeting for takeover by Elon Musk 13 Sep 22, 10am. Lets trade... #optionstrading #optionsstrategies @tastytrade". select Nov 18 expiry | Sell ATM call strike 43 | recheck ATM price on open on Monday | .... TikTok's song-like tropical house(974524).
J.Powell's Message yesterday in 1 minute... @tastytrade #optionstrading #optionstrading #stockmarket — www.tiktok.com TikTok video from mystylework.trade (@mystylework.trade): "J.Powell's Message yesterday in 1 minute... @tastytrade #optionstrading #optionstrading #stockmarket". Fed Message??? 🏦 | Responsibility For Price Stability.... | Inflation Target | .... Suns.
What to expect for this week's market.. #optionstrading #optionsstrategies — www.tiktok.com TikTok video from mystylework.trade (@mystylework.trade): "What to expect for this week's market.. #optionstrading #optionsstrategies". SPX down 141 points (3.37%) last Friday after J.Powell speech | Monday another 27 points drop | but we see some slight support at 4000 level above daily 50 MA | .... Change My Mind.
Option Trade on JD - watchlist at last Traders Talk on 9 Aug. Closed today $922 profit 🤑 #optiontrading #tradingstrategy — www.tiktok.com TikTok video from mystylework.trade (@mystylework.trade): "Option Trade on JD - watchlist at last Traders Talk on 9 Aug. Closed today $922 profit 🤑 #optiontrading #tradingstrategy". Option Trade JD covered potential trade during 9 Aug Traders Talk Entry 9 Aug Exit 26 Aug Profit $922 | watch till end to see the trade we did 😉 | Option Trades Adjustments - Based on Price Actions | .... YOU'RE MY SUNSHINE.
Hawkish remarks by J Powell crushed the market - pullback expected until Next FOMC in Sept 21. Watch for key points raised #optionstrading #optionsstrategies — www.tiktok.com TikTok video from mystylework.trade (@mystylework.trade): "Hawkish remarks by J Powell crushed the market - pullback expected until Next FOMC in Sept 21. Watch for key points raised #optionstrading #optionsstrategies". Key Points For Traders | Here's what JP said.. | > rates will go up until inflation is down to 2% | .... Flip through.
TRADERS TALK
Send us an email @ support@mystlework.com if you have any questions and we can cover them during the show.
Review our past traders talk. Let more of your friends know about our show and let them benefit also. View Past Traders Talk here.
Follow-us so you will be notified when we go live! Follow and click on the notification button, so you will never miss a show.
Visit and follow us at our Facebook Page for more contents!
Access here >>Facebook Page<<
DISCLOSURES
Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options: https://www.theocc.com/components/docs/riskstoc.pdf
MYstyework is an Online Financial Literacy Educator and materials provided is solely by MYstylework and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, transaction or investment strategy is suitable for any person. Trading securities can involve high risk and the loss of any funds invested. MYstylework, through its contents, does not provide investment or financial advice or make investment recommendations. Investment information provided may not be appropriate for all investors, and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. MYstylework is not in the business of transacting securities trades or an investment adviser.