Swing Trading (Days to Weeks) | 4-30-19
Good. Morning, everyone this is barb Armstrong, coming to you live from a sunny Salt, Lake City, today. Is the last day of April April, 30th, this is swing, trading, days, two weeks I am happy to be filling in for John McNichol today so, if you are looking for an hour jam-packed. With. Application. With placing. Swing trades managing. Swing trades so short term days to weeks type strategies, you're absolutely, in the right place lots. Of exciting things to cover today so let's, get right down to it. Ha. Right good, morning, as, I said, moments ago I am filling in for John McNichol today who is a way on active, duty as many of you know he, leads somewhat, of a double life, he. Gets to spend a lot of time here with us at TD Ameritrade and. Then, he, is actively, involved, in the military and so the. Next two weeks he will be gone doing that and I will have. The privilege of filling, in for him for this. Class and I know he teaches many and we've got a lot of coaches here helping. Cover the. Big shoes that John leaves for us to fill so, we, have lots of great information to, cover today I know this is a highly attended class oh and very, interactive also. So thanks to Diane and Scott and cliff and Michelle, and basil, and Yee. For all, typing. In greetings this morning, yes. Google. I've felt. A bit like humpty-dumpty last, night, although. I'm sure that the king's men can, put him, back together again. Not. Quite sure what, kind of timeframe but we can we, can have a look at that so let's get to our important, information. And then we can get right down to business. Okay. Options, are not suitable for all investors as, there are special, risks inherent to options, trading, that can expose investors, to potentially, wrap it in substantial, losses you, may want to grab and read a copy of the characteristics. And risks, of standardized, options, spread. Straddles, and other multi leg option strategies, can entail substantial, transaction, costs including multiple Commission's. Which, can impact your returns. These. Are advanced option strategies, often, involve greater more complex, risks than single leg option strategies. In. Order. To demonstrate the functionality of the platform, we need to use actual symbols, and we do however. This is not to be construed as a recommendation on the part of TD Ameritrade, or myself we, cannot begin to determine, the suitability of, any, security, or strategy. For an individual, trader any investment. Decision you in your self-directed, account, is solely. Your, responsibility. You. You, want to take transaction, cost Commission's and other fees into. Account when evaluating any trade, if you place a trade online with TD Ameritrade, at 6.95, for a stock order 6.95. For an option order plus, a 75, cent per contract fee if. You. End up exercised, or assigned that's, of a. $19.99. Flat. Write the, paper money, application. Is for educational, purposes only just. Because you can trade like a ninja in your paper money in one time period when you go to your live account you, may not have the same results, why because, the market continues, to change past. Performance. Of any security, or strategy, doesn't guarantee future results or.
Success. How. We, wish it was otherwise right but it's not all, investing, involves risk including the risk of loss and while this webcast, discusses, technical, analysis, other approaches, including fundamental, analysis, can provide a different perspective. Please. Know that if we're using probability. Analysis, and back testing. These. Are theoretical, in nature they, aren't guaranteed and they don't reflect, a degree, of certainty of an event occurring no, soliciting, no photography, and no part of this presentation may. Be copied, recorded. Or rebroadcast. Without. The prior written consent of TD Ameritrade and we don't need to do that do we because these are all archived. And available for, your viewing and, reviewing, pleasure so. There, we go good, morning to chalk in to Wayne and to. Everybody who's on, that hasn't. Typed. Into the chat so glad you're all here and whether you're here. Live or, attending. This as an archive, session, later I applaud. Each and every one of you for. Investing, in your financial future by taking the time to participate in webcasts, like these for. Those of you who, may not know me I joined. TD Ameritrade, back in 2011. And, I. Came, in as a client, and as, a, student. Of the SEC I really wanted to take advantage of all the amazing education. That TD. Ameritrade, had to offer and I, jumped, in with both feet and now here I am on the other side of the lens and, really. Passionate, about helping people. Master. This stuff or do you know attain a degree of mastery, I've got the Greeks up right now and while we certainly don't have to learn another language I, know that this is an intermediate, level class and that you guys are familiar with Delta. Gamma Vega and theta in other words how price time and volatility. Can, impact. Our. Trading. Particularly. When it comes to options, okay. So as, I said this is an intermediate, level class, so. If you, are not, familiar. With, trading. Options, there, is an intro to trading options class on Fridays, at 11:00 a.m., taught by well. Taught by yours truly actually. And. We cover that in about an 11 week rotation, so you may want to focus on more the directional. Trading. Strategies, which is more of what we do here, so. Long. Calls and long, puts in this, class we also cover, credit, spreads and debit spreads or you, know short put verticals. Long. Call verticals, you. Know and then short and long. Yeah. Anyway, short and long call verticals, and John, McNichol also does a class on verticals, that isn't, the focus of this class but. I'm we. Approach this class with an understanding, that you've got a basic understanding of, options, basic. Understanding, of trading stocks and also a basic understanding of, technical analysis, and if, your technical, analysis, skills aren't, quite, at ninja, status. There, are two classes, a week and we talk technicals, in a lot of our, 40-some. Webcasts, that we teach every week but Cameron, made as a class on Mondays, at 11:00 at the Mondays.
At 11:00 it's a half hour class getting. Started with technical, analysis, and charting essentials, and then, on Fridays. Pat Mullaly teaches. The. Ninja class if you will the advanced charting, techniques so if you'd like to hone your skill, there. You. Know that's on Fridays, at, two, o'clock Eastern, and both, of those are archived. Classes. So having. Said that let's, get over to the platform, and so, what, is the goal of today's class well at the end of today's class I want everyone. To feel. That they've enhanced. Their comfort, level with identifying. Setups, for swing, trades in placing. Trades on your paper money, thinkorswim. Platform and. Also. I want. To talk a little bit about what. I call mid, management. Strategies. Because, when. We look, at at. Doing. Swing, trading, a lot, of people are very solid. On when, they want to get into a trade and they, know what, setups, they're looking for to get in and then, they set a target, on, when. They want to get out and they and they have a plan on that and they also have. A stop so if the trade goes against them they know when they're getting out they, know when they their, target, is to get out but, this what, happens, in the middle sometimes if, it doesn't quite get to your target and it doesn't stop you out I just want to be sure that that, everybody. Has some, thoughts or some guidelines. Around how. They're going to manage the trade until, it, hits one or the other so. So. That's. Our goal for today to increase. Your comfort level with trading, and these. Strategies and, to. Make. Sure that your guidelines. Include. Some middleman, as management. Strategies. We're, going to review, the broad. Markets, just at the open and then we're going to go out and start looking at one. Trade, some trade setups we're gonna play some trades in our paper money account, and then, we're going to look at how. To find these, setups also, which given it's an intermediate class I'm sure that most of you are already pretty, well-versed in that world so. Let's. Just, I was checking things out before the market opened looking at some of the futures, contracts, and how things traded overnight so it looks like the. Jacque is opening, a little lower but, now that we are. In. The, day we can see and. Actually. Let's just go, to the MDX, we'll start with the S&P 500 and, you. Know this is a six-month, chart. But we can see since, December. 24th, that. You know we've had a pretty bullish, uptrend. And although it's, pulling. Back a little bit today we're just at the market open and you.
Know We're still well, above the, 10. 10. Day moving average, so. You, know since the beginning of the year. And. Again I'm sure you guys are all over, these stats, being, an intermediate, level class you know we're up 25%. Basically. Since the 25th, of December. Okay. Now the Nasdaq. So. Again you, know hundred. Stocks, tech-heavy. No. Financials. And looking. Pretty similar isn't it. Now, one of the differences if we come out to a. One-year, I mean we have now hit. An. All-time high as, of four days ago and we're just pulling, back a bit but a pretty, steep trajectory, on. The. Nasdaq, also. And. You know if we come out and look, at the SPX, the same thing yesterday, we had a new all-time. High and if we come back and you know we put this in perspective there's, a five-year, view. We. Look at the Russell. Which. Many consider to be kind of like the canary in the coal shaft I mean, this one of all, the major indices. Is the, one that has not, yet. Fully. Recovered. The. Pullback that we, saw in the fourth quarter so you, know it's it's over, halfway, there of course this is a five-year chart, and. At. The moment, it looks like it's coming and kind of budding its head up against. A resistance. Level here so. You. Know the technicians, would be watching, and and looking, for this to. Come come. Through this line you know and hit a new, high now yesterday, it, actually, did you. Know the whip did hit a new high here, but, you, know looking. At the Russell right now there are many that would look at that and say it's in still, in a channel and hasn't. Quite gotten back to where it was you. Know. We're still you know 150. Points, away on the Russell bring. From being back to where it was at, the end of the summer okay. And then that. Dow. Our. Dow 30, so. You know not, quite, there. But we're, certainly, you know within. A stone's throw. But. Again, a very bullish trend. Since. The end of December, and when, we look at. You. Know where, we're sitting today is it, pulling back a little young. But. You. Know we're still riding, above that 10 day moving average, and certainly well above the 30. Okay. I know, that there's been a lot of. Google. In the chat. So. Yeah. We. Had a little bit of a fall. From, grace here and sometimes what we'll see is something will fall and, then it will keep. On falling, and then sometimes, it will fall and and kind. Of hit, its bottom, on that day, it's come coming, within, you. Know striking, distance here. Of both. An old resistance. And an old support, level around. This you know 11. 60. 68. Level. So. I might say we've got another support, level right here. So. We'll just have to see how that plays. Out as well, but. Yeah that one's certainly, not, up on. On. The open. Okay. So. That's where we're sitting, now. Let's. Have a look at some of our. Other. Players, so. Facebook. If we come and look at Facebook, it came, with earnings last week it was obviously, a pretty, positive. Response. And. And with, this class it's. Shorter. Term trades, and it, tends to you. Know we're in this sometimes, just for a few days or two weeks if. We had placed. A conditional. Order when we saw this. Hammer, setting, up you. Know because many would look at this. Unfortunately. It's up so much today already. You. Know they'd look at this as a flag, pattern. You know up twenty one dollars and, then. You know it had, a whopping one day pullback, had we put a conditional, order and you know if the target. Was the previous high we'd be almost there. But. If you say okay this is you know a $21. Target. Were, already. Eight dollars, into it. So. You. Know some might say I'd prefer, to look for the next setup if, we duplicate. This. Bring. It up here. You. Know we'd be looking at a target. Let me give, us some more space. At the top. So. You know our target, here would be around that 210 mark. So. We're, you, know in. We. Are in paper-money. So, let's. Give this a shot but. Knowing, when we put this in because this is a class where we're learning right, but. You. Know say. We're, a little late on the entry, you. Know some, some. Investors, or some traders, might look at this and say dang. I was a little, late on the entry, because they're you. Know had, they seen this, earlier and. Of course we only get to meet once a week right but, had they seen this, earlier and, put in a conditional, order they, might have been in at you know. 193. 10. Instead. About, 196. So. If, we look at this and say you know okay so we're it's. Already, moved three dollars but if we're expecting, a $20 move that still leaves, us seventeen, dollars to go and, recognize. Also that. Sometimes. We end up with consolidation. Around a ten dollar mark. So, we, can see you know if we look back here. You, know right around that 180, market, hung out here. For. A while and. You. Know it's not uncommon, for stuff, to hang out at this kind of mark so, even, though our target. Might, be you. Know a little higher, than 210.
Sometimes. A a, trader, might, look at this and say you know what if I got, out at 209. 50. I'd. Probably. Still, have a trade that I would consider successful. So. Just. Food for thought I mean this is your, paper, money and count and so you. Can. Adjust. That target, however you like but if we look at this you know this would say you know if it was a $21. Move. You, know this would say if we were starting here. At. 189. You. Know that would be right around the 200, mark, okay. Or the Soria rate around the the. 210, mark. Okay. So let's come over to the trade tab and. I. Listen. To John's class, last week and I know that, he, talks. About this, pretty, frequently. Is that as a rule. Of. Many. Traders. Who are swing, trading they'll look at how long they expect, the move to take and of course you know this, is a line over earnings so some people might consider this to be pretty aggressive, in that it. Did gap on earnings. You. Know after a period of consolidation but. We've had two pretty robust. Updates, here in the market in general. Has. Been moving. Very bullish ly so when we consider the. Trend, and then, we consider. You. Know Facebook, as, a company. Although. They're in the press of termina tremendous. Amount so some might say well I'd like to make this a little more conservative. To take into a into. Account that this. Happened. Over earnings. But. If we take a look at how many days this was one two three four. Days I don't think we would expect. That this would hit our target, in four days so. But if we come out and we say well what, if we expect, this move to take say two weeks. We'd. Still want to add. Some. Investors, would want to add at least 21, to 28 days so three to four weeks to that number so, if you're saying okay, if, I add. 20. Days to that plus. 14, that's you know 35, days. Or. If I'm even more conservative, I could be up over 40, so that gives us the choice of either June 7th, which is a weekly option, and when. We commonly look at the weeklies, mean. Because. This, is Facebook. Which is already traded, for million shares and the market hasn't even been open, half an hour we've got lots. Of volume, and open interest on, this. You. Know we could trade. A weekly, and if, we were looking at an at the money strike. Say the 197, 50, or. The, 200. You, know we're looking at 565. To 580, if we go to the monthlies, we probably can't do the 250, strike yeah. It's it's $5, strikes, so. You, know if we go to the 200, to compare apples to apples you. Know we have almost, two weeks less, time here in fact, we have 14, days less so two, weeks less time. You. Know and it's, a dollar. You. Know it's it's just under, a dollar less, so. A dollar thirty less, so. We're buying more time if we go out to June 21st. On the, other hand, when. We close this trade down we're. Selling, more time because our our intention, is not to.
Hold. This to expiration, right, so. This just depends on what your, comfort, level is now some. Might, prefer. To. Buy something, closer to the money and so. You know we, look at the one 9750. You've got a, 51. Delta on this meaning you've got a 51%. Chance that this will be at, 197. 50, or above on, June. 7th, you, know when we come out to. You. Know the 200, well we've got a 46, Delta that it'll be above. At 200. Or above. You. Know by. June. 21st. And. Again. You, know we've got when. You come to the monthlies I mean we've got. 27,000. Contracts, and over 1,600. Contracts, just traded today so. Let's go ahead and and. Place. A trade and let's do, the. Monthlies, just, because we've got so many more people in the boat with us and we'll, do we could do the first strike in the, money so, this already has, some, intrinsic, value. So. We're, already two. Dollars, in the money so two dollars, of this price is, you. Know already, intrinsic. Value and you. Know you might say well I really don't want to pay more for this I'd rather do the 200 and so. You know just as an example we could go ahead and, place. Two. Trades, in our paper money just, as something. That we can learn from here, and see, how, it reacts, on both if they come up and hit our target, the. Other thing we can do is say we. Can come out to Theo price, and. Again. This isn't a guarantee and. The. First thing you always do is hit reset, and I'm sure that each and every one of you is pretty familiar with this but, if we come out to reset, and say okay, we're, expecting, this to take this move to take two weeks so, we're going to come out to May 14th. We're, expecting. A seventeen. Dollar move, because. It's already moved. Three. Dollars, so we're expecting, it to move seventeen, dollars. Okay. So. We. Want to get out around 209. So. $14. Just. To seven so let's make it 13, okay. So we're at 209, 75. In two. Weeks. What. Will these be worth. So our first, strike, in the money which, we're paying about eight dollars for would be worth 16, and. The. 540. You. Know the 195. Sorry. The 200, strike which we'd be paying you, know. 542. 554. Would, be worth 12 26. So as a percentage. You know we'd be further, ahead if it makes this move. To. Buy this, strike. First strike out of the money. Okay. So let's, go ahead and, we'll. Do the first strike out of the money so we're buying. Single. And, many. In traders. Also they. Will not. Just buy single they'll buy custom, and they'll. Buy you. Know with their Oh Co bracket, so, we're going to be buying this at, 560. Our. Target. On this, is. To get it out at the market. When. Facebook. Goes. At. Or, above. Will. Make it 109. 50. And. Then. When do we want to get out, well. If we're looking at this and this has been tracking, off the, 10-day now some might might, say I see this as support, right here and, they. May want to get out you, know a percent, below that. Some. Some. Traders, will just say you know what I just want to get out if it's lost half, its value it's. Not going. In the direction I, intended, it to go so. They would just simply take that 570. And divide. It by two and. Say. If this hits 285 I'm, going to call. It a day, exit, the trade and wait, to reenter. Ok. So. We. Want both of these to be good till cancelled, we're. Going to and then then the last piece is how. Much are we willing to risk on on, a trade. So I don't. Know what, John. Typically, does in his class I think he does it as a percentage, of his account I have, a lot of money in this account so, why don't we just say that we don't want to risk just.
As An, example, for, this. Class. For this trade we, don't want to risk more than a thousand. To twelve hundred dollars, oh thank. You, so. Somebody said I think you put in. 209. When. You meant to put in, 109. When I meant to put in 209, and that's absolutely correct, thank, you very much for catching that because. We would have been out of that trade as soon as we got in 209, fifty. Okay. So. If we want, to risk you, know not more than a thousand, to twelve hundred dollars, then. We could probably do, fight safe for contracts, here. And, and it's going to double, that number because, it's not going to recognize my stop, but. If I said okay I'm at 285. Basically. Times four is going to be just over a thousand, dollars. Okay, so I. Okay. So. Here's. Where our editing. Comes in we don't want to sell and buy we, want to buy, and sell so, let's just. Wonder. If I can switch, I'm going to just delete this whole thing. Come. Back I want. To buy custom. With stop. Okay. By, custom. With Osio bracket. Okay. So. We want to do four, contracts. This. Is the challenge, sometimes when you're moving quickly, and. This. Is why it's so important, also to. Make. Sure you, read your order in and you know a lot of people will suggest that you actually read, it out loud 2:09. Fifty. Will. Save that we want to get out. So. 535, that's 250. Say. 270. Or. There abouts. Okay. We want that to be good till cancelled. Confirm. And send so, we want to buy four. Of, the, June 21st, two hundred calls at 535, to, open we. Want, to exit, this trade so our target, is if, it, hits 209. 50. Or, above we. Want, to exit our position, or, if. These, calls get, to the point where they're worth two, dollars and seventy cents, or less, we. Want to exit this position, what's, our max profit, on this, infinite. What's. The most we can lose two, thousand, one hundred and forty, and by, putting our stop at about fifty percent of the value there's not a guarantee. That we, would get out at two dollars and seventy cents per contract, but, hopefully, we would get out in that neighborhood, and that's part of the risk we would take in that trading, and we're. Going to put. In as a note. Entering. A, little. Later. Than. Ideal. So if you're. Going. Back and looking. At, your. Trades, afterwards. If you're practicing. You. Might want to put a note in and say you know this isn't an ideal setup but this is my thought process, and this is why I'm going to put this trade in my paper money. But. The, expectation. Is. That. There. Is a. Potential. $15. Move, to the upside. Okay. And. Fire. In the hole. Scott. Thanks, for catching that. Okay. So there's. Facebook, and I'm just going to make a note so that when were. Let's. Look. At another, one. P n W. And. It, was close. Okay. So when. We look at this. It's. Been kind of trading in a bit of a sideways, range hasn't, it. Okay, that's, a little bit low. It's. Activated. I just. Move it up a little smidge so. If we're saying okay, this has been kind, of trading in that 232, to 50, range about. A $20, range if we come over here and we look at this low. It, was 230 36. And then if we come and look at this hi 250, 26. 250. O9. 250. 26, so it's come up and it's kind of bonking, its head and, so. If we, were. Looking. At this on a longer. Term just to get you, know a confirmation. On our trend here. So. You know it had a period of going sideways for, the last year.
You. Know nice. Uptrend from, 107. You, know it more than doubled in price had. A pullback to 160. And then it's, back you know on February. 25th, they hit a new high. Sorry. I didn't want one, day. One. Year so. You know we're sitting in this range so if, it breaks above, this range a technician, might expect, a $20, move to the upside but, it's not quite there yet and so. You, know we. Can do one. Of two things. So. One thing that we can do is. Put. In a conditional, order and say okay the high here was 250. 26, now this is a 250. Dollar stock so, some people might say if it hits 250, 46, get me in some. Might say. This. Is a 250. Dollar stock, if it, hits a dollar, above that or 50 cents above that and some have a clip and say hey, if it's under $2 $200. A share I use, 20, cents if it's, over 200 a share I use 50 cents you can do whatever you want but. It's sitting here, and. You. Know just, on the verge of breaking out the, other. Now you could do with this as say well. If. It, rolls over and comes back down you. Know it could move, ten. Or twenty. Dollars you, know back, down, here, and so, you. Could buy. A put. You. Know with the expectation. That if it comes back down it'll. Come down by you, know ten, or twenty dollars and then say okay if this were to come down in five. Trading, days. Ten. Dollars, would that be worth my while, so. If you came out and again we want to you know look look, at acquiring more time than we need so, let's. Make sure we've got volume, here. So. We've got you know when we look at the monthlies, we've got lots, of volume and. You. Know it's, interesting more. Volume, on the calls than, on the puts but we've still got hundreds, of contracts, here and this is something that I'm sure John, has talked about that some. Traders, insist, on there being a certain, amount of open interest it, may be ten times the number of contracts, you want to trade so if you want to do ten, contracts, you want to make sure there's a hundred contracts, on the books the, some might want it to be twenty, and some, might not care but. As you're setting up your guidelines. For swing. Trading strategies. You. Know at least some investors, will have a some. Kind of guideline, or a minimum number around that and you, know for most of these strikes, of depending. On the number of contracts, you want to trade that, would be there so if we looked at you, know buying, the 240. And. Then. Coming, to Theo Price and saying like what if it only went down ten, dollars and again, first, thing you hit is reset. You. Come to minus, ten. So. What would this be worth, well, your seven. Dollar and ninety cent investment, if you paid the ask you. Know would be worth about eleven, sixty four I'm, sorry I didn't change. My timeframe. So let's say it took a week this, was. So. Let's say we go to May 9th, it's. Down $10. 1063. And. Of course is that a guarantee no is that a guarantee that it's going to pull back in price no in fact today it's up and we, don't know which way it's going to go. So. You, know you you. Know this is one that you may just want to watch or. You, could say you, know based, on. Yesterday's. Candle, if it goes below yesterday's. Candle. Then, you want to sell or buy, a put and if it goes you, know a certain amount above yesterday. Of yesterday's. High or, this, high here at 250 26, then. You want to buy a call. So. I just wanted to point this one out because, often. Times we're waiting for this breakout, but. Sometimes, there are opportunities. If something's, in a range you, can, you know you. Can buy a call, on the way up and then, exit.
It When it gets to the top so, had. We been looking, at this you. Know in hindsight it, came down here, we, had a bullish. Engulfing pattern. At, support. So. We could have said okay, this looks like it's bouncing, off a support. Level that, we've seen, it hit. You. Know. Before. We'll. Buy a call, and when it gets up to 250. We're, out and, did. It actually hit 250. It. Hit. 249. 79. Isn't. That ironic right, when I said often you know it'll come really, close and it just doesn't, quite get there well today actually it did hit 250. But. Sometimes. Putting that exit just below that $10. Click-click. To 49, 50, we, would have been out of this trade and then looking to see is it going to break above or are, we going to pull back. So. There's, a question in the chat do, we ever use long haul verticals, in swing, trading why, or why, not. There's. An entire class dedicated to. Verticals. Both you, know long call and long put verticals, and then you, know short put verticals, and short, call verticals, on Wednesdays, we tend, not to use, long. Call verticals, and swing trading, because. We're looking for a directional. Trade, that. We're only going to be in for a very short period of time and, typically we're looking at those and managing those daily. Although. Long call verticals, are a more, affordable, way of. Trading. Directionally. And in saying that some look at it as a more affordable way for. You, know those who may not be familiar with the, strategy. You. Know where what we tend, to do in this class is we're. Going to say. Buy a call, if, it breaks above, this 250, and we're. Just going to buy the call. And. You, know on a 250. Dollar stock buying a call. You, know can be expensive, and so in order to make. It more affordable, than, what we'll do is up here we'll sell a call and use. Some of the proceeds, to. Fund, the buying of the call and, so. While we can do that and while the set up is going to be the. Same. Now. What we've done is we've capped our gain, so. You know if we, were expecting. You know if this, range, is twenty dollars and we're expecting a twenty dollar move, and. We've. Got say a five dollar difference, between our strikes, then, the most that we can benefit, is if. It does move twenty dollars we're you know our our max gain. Is based on the five dollar move now you, could say well why not just sell a strike. Higher up so we could sell you. Know a strike, you, know with a $10. $10. Above where we bought the call but, our credit. Is going to diminish the. Further out we go, the, bigger the move we can benefit, from but. You, know our cat our ceiling, is getting higher but the amount of credit will receive, is, diminishing.
As We go out further, so. We really don't talk about long, call verticals, although, the set ups would, be similar, and. Yeah. So, there's. Our my answer on that one. Okay, so. Pan, W. I'd. Say let's, do. A hold, on this one but. You know or what we could do is we could come out and do a trade and say if, this goes above. 250. And. Just. As, an example, the. High was 250. 34, so let's add 50, Cent's so. If it goes above 250, 84. Let's. Buy a call and then if it comes be, low. And, where, are we right now. 248. 62, if. It goes below 248. 62, and let's take another 50, Cent's off that, so. 2 48. 12. Then. Let's buy a put, and. Then. Once you're into that you'd have to get in immediately. And then. Set up your targets, because, either way this is going to be a short-term, trade so we could come. To. Our trade tab here. And if. We're doing at the, money calls to just make, it simple, that, would be, actually. Here, the 250. And this is where you know we see the pricing, right, because. It's sitting right at 250, now so this is really just inside. The money so it's 12 it's. $1,200. One trade. So. We're. Going to come in and. Buy. A. Single. And, then we're going to come down to single order, and this. Is going to make it an O CO and. We're. Going to come up here and right click and. Create. It's. Not an opposite, order a duplicate, order. Only. We're going to make this, a. Put. And. This. Isn't going to be the 250. Well. Yeah we'll make it the same strike, we'll. Make it the 250. Put. At. 11:19. And. We'll make this good till cancelled. We'll make this. Good. Til cancelled. And. Then. We'll want to. Whichever. Way, we get in. We'll, want to put a stop on this so you could. Either do this as a single, trade and say you know I'm risking all, of it, or, you could do two contracts. Knowing. That you're going to go in and put a stop at 50% of the value whichever one, gets filled. So. For making that - if. We come to confirm, and send. So. It says bye to pand W - 50 calls at, 1285. O co, to open, or. By. The. Put at 1192, open and our. Max loss, if, it, goes against, us is, they're, taking the higher. Contract. And assuming. That that expires, worthless. Does. This make sense. So. We're saying hey if it breaks through and goes up we're. In, and and our target, on that would be $20, higher and if. It moves, to. The downside, and stays in the range, then. We'll look, at trading it back close, to the, support, and that's something that that. Some, traders would watch daily. And as soon as they see. That. It, looks like it has stopped. Approaching. That support, level. Then. They would exit that trade, okay. So this is pan W, and. You. Know our note in here would be as, soon. As one. Order, is. Filled. Go. In. And. Add, an, O, Co bracket. For. The target and that isn't to say that you're still not going to watch this. Wouldn't. You do the condition. Now before, you place the order yes. Okay. So this. Is actually, we're getting and this is we may be getting in. We. May be getting in and paying more than 1285. So. Here's our symbol, we want this to be above. 250. 76. Two-fifty, 76. And. On, this one we want, it to be. On. The. Put if it, goes below. 248, 12. To. 48, 12. Okay. So we want to buy two of. Pan W, at the 250, call if it goes above 250. 76. Or, we. Want to buy the 250. Put if it, goes at. Or, above. At. Or, below. P. Meet these are early morning, classes. Okay. Let's try it again save. Oh. Sorry. Guys bring, that over here. Okay. So we, want to buy, two a pan, W the put if it goes at or, below and, then. Pans, mark at or above. We're. Going to put this in our bucket. Which I haven't set up yet. On. This. Account, for swing trading in. A. Way we go. This. Is a no Co order, so if we come back now to the monitor, tab to look at this. You. Can see that this is pending there's a wait condition. And. When. We looked at this order. See. If I can bring this up. It's. An OC, Oh. So. Here. Let me just go back again, and we can just. So. We looked at this and said okay, we want to buy. And. We. Just hit the buy a single. And, then. We came down to single order, said. We, want this to be an O CO order. So. You click Osio. Right. Click. Create. A duplicate. Order and we're changing, the second, one from a call to a put.
Then. We're changing, both of these to market orders, and, we're. Putting in a condition. To. Say. On the call we, want it to have moved up above, the high of this range so we want it to be higher than. That. 250. 76. Whoops. The. 250, 76, and, then. On the put side. The. Condition, was that we wanted it to be, below. Less. Than 240. 812. So. When we get to confirm and send it was by. One. Of the June 21st call, if it goes out or above 250 76. Osio, to open, and, then. Buy one pan W, of the 250, put if it goes below 248. O co2 open. So. That's how you create an O CO order, when you have something sitting, at a resistance, level and you aren't sure of which way it's. Going to go and some. People wouldn't bother doing the condition, and wane thank you for mentioning that they, wouldn't bother, going. Through this but let's say you want to go out and golf for the day. You. Know I know that we have people enjoying, sunshine. And 90 degree weather that are on this call and so they'd, rather put, in a conditional, order and know that they're getting in at the beginning, and. So that would that's, their motivation to do this okay. So we, don't have a ton of time, left. In this class I just want to encourage. You, though to go, through, your watchlist and and. Look at some others set up so, yesterday. You know one of the ones that I noticed, was Hass and although it's been kind of going, sideways it's been moving, in an uptrending. Direction. Since, the end of the year, and when we look at this you know bouncing. Off a. Support, line and one might be waiting for it to break above this 10. Day moving average, so today it, looks like it's pulling back but that might be one to keep an eye on and, practice. In your paper money. Nike. Now, nike. Appears, to be consolidating. And so one of the things i wanted to mention. And i know john talked about this last week also but, I call, it mid-management. Trading. Considerations. And I'm just typing this into, the chat and. You. Know, if, you guys can type into the chat what. Is our nemesis. When, we are buying. Or, when, we're, long whether. It's puts or calls of, of you. Know Delta, Vega. Theta, gamma which, one, is going to eat our lunch, slowly, but surely eat, the value of our trade away. And. I know there's a bit of a leg but you know what. Do we really have to take into account Michelle. You've got a time, so. If our trade doesn't move half. The, distance, in. Half. The, time Francisco. You got, it in half. The time. Some. Traders, will consider. Exiting. So. These. Are and I guess I should just say example. Considerations. The. You know this is not gospel. But if our if, the, trade not, our trade, the, trade doesn't, move half the distance in half the time, consider. Exiting. Theta. Cliff. CW. You've got it the, other thing is. You. Know so some. Traders. Might say if you. You. Know if. The. Trade. Moves. Against. The. Direction. Intended. Two. Days in a row or some, might say three, days in a row. Consider, exiting. And, you, know so, in other words if the, trade we place today was bullish. Two. Or three down, days, in, a row. You. Can exit, take. Your profits. Minimize. Your losses and look for the next setup because if something, has moved, you. Know three or four days, down, it's, not, heading, in the direction that. You. Know you're looking for the, other thing, to, consider in your middle management, is. If. It, gets. Close. To. Your. Target. And. Then. A. Pattern. Of. Change. Appears. You. Know the winds of change. You, know some. Investors, might want to consider, taking. Their profits. So. Like if we were back in looking, at pan W, again and you. Know we're looking at this and saying okay. You know we got to. 249. 79. And if our target was 250. Or maybe we put our target, in as 249. 80, and, it's like a penny away so. This, is we're watching. These daily, can help and, then you know now we, had a really big bullish, candle, here but, today we've, got you, know maybe some dark cloud cover setting up or, you, know we have a candle, that's indicating, it might change so had, we come in and bought. A call here. You, know even if it didn't quite hit the target, you, know there are many who would say I'm going to take my profits, and then look, for my next, trade opportunity. Might be with this stock might be with a different stock. Does. This make sense. You, guys are probably already, all over all of this right because you're.
Here. On a regular basis. That's. From another class but. Just. Some things to consider because, what. Can happen sometimes, is something, will languish and it hasn't quite hit your target it hasn't quite hit your stop and you're stuck somewhere in the middle so. What I encourage, you to do is just, get out and and look, for, some setups and we looked at bullish. Setups today the market, tends to be moving more bullish ly but, you know there are some. You. Know bearish, setups, potentially. Out there also. Because. We started this class at the market open. And. You. Know where we might one find and. You know looking at this as a Bear, Flag opportunity. Perhaps. So. What I encourage, you to do is you. Know go. Through and. Look. For setups. And then place, a couple of trades in your paper money place. An AK set place. A target. And, then watch, your mid-management. Along, the way. So there's, your mission, should you decide, to accept it. And. Yeah and I wanted to write these down because I know that sometimes you. Know when you're in and you're, sometimes. I. Know when I was a student I would try and mimic. The types of, trades. That, the instructors, were putting in in my paper money as we, were going through the class that sometimes the things that we say you. Know can kind of get lost. Okay. So you. Can see here that this pan W, trade got filled, and, so. If. We. Come to the monitor, tab and we'll do. This quickly and then we. Need to wrap so. What, happened, was one order, got filled, and the other order, got cancelled, so the. Order, to, buy the call, got cancelled. And. Then. The order, to. Buy. The put, got, filled and, so. Now we want to go in and we don't have time to do that during, this class but I will do that afterwards, is we'll put in a target, and we'll put in a stop and the, stop might be to say you know if it goes one, or two percent above. The. Resistance, you. Know and you can make that number whatever you want then, exit, the trade it's not going in the direction we, want and if it gets down to and, set a target. Then, you, know we'll, exit, the, trade to the downside so. That's, it my friends, please. Remember, that. Options. Are not suitable, for all investors please. Know that you. Know we do demonstrate, using actual, symbols, in this class but that is, in paper money and it is for. Educational. Purposes only not, a recommendation, to buy or sell any, particular stock, or use any particular, strategy. So, Don I'm glad the reminders, were helpful for you I really appreciate, you being here up next, is an intro, to trading futures at, the, top of the hour I hope you can join us for that so, thank you so much everyone it's been a pleasure being here with you take, care best of success in your trading and enjoy the sunshine bye, for now oh. You. Know what I forgot to post the survey, here's. The survey, it's coming at you late if you do a quick click five. Questions, 20 seconds, if you're with us live that would be appreciated. Thank, you so much again guys bye for now. You.
2019-05-03 19:17
