Hi Peace, Here's the Plan philosophy
This part of the Plan is not in the iBox as it is just kind of a loose philosophy that we use. Whenever the market is Above the 320SMA the Plan is Bullish. In an Uptrend we look to buy Calls whenever the markets tests the 320SMA and finds Support. We Might pick up some Puts whenever the market is too far above the 320SMA, usually 150-200 points above, but only for the move back down to the 320SMA where we watch to see if the Support will Hold. If the Support Holds then we sell the Puts and pick up the Calls on the retest of the 320SMA. Buying Puts in an Uptrend is always Risky due to the bounces back Up from the 320SMA. The philosophy on a Downtrend is the Opposite. We use the move back up to the 320SMA to buy Puts as long as the Resistance Holds. That was where the markets moving Above the 320SMA last Wednesday and finding Support should have been when we switched from Bearish to Bullish and started looking at Calls. Whenever the market is near the 320SMA the Support or Resistance needs to be looked at again. Until we move Below the 320SMA and it becomes Resistance and sends the market Down then the Plan will continue to be Bullish. You might not be able to capture the Best pricing on the Put contracts but it would be the Safest trade. The other thing to look at is the Inclining 320SMA, that is Bullish. I would not be thinking Puts will be very Safe here until we start to get a Flat to Declining 320SMA and the markets are finding it as Resistance. This is just a loose philosophy that we follow with the Plan but in the Past it has made for the Best and Safest trades. Whenever I trade Against this philosophy I most always Lose.
Something to think about. We do have a Potential MACD Negative crossover here though so your Put strategy Might be a good one.
Good Luck Peace! Sincerely, Bob :^)
Good Luck to All! :^)
PLAN the TRADE and TRADE the PLAN!
Good Luck to All! :^)
PLAN the TRADE and TRADE the PLAN!
