From today Testing phase of trading range through option selling starting for me!
I will be doing paper trades for a month and real trades with 10% of capital for 1 month and include this strategy into my trading arsenal provided it yield better results.
Today is good day to start with, as NF struck in 50 point range whole day.
Below screenshots should be self explanatory.
I will put a detailed post later once i gather confidence in this area.
So, to summarize.. so far my way of trading range with selling CALL and PUT is...
1. Identify location/reason to anticipate range move
2. Sell CALL and PUT (which combination to use, is some thing i need dig deep)
3. Exit one of sold option once BOF happened at RH/RL
4. Ride other one till other extreme tested/broken
Also one can wear OPTION BUYER cap,, once price broke out of range on either side and about to make trend move (this is where your price read, ongoing trend etc.. DP concepts should guide)
I am no expert in this option selling area, today is my first day of testing phase.
Hopefully this exercise will yield good strategy, as options are designed to favor sellers,, specially in range bound days/phase.
I will be doing paper trades for a month and real trades with 10% of capital for 1 month and include this strategy into my trading arsenal provided it yield better results.
Today is good day to start with, as NF struck in 50 point range whole day.
Below screenshots should be self explanatory.
I will put a detailed post later once i gather confidence in this area.
So, to summarize.. so far my way of trading range with selling CALL and PUT is...
1. Identify location/reason to anticipate range move
2. Sell CALL and PUT (which combination to use, is some thing i need dig deep)
3. Exit one of sold option once BOF happened at RH/RL
4. Ride other one till other extreme tested/broken
Also one can wear OPTION BUYER cap,, once price broke out of range on either side and about to make trend move (this is where your price read, ongoing trend etc.. DP concepts should guide)
I am no expert in this option selling area, today is my first day of testing phase.
Hopefully this exercise will yield good strategy, as options are designed to favor sellers,, specially in range bound days/phase.
