TheOptionPlayer.com Trading Guidelines and Suggestions

WE WRITE ABOUT

  1. Trade suggestions focus primarily on stock options, stock index options and options on exchange traded funds (ETF’s)
  2. Bullish (long) option trading strategies – buying calls, selling puts or other bullish plays
  3. Bearish (short) option trading strategies – buying puts, selling calls, or other bearish plays
  4. Trading time horizon is short-to-medium term, generally considered to be from approximately one to six weeks in length
  5. Selections are designed to be low risk trades with high profit potential and a defined target price
  6. Technical analysis is used to suggest a specific trade entry price and when to exit the position

 

THE CHART (see chart example down below)

The illustration is usually a candlestick stock chart with the graphics

  • 14-day Relative Strength Indicator (RSI) – at the top of the chart
  • Closing Price (Hourly, Daily, or Weekly)
  • 14-day Exponential Moving Average (EMA) – blue horizontal line
  • 50-day Simple Moving Average – MA(50) red horizontal line
  • 200-day Simple Moving Average – MA(200) green horizontal line
  • 20-day upper Bollinger Band (BB) level – upper solid purple line
  • 20-day Simple Moving Average – purple dotted line in the middle
  • 20-day lower Bollinger Band (BB) level – lower solid purple line

SPY Chart Sample

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