It is a good theoretical concept stressing on letting your winners run so one can squeeze more profits out of a position. You know how we human traders get excited by even looking at a small profit. I think its natural because profit isn't yours until the trade is closed, and loss is all yours...
There are so many ways to define a trend, but you can simply get an idea by visually inspecting the long-term chart of SPX or any security for that matter... Looking at moving averages, trend lines etc..
It seems to be a bearish set up..Has anyone had any experience in implementing these successfully? (May be with addition to some other study as well)..
Greeks should not be ignored... https://www.gooptionspro.com/2014/10/greeks-are-my-best-friend/ .. an article I wrote on my blog. Simple.... but related..
all the best to U
Here is a LNKD chart from a couple of days ago. They announce their earnings later today after close. Do you think it has held that trend line for a reason and is now going to gap up as it did back in late Oct'14, and early Feb'15...
The exp date does create high volume due to exercising, which in turn creates temporary demand/supply issue.............. that can take the stock either way on a short-term basis. Given everything else remains constant, follow the bigger trend.
How far out an expiration date should be (Less than a year though) so that time value has minimum impact and Gamma is high...?
And the second question is.. any particular things to keep in mind when trading an equity option vs. an index option?