Post by Admin on Feb 27, 2015 20:40:32 GMT
IV rank: above 75%
IV: 0.50 to 0.55 range
Price: 18.65
1 STD: 1.34
Upper range: 20.00
Lower range 17.50
Strikes used: 17.00 and 16.50
Strategy: Bull put spread.
Credit: 0.036 after commissions.
Max risk: 0.47.
ROC: 7.6%
Chart: used 1 hour chart
Steps:
1) Layed out implied volatility lines for the week using 1 Hour chart
2) assessed where there lines lined up using the daily chart. considered possible price support /resistance areas.
3) Looked for entry that was 1.5 STD away from mean that is also near support. sold 17.00 put, bought 16.50 put. Attempt to gain at least 5% ROC.
4) Was going to look for upper entry, but did not have time to focus on that. This would have doubled my credit.
5) Looked at whether any upcoming economic news would affect the Oil prices. No oil news.
6) waited for a 0.5 STD move. a 0.25 to 0.5 std move is generally successful
Looking at ways to gain larger returns.
IV: 0.50 to 0.55 range
Price: 18.65
1 STD: 1.34
Upper range: 20.00
Lower range 17.50
Strikes used: 17.00 and 16.50
Strategy: Bull put spread.
Credit: 0.036 after commissions.
Max risk: 0.47.
ROC: 7.6%
Chart: used 1 hour chart
Steps:
1) Layed out implied volatility lines for the week using 1 Hour chart
2) assessed where there lines lined up using the daily chart. considered possible price support /resistance areas.
3) Looked for entry that was 1.5 STD away from mean that is also near support. sold 17.00 put, bought 16.50 put. Attempt to gain at least 5% ROC.
4) Was going to look for upper entry, but did not have time to focus on that. This would have doubled my credit.
5) Looked at whether any upcoming economic news would affect the Oil prices. No oil news.
6) waited for a 0.5 STD move. a 0.25 to 0.5 std move is generally successful
Looking at ways to gain larger returns.