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WAL Western Alliance Bancorporation Options Ahead of EarningsIf you haven`t bought the start of the reversal on WAL: Now analyzing the options chain and the chart patterns of WAL Western Alliance Bancorporation prior to the earnings report this week, I would consider purchasing the 65usd strike price Puts with an expiration date of 2024-9-20, for a premium of approximately $1.60. If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
NYSE:WALShort
by TopgOptions
Exploring Bullish Plays with E-minis, Micro E-minis and OptionsIntroduction The S&P 500 futures market offers a variety of ways for traders to capitalize on bullish market conditions. This article explores several strategies using E-mini and Micro E-mini futures contracts as well as options on futures. Whether you are looking to trade outright futures contracts, create sophisticated spreads, or leverage options strategies, this guide will help you design effective bullish plays while managing your risk. Choosing the Right Contract Size When considering a bullish play on the S&P 500 futures, the first decision is choosing the appropriate contract size. The E-mini and Micro E-mini futures contracts offer different levels of exposure and risk. E-mini S&P 500 Futures: Standardized contracts linked to the S&P 500 index with a point value = $50 per point. Suitable for traders seeking significant exposure to market movements. Greater potential for profits but also higher risk due to larger contract size. TradingView ticker symbol is ES1! Margin Requirements: As of the current date, the margin requirement for E-mini S&P 500 futures is approximately $12,400 per contract. Margin requirements are subject to change and may vary based on the broker and market conditions. Micro E-mini S&P 500 Futures: Contracts representing one-tenth the value of the standard E-mini S&P 500 futures. Each point move in the Micro E-mini S&P 500 futures equals $5. Ideal for traders who prefer lower exposure and risk. Allows for more precise risk management and position sizing. TradingView ticker symbol is MES1! Margin Requirements: As of the current date, the margin requirement for Micro E-mini S&P 500 futures is approximately $1,240 per contract. Margin requirements are subject to change and may vary based on the broker and market conditions. Choosing between E-mini and Micro E-mini futures depends on your risk tolerance, account size, and trading strategy. Smaller contracts like the Micro E-minis provide flexibility, especially for newer traders or those with smaller accounts. Bullish Futures Strategies Outright Futures Contracts: Buying E-mini or Micro E-mini futures outright is a straightforward way to express a bullish view on the S&P 500. This strategy involves purchasing a futures contract in anticipation of a rise in the index. Benefits: Direct exposure to market movements. Simple execution and understanding. Ability to leverage positions due to the margin requirements. Risks: Potential for significant losses if the market moves against your position. Requires substantial margin and capital. Mark-to-market losses can trigger margin calls. Example Trade: Buy one E-mini S&P 500 futures contract at 5,588.00. Target price: 5,645.00. Stop-loss price: 5,570.00. This trade aims to profit from a 57-point rise in the S&P 500, with a risk of a 18-point drop. Futures Spreads: 1. Calendar Spreads: A calendar spread, also known as a time spread, involves buying (or selling) a longer-term futures contract and selling (or buying) a shorter-term futures contract with the same underlying asset. This strategy profits from the difference in price movements between the two contracts. Benefits: Reduced risk compared to outright futures positions. Potential to profit from changes in the futures curve. Risks: Limited profit potential compared to outright positions. Changes in contango could hurt the position. Example Trade: Buy a December E-mini S&P 500 futures contract. Sell a September E-mini S&P 500 futures contract. Target spread: Increase in the difference between the two contract prices. In this example, the trader expects the December contract to gain more value relative to the September contract over time. The profit is made if the spread between the December and September contracts widens. 2. Butterfly Spreads: A butterfly spread involves a combination of long and short futures positions at different expiration dates. This strategy profits from minimal price movement around a central expiration date. It is constructed by buying (or selling) a futures contract, selling (or buying) two futures contracts at a nearer expiration date, and buying (or selling) another futures contract at an even nearer expiration date. Benefits: Reduced risk compared to outright futures positions. Profits from stable prices around the middle expiration date. Risks: Limited profit potential compared to other spread strategies or outright positions. Changes in contango could hurt the position. Example Trade: Buy one December E-mini S&P 500 futures contract. Sell two September E-mini S&P 500 futures contracts. Buy one June E-mini S&P 500 futures contract. In this example, the trader expects the S&P 500 index to remain relatively stable. Bullish Options Strategies 1. Long Calls: Buying call options on S&P 500 futures is a classic bullish strategy. It allows traders to benefit from upward price movements while limiting potential losses to the premium paid for the options. Benefits: Limited risk to the premium paid. Potential for significant profit if the underlying futures contract price rises. Leverage, allowing control of a large position with a relatively small investment. Risks: The potential loss of the entire premium if the market does not move as expected. Time decay, where the value of the option decreases as the expiration date approaches. Example Trade: Buy one call option on E-mini S&P 500 futures with a strike price of 5,500, expiring in 73 days. Target price: 5,645.00. Stop-loss: Premium paid (e.g., 213.83 points x $50 per contract). If the S&P 500 futures price rises above 5,500, the call option gains value, and the trader can sell it for a profit. If the price stays below 5,500, the trader loses only the premium paid. 2. Synthetic Long: Creating a synthetic long involves buying a call option and selling a put option at the same strike price and expiration. This strategy mimics owning the underlying futures contract. Benefits: Similar profit potential to owning the futures contract. Flexibility in managing risk and adjusting positions. Risks: Potential for unlimited losses if the market moves significantly against the position. Requires margin to sell the put option. Example Trade: Buy one call option on E-mini S&P 500 futures at 5,500, expiring in 73 days. Sell one put option on E-mini S&P 500 futures at 5,500, expiring in 73 days. Target price: 5,645.00. The profit and loss (PnL) profile of the synthetic long position would be the same as owning the outright futures contract. If the price rises, the position gains value dollar-for-dollar with the underlying futures contract. If the price falls, the position loses value in the same manner. 3. Bullish Options Spreads: Options are incredibly versatile and adaptable, allowing traders to design a wide range of bullish spread strategies. These strategies can be tailored to specific market conditions, risk tolerances, and trading goals. Here are some popular bullish options spreads: Vertical Call Spreads Bull Call Spreads Call Debit Spreads Ratio Call Spreads Diagonal Call Spreads Calendar Call Spreads Bullish Butterfly Spreads Bullish Condor Spreads Etc. The following Risk Profile Graph represents a Bull Call Spread made of buying the 5,500 call and selling the 5,700 call with 73 to expiration: For detailed explanations and examples of these and other bullish options spread strategies, please refer to the many published ideas under the "Options Blueprint Series." These resources provide in-depth analysis and step-by-step guidance. Trading Plan A well-defined trading plan is crucial for successful execution of any bullish strategy. Here’s a step-by-step guide to formulating your plan: 1.Select the Strategy: Choose between outright futures contracts, calendar or butterfly spreads, or options strategies based on your market outlook and risk tolerance. 2. Determine Entry and Exit Points: Entry price: Define the price level at which you will enter the trade (breakout, UFO support, indicators convergence/divergence, etc.) Target price: Set a realistic target based on technical analysis or market projections. Stop-loss price: Establish a stop-loss level to manage risk and limit potential losses. 3. Position Sizing: Calculate the appropriate position size based on your account size and risk tolerance. Ensure that the position aligns with your overall portfolio strategy. 4. Risk Management: Implement risk management techniques such as using stop-loss orders, hedging, and diversifying positions to protect your capital. Risk management is vital in trading to protect your capital and ensure long-term success Conclusion and Preview for Next Article In this article, we've explored various bullish strategies using E-mini and Micro E-mini S&P 500 futures as well as options on futures. From outright futures contracts to sophisticated spreads and options strategies, traders have multiple tools to capitalize on bullish market conditions while managing their risk effectively. Stay tuned for our next article, where we will delve into bearish plays using similar instruments to navigate downward market conditions. When charting futures, the data provided could be delayed. Traders working with the ticker symbols discussed in this idea may prefer to use CME Group real-time data plan on TradingView: www.tradingview.com This consideration is particularly important for shorter-term traders, whereas it may be less critical for those focused on longer-term trading strategies. General Disclaimer: The trade ideas presented herein are solely for illustrative purposes forming a part of a case study intended to demonstrate key principles in risk management within the context of the specific market scenarios discussed. These ideas are not to be interpreted as investment recommendations or financial advice. They do not endorse or promote any specific trading strategies, financial products, or services. The information provided is based on data believed to be reliable; however, its accuracy or completeness cannot be guaranteed. Trading in financial markets involves risks, including the potential loss of principal. Each individual should conduct their own research and consult with professional financial advisors before making any investment decisions. The author or publisher of this content bears no responsibility for any actions taken based on the information provided or for any resultant financial or other losses.
CME_MINI:ES1!Education
by traddictiv
Visualize $TSLA CALL pricing skew due to the upcoming earningsLet’s take a look at our new tradingview options screener indicator to see what we observe, as the options chain data has recently been updated. When we look at the screener, we can immediately see that NASDAQ:TSLA has an exceptional Implied Volatility Rank value of over 100, which is extremely high. This is clearly due to the upcoming earnings report on July 23rd. As we proceed, we notice that Tesla's Implied Volatility Index is also high, over 70. This means that not only the relative but also the absolute implied volatility of Tesla is high. Because the IVX value is above 30, Tesla’s IV Rank is displayed with a distinguishable black background. This favors credit strategies such as iron condors, broken wing butterflies, strangles, or simple short options. Next, let’s examine how this IV index value has changed over the past five days. We can see it has increased by more than 6%, indicating an upward trend as we approach the earnings report. In the next cell, we see a significant vertical price skew. Specifically, at 39 days to expiration, call options are 84% more expensive than put options at the same distance. This indicates that market participants are pricing in a significant upward movement in the options chain. The call skew is so pronounced that at 39 days to expiration, the 16 delta call value exits the expected range. This signifies a substantial delta skew twist, which I will show you visually. We see a horizontal IV index skew between the third and fourth weeks in the options chain. This means the front weekly IVX is lower than the IVX for the following week, which may favor calendar or diagonal strategies. Hovering over this with the mouse reveals it’s around the third and fourth week. In the last cell, we observe that there’s a horizontal IVX skew not just in weekly expirations but also between the second and third monthly expirations. Now, let’s see how these values appear visually on Tesla’s chart using our Options Overlay Indicator. On the right panel, the previously mentioned values are displayed in more detail when you hover over them with the mouse. The really exciting part is setting the 16 delta curve and seeing the extent of the upward shift in options pricing. This significant skew is also visible at closer delta values. When we enable the expected move and standard deviation curves, it immediately becomes clear what this severe vertical pricing skew in favor of call options means. Practically, market participants are significantly pricing in upward movement right after the earnings report. Hovering over the colored labels associated with the expirations displays all data precisely, showing the number of days until expiration and the high implied volatility index value for that expiration. Additionally, a green curve indicating overpricing due to extra interest is displayed. Weekly expiration horizontal IVX skew values appear in purple, and those affected by monthly skew are shown in turquoise blue. The 'Lite' version of our indicators is available for free to everyone, where you can also view Tesla as demonstrated. Pro indicators are available more than 150 US market symbols like SPY, S&P500, Nvidia, bonds, etfs and many others. Trade options like a pro with TanukiTrade Option Indicators for TradingView. Thank you for your attention.
NASDAQ:TSLAEducation
by TanukiTrade
CI Get FlushedSince quad witching (June 21st) NYSE:CI has been getting beaten down vs other names within its sector, this flow order came in targeting the $317.50 strike and was bought above the ask (this shows urgency). This is a very smart order because of the way they went about placing their trade. They are targeting a new low which the latest low was Feb 6th. Momentum is also in our favor which adds more fuel to the fire. I want to position into puts when the order is discounted 50-60%.
NYSE:CIShort
by OakFDom
PG Sets up for bullish reversalPG has been one of a few stocks in the S&P 500 to make double-digit percentage increase in 2024, and in doing so has stuck to a very clear trend pattern. It just recently finished with its most recent dip and is preparing to climb through August/September until it slows down once again. The trend pattern on this stock has been quite clear and stable in the past two cycles and is currently bouncing off of the lower support line thats been tested four times since December 2024. Price shocks to P&G like their upcoming earnings have historically had only a positive effect, even despite negative surprise on the their Revenue: Fri 19 Apr '24 Earnings: 7.28% up Revenue 1.17% down Up 7% by the end of the week Tue 23 Jan '24 NYSE:PG Earnings: 0.143% up Revenue 0.16% down up 8% by end of the week I Personally am entering with $165 calls expiring 8/9/24 @ $2.58 a piece. I will continue to update this as I approach exp. NOT TRADING ADVICE JUST MY PERSONAL OPINION
NYSE:PGLong
by Ayospagettio
NIFTY INTRADAY LEVELS FOR 2ND JULY 2024BUY ABOVE - 24160 SL - 24100 TARGETS - 24280,24380,24480 SELL BELOW - 24010 SL - 24100 TARGETS - 23900,23800,23740 NO TRADE ZONE - 24010 to 24160 Previous Day High - 24160 Previous Day Low - 24010 Based on price action major support & resistance's are here, the red lines acts as resistances, the green lines acts as supports. If the price breaks the support/resistance, it will move to the next support/resistance line. White lines indicates previous day high & low, high acts as a resistance & low acts as a support for next day. Trendlines are also significant to price action. If the price is above/below the trendlines, can expect an UP/DOWN with aggressive move. Please NOTE: this levels are for intraday trading only. Disclaimer - All information on this page is for educational purposes only, we are not SEBI Registered, Please consult a SEBI registered financial advisor for your financial matters before investing And taking any decision. We are not responsible for any profit/loss you made. Request your support and engagement by liking and commenting & follow to provide encouragement HAPPY TRADING 👍
NSE:NIFTY
by Jagadheesh_JP
BANK NIFTY INTRADAY LEVELS FOR 25 JUNE 2024BUY ABOVE - 51740 SL - 51510 TARGETS - 51960,52200,52500 SELL BELOW - 51510 SL - 51740 TARGETS - 5151200,50950,50730 NO TRADE ZONE - 51510 to 51740 Previous Day High - 51740 Previous Day Low - 51200 Based on price action major support & resistance's are here, the red lines acts as resistances, the green lines acts as supports. If the price breaks the support/resistance, it will move to the next support/resistance line. White lines indicates previous day high & low, high acts as a resistance & low acts as a support for next day. Trendlines are also significant to price action. If the price is above/below the trendlines, can expect an UP/DOWN with aggressive move. Please NOTE: this levels are for intraday trading only. Disclaimer - All information on this page is for educational purposes only, we are not SEBI Registered, Please consult a SEBI registered financial advisor for your financial matters before investing And taking any decision. We are not responsible for any profit/loss you made. Request your support and engagement by liking and commenting & follow to provide encouragement HAPPY TRADING 👍
NSE:BANKNIFTY
by Jagadheesh_JP
See you later ChevronNYSE:CVX note the following directional arrows are concepts and how I want to enter With firms rotating out of AMEX:XLE we can expect some of the sectors top holdings and laggers get downside potential. Looking more into this I found NYSE:CVX to be the best candidate. NYSE:CVX and other gas stocks seem to be the ones catching the momentum down. Chevron also is following the same structure as AMEX:XLE which if AMEX:XLE gets the drop Monday we can expect NYSE:CVX to follow. Expected Range - Upside $158.78 Downside $151.82 Key Levels - $153.37 - $153.59, $155.05 - $155.30, $155.61 - $156.94 Rating - Rotation out of AMEX:XLE +5, Rising volume near pivot +1, formed a base (slowed down)/topping wicks after break of base +1, same weakness as AMEX:XLE +1 8/10 Bullish, 2/10 Bearish
NYSE:CVXShort
by OakFDom
WBA Walgreens Boots Alliance Options Ahead of EarningsIf you haven`t bought WBA before the previous earnings: Now analyzing the options chain and the chart patterns of WBA Walgreens Boots Alliance prior to the earnings report this week, I would consider purchasing the 17.50usd strike price Calls with an expiration date of 2024-7-19, for a premium of approximately $0.41. If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
NASDAQ:WBALong
by TopgOptions
1
BANK NIFTY INTRADAY LEVELS FOR 19/06/2024BUY ABOVE - 50550 SL - 50400 TARGETS - 50730,50950,51100 SELL BELOW - 50250 SL - 50400 TARGETS - 50100,49890,49670 NO TRADE ZONE - 50250 to 50550 Previous Day High - 50550 Previous Day Low - 49890 Based on price action major support & resistance's are here, the red lines acts as resistances, the green lines acts as supports. If the price breaks the support/resistance, it will move to the next support/resistance line. White lines indicates previous day high & low, high acts as a resistance & low acts as a support for next day. Trendlines are also significant to price action. If the price is above/below the trendlines, can expect an UP/DOWN with aggressive move. Please NOTE: this levels are for intraday trading only. Disclaimer - All information on this page is for educational purposes only, we are not SEBI Registered, Please consult a SEBI registered financial advisor for your financial matters before investing And taking any decision. We are not responsible for any profit/loss you made. Request your support and engagement by liking and commenting & follow to provide encouragement HAPPY TRADING 👍
NSE:BANKNIFTY
by Jagadheesh_JP