VZ trade The VZ April 36 Call is at 1.10. In the video, Dan said it was at 1.40. I think he was looking at the May 36 Call. The new trade is on the May 37 Call.
How does one find option trades? Dan talks about how if he can’t find an option trade that he’s willing to take he’s not going to recommend any to OMM members. So how would I go about searching for good option trades?
Richard – Finding Trades – Option trades can be made on most stocks or indices that you would trade shares on.
Dan is waiting for High Probabilty trades where a few (or several) factors have come
together at one time to raise the odds of the trade being successful. In the case of the VZ trade, if you listen close to
Dan you will hear about the coiled spring or wedge pattern, this usually resolves to the upside in a bull market. Dan
includes the factor of an announcement coming out in the news soon. He shows you the consolidation pattern. He notes
the impending volatilty squeeze. He realizes that this sector and stock has been strong recently, and particularly
resilient to a pullback with the rest of the market. The timing for the VZ trade is favorable. If you can find a stock with a
confluence of positive factors, buy a couple calls and watch it closely. If you get a nice move in your favor, take profits.
When we shift to a bear market, you will be looking for stocks with a negative confluence of factors. IMHO
Presently, I can olnly purchase an option in 2 ways, open to close or sell to open. Can any explain what this means? Am I correct to assume I can not carry out Dan’s trades until Fidelity approves my account for a more agressive goals. Thanks for any info. I am a beginnger in trading options.
If you are a beginner trading options, then Dan’s video #5 says to all beginners to paper trade only while you learn, watch and build an understanding. Especially if you are unfamiliar with how to place a trade, any trade.
You can only buy to close and sell to open becaue you are only allowed to write covered calls. You must own the stock and then can “sell to open” contracts against it. Then, if you wish, you can buy back the contracts by “buying to close”. If you want to be able to buy calls or do spreads, you need to tell them that you have some experience trading options (fill out the online form again).
I think I will wait before placing the VZ trade. If we get a “three day rule” pullback, it may be more prudent to get into the VZ 35 or 36
strike calls. I am saying this because of the futures this morning being heavily red in color. You may get the 37’s for half price, but
is this the trade that Dan had in mind? Can’t say.
@Dan – I like the path of focusing on identifying good trades rather than you feeling forced to find something for the members. I once heard a wise man say, “Do you really want to live in the best house in a crappy neighborhood?” I am definitely here to learn and exchange ideas; something I find invaluable on SMM. I would like to spend more time understanding strategy and executing well.
Yesterday morning before I saw this, I actually re-entered a position on VZ APR $36 @ 1.00 and VZ MAY $36 @ 1.33. I debated the $37 but honestly decided on the $36 because I felt better about having that .44 in the money at the time I hit buy. My theory being I may get battered around a bit, but as long as I’m bouncing within tightening Bollinger Bands then I’m fine. Positioning for an expansion. Am I thinking correctly?
Nice to see the discussion about the 36 strike, no i don’t feel like the lone ranger. With the down move today i also decided to give the 36 strike a try.
Fred
Break of the 50 DMA on high volume has me a little worried. I can’t find any Verizon specific news. Is it just Japan and the market generally? Ideas anyone.
VZ trade The VZ April 36 Call is at 1.10. In the video, Dan said it was at 1.40. I think he was looking at the May 36 Call. The new trade is on the May 37 Call.
How does one find option trades? Dan talks about how if he can’t find an option trade that he’s willing to take he’s not going to recommend any to OMM members. So how would I go about searching for good option trades?
Richard – Finding Trades – Option trades can be made on most stocks or indices that you would trade shares on.
Dan is waiting for High Probabilty trades where a few (or several) factors have come
together at one time to raise the odds of the trade being successful. In the case of the VZ trade, if you listen close to
Dan you will hear about the coiled spring or wedge pattern, this usually resolves to the upside in a bull market. Dan
includes the factor of an announcement coming out in the news soon. He shows you the consolidation pattern. He notes
the impending volatilty squeeze. He realizes that this sector and stock has been strong recently, and particularly
resilient to a pullback with the rest of the market. The timing for the VZ trade is favorable. If you can find a stock with a
confluence of positive factors, buy a couple calls and watch it closely. If you get a nice move in your favor, take profits.
When we shift to a bear market, you will be looking for stocks with a negative confluence of factors. IMHO
Presently, I can olnly purchase an option in 2 ways, open to close or sell to open. Can any explain what this means? Am I correct to assume I can not carry out Dan’s trades until Fidelity approves my account for a more agressive goals. Thanks for any info. I am a beginnger in trading options.
@sue open to close doesn’t exist. If you mean buy to open, that’s all the approval you need to buy this call
If you are a beginner trading options, then Dan’s video #5 says to all beginners to paper trade only while you learn, watch and build an understanding. Especially if you are unfamiliar with how to place a trade, any trade.
You can only buy to close and sell to open becaue you are only allowed to write covered calls. You must own the stock and then can “sell to open” contracts against it. Then, if you wish, you can buy back the contracts by “buying to close”. If you want to be able to buy calls or do spreads, you need to tell them that you have some experience trading options (fill out the online form again).
I think I will wait before placing the VZ trade. If we get a “three day rule” pullback, it may be more prudent to get into the VZ 35 or 36
strike calls. I am saying this because of the futures this morning being heavily red in color. You may get the 37’s for half price, but
is this the trade that Dan had in mind? Can’t say.
@Dan – I like the path of focusing on identifying good trades rather than you feeling forced to find something for the members. I once heard a wise man say, “Do you really want to live in the best house in a crappy neighborhood?” I am definitely here to learn and exchange ideas; something I find invaluable on SMM. I would like to spend more time understanding strategy and executing well.
Yesterday morning before I saw this, I actually re-entered a position on VZ APR $36 @ 1.00 and VZ MAY $36 @ 1.33. I debated the $37 but honestly decided on the $36 because I felt better about having that .44 in the money at the time I hit buy. My theory being I may get battered around a bit, but as long as I’m bouncing within tightening Bollinger Bands then I’m fine. Positioning for an expansion. Am I thinking correctly?
Nice to see the discussion about the 36 strike, no i don’t feel like the lone ranger. With the down move today i also decided to give the 36 strike a try.
Fred
I am still long the last VZ trade and did not add to it. I think based on the market action I will wait and see… Sounds good though.
I am still long the VZ april 36 call that I bought 3/1 for 0.95. Observing the market for now, but I do have a low ball bid for VZ May call.
Looking like a failed trade to me.
Broke both the 50da and previous low, next stop 100da MA?
Hope is not a trading strategy.
Break of the 50 DMA on high volume has me a little worried. I can’t find any Verizon specific news. Is it just Japan and the market generally? Ideas anyone.