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Current volatility of an asset > stop size X order size = max risk.

High-beta stocks under perform in a bear market.

Use option calculator to find option's future price range based on your prediction of underlying price action. Set limit orders for spreads at midpoint.

How many biotech startups make it? Is it like 1/10 or closer to 1/1000?

And yet many people say that selling naked puts is the most risky strategy, while a stock can go down to zero but when it goes up there is no limit! I wonder what percentage of option traders have read OCC's ODD prior to trading. Would you still sell naked calls after reading this ? Source...

Hi Bugsy, If you are looking for volatile stocks you might consider screening for tickers with highest beta coefficient and restrict market cap to avoid penny stocks.

That was a piece of good advice, thanks. Now it looks like this time it is more likely this may be a succesful BO because: 1)new high today, 2)intraday low at exactly our previous resistance line was a good support, 3)more then 5 bars and it did not return to previous channel, 4) price is above...

SPX Index Puts and/or VIX Calls.

Imo psychical delivery contracts should not be allowed for retail.

volpri, I think no technical analysis can explain what happened today. It dropped 12% at open and then made new highs at the close. Long @11 but got stopped out quickly. Should have been scaling in instead. I guess the lesson for today is not to trade around earnings announcements. One should...

You cannot use your long leg automatically to protect you because both legs of your spread are independent contracts. By writing a call you have given the buyer unconditional right to buy the underlying. It is your decision, not the broker's, to either sell to close the long leg and buy back...

Hi, it does make perfect sense what you write, because you understand price behavior is unpredictable and can go either way. One must be prepared for whatever it is doing. I also think before making an order entry, what happens when I am wrong and where my stop is. I just want to be where the...

I also add SMA 100 which explains why price met strong demand here so no second bear leg occurred, and it was also previous high on the 16th.

Hi, today we did not get the second leg down but it opened with a gap up and made a new high just before the close. Following your methodology one would be selling now because we are in the top 1/3 of the channel and in addition a doji bar may signal a reversal. However there is a risk of...

I hope nobody entered this short straddle trade to loose 3k by now. If only there was a way to see who was buying those calls before the announcement.

This might help: https://interactivebrokers.github.io/tws-api/excel_apis.html#available_excel_apis

Hi volpri, thank you for your analysis. I upload new chart which is 30 min bars of UIS@NYSE with added volume and 20 EMA. Is just a random ticker where I found a nice trend to follow. It appears to have been as false breakout below channel, so you were right in your assessment that most BO...

If you don't automate order entry, why not just feed your code with price and volume data from vendor and have it calculate the signals on your own machine rather then by broker? E.g. refresh spreadsheet with OHLC data every X minutes and run VBA or any kind of code on it.

Thank you for this valuable analysis. Is 'Brooks' some kind of an expert or a school and where can I find more details to study? I will get back later on how this chart will have unfolded.

Hi volpri, I admire your in depth chart analysis. Are you willing to accept a challenge? Below is a random chart with Friday closing price below 11. Do you think it will bounce back up on monday or fall down and continue reversal?