Thanks a lot, t he 50/100/200 DMA is daily moving average or displaced moving average? I think you mentioned it somewhere but I forgot where... And MACD settings is standard or somehow different? Thanks
I am a new sub and i am intrigued by your method and willing to add to my trading (i am mostly a long term fundamental investor). Never looked at option flow like you do. It surely gives a big hint of direction.
I have some questions though:
1) selling put: in your example AMZN 85$ put for June is 1,5 meaning that if i am right (and put is cash covered) i make 1.7% return in 3 months (6.8% ytd). To get results like the ones you showed (20/30% qoq which are great) are you selling ATM puts ? Otherwise is pretty hard to find OTM put with significant return.
2) in your experience, also for index does option flow gives a good hint on direction ?
3) in your service are you also sharing your book to try to mirror your results ?
Thank you and keep going! I will defintely advise your service to lot of people if it works!
1) As I stated above, I utilize leverage. I post my open book everyday, you can see my holdings. I use leverage as I see fit within uptrends/downtrends. If you look back a few weeks ago I had multiple posts on removing all leverage because the SPY broke its uptrend. When we're in an uptrend leverage is fine, when we're not, I remove it. It's more of a game of pressing it when its time, and not when we're in a downtrend.
2) Index flow not so much because there is so much in both directions and many times its hedges. Individual names its easier to see unusual flow in smaller names which never see action or in larger names when I log 50 trades in a few months and we're looking at direction, it gives us more clarity that it isn't likely 35 unusual size call buys in there are hedges.
Hey James, great summary that answers most of my questions - thanks a lot!!
Not sure if you can edit the post but if you can add what is risk reversal and it’s significance, that would be great.
I do not include those anymore, they’re simply a combo trade of a put sold and call bought. I now log them separately for the sake of the database
Thanks James for the detailed explanation again. Is it also possible to post your chart settings on EMAs please. Thanks :)
Hey Simon. I use the 8/10/21 ema. The 50/100/200 DMA. The 100/200 SMA
Thanks a lot, t he 50/100/200 DMA is daily moving average or displaced moving average? I think you mentioned it somewhere but I forgot where... And MACD settings is standard or somehow different? Thanks
Displaced.
I am a new sub and i am intrigued by your method and willing to add to my trading (i am mostly a long term fundamental investor). Never looked at option flow like you do. It surely gives a big hint of direction.
I have some questions though:
1) selling put: in your example AMZN 85$ put for June is 1,5 meaning that if i am right (and put is cash covered) i make 1.7% return in 3 months (6.8% ytd). To get results like the ones you showed (20/30% qoq which are great) are you selling ATM puts ? Otherwise is pretty hard to find OTM put with significant return.
2) in your experience, also for index does option flow gives a good hint on direction ?
3) in your service are you also sharing your book to try to mirror your results ?
Thank you and keep going! I will defintely advise your service to lot of people if it works!
Good morning.
1) As I stated above, I utilize leverage. I post my open book everyday, you can see my holdings. I use leverage as I see fit within uptrends/downtrends. If you look back a few weeks ago I had multiple posts on removing all leverage because the SPY broke its uptrend. When we're in an uptrend leverage is fine, when we're not, I remove it. It's more of a game of pressing it when its time, and not when we're in a downtrend.
2) Index flow not so much because there is so much in both directions and many times its hedges. Individual names its easier to see unusual flow in smaller names which never see action or in larger names when I log 50 trades in a few months and we're looking at direction, it gives us more clarity that it isn't likely 35 unusual size call buys in there are hedges.
3) every day
Thank you for this!