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Option and Stock Trading with sdh

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Last Post: 7/28/2014 5:10:19 AM - Followers: 266 - Board type: Free - Posts Today: 0


Disclaimer:   Any investment idea or strategy posted by any "Board Member"  is not a recommendation to enter into the investment or any sort of guarantee that strategy may work, nor is he/she qualifed to give investment advice in any shape or form.  This disclaimer generally goes for any poster on this message board unless they explicitly disclose otherwise.

Option and Stock Trading with sdh

Thanks for visiting my board.  The primary focus of this board is for discussion of stock, option, or ETF plays.  We look for breakout/breakdown setups which allows us to play them intraday, daily and weekly time after time.  We are looking for technical indicators that tell us when to enter and exit these plays.  The plays should have good liquidity to allow easy enteries and exits.

We are also interested in any plays that have news, earnings or have other catalyst events that make them attractive plays.

What we are not interested in:

- Any posts on OTC/Pink stocks will be removed.

- Bragging about trades you made or are currently in is totally unacceptable. We're happy you're making money, but really we don't give a shit. 

- If you come to this board to promote yourself, your website, or whatever it is you're doing, then sdh will give you a swift boot and delete your posts. Again, we just don't give a shit.

We appreciate visitors and members who are willing to put technical information at the top of their list when sharing trades with others. The goal is to help new and experienced traders find solid, consistent, good returns plays and technical information to help them enter/exit those plays.  Please take a look around and enjoy! 

Track your account:

Trading is a business.  If you are not producing gains on a regular basis, you need to review your trading strategy.  Some traders focus on win/loss ratios and that is not necessary.  Bottom line is what matters. The goal is to end the week with more than you started with.  Transfer those gains and play with the same money over and over.  Trade smart, take profits, rinse and repeat.


Date Transfer
01/03/14 $0
01/10/14 $2,639
01/17/14 $2,600
01/24/14 $6,013
01/31/14 $4,731
02/07/14 $3,154
02/14/14 $2,046
02/21/14 $2,978
02/28/14 $4,191
03/07/14 $3,516
03/14/14 Spring Break
03/21/14 $5,848
03/28/14 $0
04/04/14 $5,025
Total $42,741


Date Transfer
06/07/13 $1,525
06/14/13 ($195)
06/21/13 ($480)
06/28/13 $0
07/15/13 $713
07/12/13 $1,480
07/19/13 ($318)
07/26/13 $1,745
08/02/13 $768
08/09/13 $2,408
08/16/13 ($141)
08/23/13 $1,419
08/30/13 $2,142
09/06/13 $1,503
09/13/13 $1,733
09/20/13 $1,767
09/27/13 $1,143
10/04/13 $2,246
10/11/13 $1,726
10/18/13 $1,210
10/25/13 $904
11/01/13 $1,490
11/08/13 $4,538
11/15/13 $1,890
11/22/13 $679
11/29/13 $4,073
12/06/13 $899
12/13/13 $2,443
12/20/13 $0 *
12/27/13 $0 **
12/31/13 $1,095
Total $40,405

2013:  Per spreadsheet listed above = $40K for 7 months

2014:  Goal #1: Let's try for $48K by June 1st, 2014.  Will review/submit Goal #2 in the summer.

Note:  * 12/20/03:  Hold SODA stock position. ** 12/27/13: Made $1,019 on WPRT, but used it to offset SODA option loss from 12/13.


Daily Options Traders:

Board Favorites:



Options Screeners, Leads & Tools:

Unusual call/put volume:  http://www.schaeffersresearch.com/streetools/filters/volume_exp.aspx

Half Hour High Volume Report:  http://www.cboe.com/data/HHVolumeReportEquity.aspx

Earning Calendar:   http://www.earningswhispers.com 

High Short Float Stocks Sreener: http://finviz.com/screener.ashx?v=131&f=ind_stocksonly,sh_avgvol_o500,sh_price_o10,sh_short_o30&ft=4&o=-shortinterestshare

Option Screener:  http://finance.avafin.com/options 

Option Calculator:  http://www.cboe.com/framed/IVolframed.aspx?content=http%3a%2f%2fcboe.ivolatility.com%2fcalc%2findex.j%3fcontract%3dE28820B4-0B9C-45FB-B060-F955A530518C§ionName=SEC_TRADING_TOOLS&title=CBOE%20-%20IVolatility%20Services 

The Smart Trader - Charts and Info:    http://t.co/l8pOIeyj


Assessing premium risk versus reward

Premium risk on a high priced option can take profits away from you if an expected large movement in the stock is priced in.  When price doesn't move enough, share price can go up but opton price can go down.  A quick formula to assess premium risk is:

Premium = Option Price + Strike Price - Share Price

This should be less than the expected movement in share price during the options time fame.

ETF Exchange Traded Funds

Exchange traded funds are a great way to start understanding the value of options without having to play them and is a great way to leverage any non-option trading account.  These funds will allow you to work on your timing from the bulls markets to bears bear markets and back again and also allow you to be actively trading when the market is a bear run.  These ETF will also allow you to play some of the major sectors that tend to cycle up and down with event like oil, financial, gold and silver to name a view.  With the way they are setup if a sector moves up 1% a 2x will move 2% and a 3x will move 3%.   Let say oil has a bull move of  5% then the bull 2x oil ETF 2 would move apporxamatly 10% and the bull oil 3x would move 15%.  Now the inverse move would happen on the bear oil funds.  The oil bear 2x would be down 10% and the 3x would be down .

Like any investment please take the time to understand them and their powers.  Charting will be very important in making sure you are on the side of the during a bull or bear fund.  Take the time to watch them or paper trade them to help you get a better understanding of how they work and the risk/rewards they can have.

To know more about ETF's check the ETF link below and for more information on each individual please use your search engines to find out more about them and what they are based on.

ETF: http://en.wikipedia.org/wiki/Exchange-traded_fund 
Other ETF funds: http://3xetf.com/



Market ETF
Index Charts Bull Funds (Up Trends) Bear Funds (Down Trends) ETF Ratio Options Available

Energy ETF
Index Charts Bull Funds (Up Trends) Bear Funds (Down Trends) ETF Ratio Options Available

Financials ETF
Index Charts Bull Funds (Up Trends) Bear Funds (Down Trends) ETF Ratio Options Available

Gold ETF
Index Charts Bull Funds (Up Trends) Bear Funds (Down Trends) ETF Ratio Options Available

Gold Miners ETF  
Index Charts Bull Funds (Up Trends) Bear Funds (Down Trends) ETF Ratio Options Available

Housing ETF
Index Charts Bull Funds (Up Trends) Bear Funds (Down Trends) ETF Ratio Options Available

Natural Gas ETF  
Index Charts Bull Funds (Up Trends) Bear Funds (Down Trends) ETF Ratio Options Available

Index Charts Bull Funds (Up Trends) Bear Funds (Down Trends) ETF Ratio Options Available

Silver ETF
Index Charts Bull Funds (Up Trends) Bear Funds (Down Trends) ETF Ratio Options Available

Tech's ETF
Index Charts Bull Funds (Up Trends) Bear Funds (Down Trends) ETF Ratio Options Available


Trading w/Technicals   (Some setups based on technical analysis used by board members)

Generally the idea is to use a sound chart setup to enter into a leveraged position using options or an ETF.  Time frame matters:

1. Use a 10 min timeframe or less for intraday trading (weekly options.)
2. 60 min for multiday hold
3. Daily chart for positions lasting a few days to a week or more (monthly options.)

This is not intended to be a detailed discussion on technical analysis, but some setups used successfully by traders on this board are discussed below:

Inflection Pattern Intraday Trading

The inflection is a general candle pattern where for a top the high of the middle candle is higher than the highs of the adjacent candles and the low of the middle candle is higher than the lows of the two adjancent candles. Visa versa for a bottom. You can extend to 4 candles, but that might be dangerous and lead to subjectivity. There is a decent probability this marks a turn according to Cycle News and Views. While you can trade both ways during a run, it makes sense to stick with uppers during an up trend and downers during a down trend (In the example below may be wise to skip the one downer signal.)

With day trading, it's a good idea to have a tight stop, but a mental stop, e.g., you need to watch and not show the market with a stop order. If the inflection is compramised, a good indication that the inflection was not true you and you should stop out (along with any other preferences one might have for a stop loss.) This comes from Perfect Stock Alert (no longer out there so perhaps no so perfect...) They like to add a penny or two to the stop.

Putting these two together is my bread and butter SPY intraday trade. Suppose you can apply this to any stock to trade options, but I believe it works best with the SPY and QQQ.

I generally like to play this using a 15 minute chart.  Occasionaly play it on a 5 minute chart, but the extra noise tends to whip you out and produces excessive inflection patterns, and ultimately has produced mixed results.

Taking profits is always a tricky situation and it's good to set targets.  Basically I like to let things run while on the right side of a fast EMA (10 or even a little faster.)  Also, identifying lines of support or resistance and current channels are good places to take profits as the bouces there can be fast and furious.  But then again it may a good idea to wait a candle or two and see if she can go some more.  Using the fast EMA of your choice may be good for this purpose.


Trend Reversal Candlestick Patterns

Engulfing Pattern:  A reversal pattern that can be bearish or bullish, depending upon whether it appears at the end of an uptrend (bearish engulfing pattern) or a downtrend (bullish engulfing pattern). The first day is characterized by a small body, followed by a day whose body completely engulfs the previous day's body.
Engulfing Pattern Candlestick example image from StockCharts.com

Evening Star:  A bearish reversal pattern that continues an uptrend with a long white body day followed by a gapped up small body day, then a down close with the close below the midpoint of the first day.
Evening Star Candlestick example image from StockCharts.com

Morning Star:  A three day bullish reversal pattern consisting of three candlesticks - a long-bodied black candle extending the current downtrend, a short middle candle that gapped down on the open, and a long-bodied white candle that gapped up on the open and closed above the midpoint of the body of the first day.
Morning Star Candlestick example image from StockCharts.com


Adam and Eve Chart Pattern

It has a very sharp and deep first bottom on high volume (Adam) forms a V pattern. Then the stock bounces high into the center and develops a longer and more gentle, rolling second bottom (Eve) on relatively low volatility. Price action then constricts into a tight range and the stock breaks strongly to the upside.  As seen on the chart this pattern can work in the inverse direction.  For more information please read the book Master Swing Trader by Alan S. Farley.


Bollinger Band/RSI Extreme

Extreme oversold or overbought stituations are an area swing traders look for action, but can be dangerous as many times stocks keep running.  When the BB is in an extreme (greater than the 2 standard deviation, of even 2.5 or 3 standard deviation for an even more extreme situation), and the RSI is over 70, then the odds for a reversal may increase:

Note: In the example above, there was a long wick on the big candle up.  Also, the following candle failed to make a new high, but traded in the upper half of the previous candle.  These are also good conditions for a possible reversal.


ADX/MACD Pinch Plays


3-Minute MACD Chart Play

This play uses a basic MACD indicator to enter/exit the trade.  You want to see volume and option movement.  You can begin watching the play on a 1-minute chart and move to the 3-minute for confirmation.


SPY ~ Daily Chart


Learning Options Trading Links

Options Basic 101

Lesson 1:       http://www.youtube.com/watch?v=is5Whul7KUg&feature=related

Lesson 2 :     http://www.youtube.com/watch?v=KSgmKpO9g54&feature=related

Lesson 3:      http://www.youtube.com/watch?v=3UEDnTzhT5U

Lesson 4:     http://www.youtube.com/watch?v=Xm_71C_Jpcc

Lesson 5:      http://www.youtube.com/watch?v=EyUcGpMf264&feature=related  

Lesson 6:     http://www.youtube.com/watch?v=X30liTarSwk&feature=related

Lesson 7:     http://www.youtube.com/watch?v=n4uqBy9i0Ds&feature=related

Spreads:        http://www.youtube.com/watch?v=mFUfxGv2wC0&feature=related

Disclaimer:  Any investment idea or strategy posted by any "Board Moderators"  is not a recommendation to enter into the investment or any sort of guarantee that strategy may work, nor is he/she qualifed to give investment advice in any shape or form.  This disclaimer generally goes for any poster on this message board unless they explicitly disclose otherwise.

#48672  Sticky Note Trading Links: Review the market's action here: sdh 09/29/13 10:25:47 AM
#41742  Sticky Note Economic Data link: sdh 04/27/13 01:00:30 PM
#51652   Sounds Wonderful! Very HaPPy for ya lady!!! stuffit 07/28/14 05:10:19 AM
#51651   Welcome back .... :-D beachcomber1 07/27/14 06:44:40 PM
#51650   TRADER RADAR the WEEK AHEAD ECONOMIC AND EARNINGS sdh 07/27/14 12:50:26 PM
#51649   Earnings Preview for the week of July 28 sdh 07/27/14 12:49:23 PM
#51648   was an awesome trip.....in fact.....having 'I'm back from sdh 07/27/14 12:45:57 PM
#51647   Almost forgot about that! WaHooo, GOOD for You! stuffit 07/20/14 05:57:48 AM
#51646   Lol. I'm over it. I'm done responding to beachcomber1 07/19/14 08:57:19 PM
#51645   Lady gaga tonight....see you're been stalked on the sdh 07/19/14 08:49:56 PM
#51644   Hi sdh. Hope your trip in Vegas is beachcomber1 07/19/14 08:33:25 PM
#51643   Hi stuffie!..... I'm in Las Vegas right now...... sdh 07/19/14 03:17:04 PM
#51642   ~~~< Waving~~~, as I fly by here!!! stuffit 07/19/14 03:09:37 PM
#51641   G/M to You! Nice to see ya... stuffit 07/08/14 09:03:48 AM
#51640   Futures -21 sdh 07/08/14 08:21:46 AM
#51639   yes! coffee is necessary! sdh 07/08/14 08:17:15 AM
#51638   frontrunning: America’s Role as Consumer of Last Resort Goes sdh 07/08/14 08:16:54 AM
#51637   All is good here. Still trying to get beachcomber1 07/08/14 08:16:33 AM
#51636   data: NFIB Small Business Optimism Index sdh 07/08/14 08:15:48 AM
#51635   up/down grades: http://www.benzinga.com/calendar/ratings sdh 07/08/14 08:15:25 AM
#51634   hi bc.....up early for Alex's horse lessons..... sdh 07/08/14 08:15:00 AM
#51633   Long time, no see. Good morning sdh! beachcomber1 07/08/14 08:13:11 AM
#51632   Pre Market Movers sdh 07/08/14 08:13:09 AM
#51631   TRADER RADAR for week of 7/7 to 7/11 sdh 07/08/14 08:12:05 AM
#51630   good morning sdh 07/08/14 08:11:33 AM
#51628   data: ICSC-Goldman Store Sales sdh 06/24/14 08:06:57 AM
#51627   Frontrunning: The Kerry Konfusion Kontinues: Kerry urges Kurds to sdh 06/24/14 08:04:56 AM
#51626   Pre Market Movers sdh 06/24/14 08:02:43 AM
#51625   futures -23 sdh 06/24/14 08:01:39 AM
#51624   it really is! hope you are feeling better! sdh 06/24/14 08:01:08 AM
#51623   Earnings Preview for the week of June 23 sdh 06/24/14 08:00:31 AM
#51622   TRADER RADAR FOR WEEK OF 6/23 to 6/27 sdh 06/24/14 07:59:54 AM
#51621   good morning sdh 06/24/14 07:59:23 AM
#51620   Welcome to Summertime, and the HEAT is on! stuffit 06/21/14 02:23:39 PM
#51619   data: FOMC Meeting Begins sdh 06/17/14 08:05:51 AM
#51618   frontrunning: sdh 06/17/14 07:56:51 AM
#51617   Pre Market Movers sdh 06/17/14 07:53:19 AM
#51616   Futures +18 sdh 06/17/14 07:52:09 AM
#51615   horse lessons this morning sdh 06/17/14 07:52:03 AM
#51614   good morning sdh 06/17/14 07:51:38 AM
#51613   lol sounds good, well got to run see BULLET 06/14/14 07:27:53 PM
#51612   I usually make alot of crap trades mon-wed. johnsou 06/14/14 07:11:18 PM
#51611   yea they usually pin or run flat, or BULLET 06/14/14 07:09:55 PM
#51610   Yeah. Those are the fun days. Mon-wed suck johnsou 06/14/14 07:01:56 PM
#51609   scalped appl last friday for 1000 about an BULLET 06/14/14 06:59:27 PM
#51608   I like thurs and fridays. Alot of fun johnsou 06/14/14 06:56:58 PM
#51607   I usually play on friday as alot of BULLET 06/14/14 06:49:38 PM
#51606   Yeah. I had plenty of stuff die johnsou 06/14/14 06:14:16 PM
#51605   lost money on that one.....started to ramp eod BULLET 06/14/14 06:08:57 PM
#51604   Exactly!~ stuffit 06/14/14 05:34:07 AM
#51603   Nice to see you around!~~~~~~~~~~~~~~~~~ stuffit 06/14/14 05:28:48 AM
#51602   I only checked the closing price. I johnsou 06/13/14 07:52:26 PM