Search Interesting Videos Relevant to Forex Event Driven Trading Weekly Options, Weekly Options Trade Recap in ZM (+226% ROI).
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Trading weekly options can be an immensely lucrative strategy, as it’s possible to 10x or even 100x the money put into these strategies. But those returns come with high risks.
In this video, I break down a recent options trade I made in Zoom Communications (ticker symbol: ZM). I explain the logic behind my trade, how I adjusted the trade to become risk-free, and the total profit of the trade when accounting for all of the separate transactions.
The trade returned 226% relative to the capital used to initiate the trade, and the trade was held for less than 24 hours.
I hope you learn something about managing short-term option positions in this video.
Be sure to leave a comment down below with any questions you may have!
=== RECOMMENDED VIDEOS/RESOURCES ===
Call Options 101: https://youtu.be/fUZHmJAvN30
Implied Volatility Explained: https://youtu.be/H-NHZq-skFo
Stock Options Trading 101: https://youtu.be/3bELT5FZCic
Why Early Exercise/Assignment is Rare: https://www.youtube.com/watch?v=7pTb1a5IgKM
Options Trading For Beginners (PLAYLIST): https://www.youtube.com/playlist?list=PL33AZa4cv-o58ldr-5zSn4ROx4SZG7Jyo
tastyworks Tutorials (PLAYLIST): https://www.youtube.com/playlist?list=PL33AZa4cv-o56a2BO3jpK_PBUFe3FdvxP
Option Pricing EXPLAINED: https://youtu.be/-nnJ4pMBaxA
Options Trading 101: https://youtu.be/3bELT5FZCic
Forex Event Driven Trading Weekly Options, Weekly Options Trade Recap in ZM (+226% ROI).
The Breaks
Many people would define a spike as cost quickly bursting out of a variety. To some extent, I agree with this, but when you describe “the range” as a purely horizontal block in cost, I differ. Below are a number of very recent instances to reveal you what I’m discussing here:
Shocker I was going to make use of angled trendlines to do this, right?
But why would I make use of pattern lines in contrast to horizontal “blocks”? Well, among the earliest publications I keep reading trading in my very early days informed me to purchase such an outbreak on a straight block in cost. Lengthy story short, I got slaughtered. “False outbreaks” (another term I detest, but also for the benefit of simplicity I’ll make use of here) are very common. These “incorrect outbreaks” jab below or above a variety, as well as reverse. There is nothing “incorrect” about these outbreaks, by the way perhaps “incorrect” to the person that does not quite comprehend them they are just another part of cost, but that’s another post.
This idea is actually much more quickly done manually than it is structurally. Firstly, trading any type of true spike in cost, the chance of you going into within the initial 5 minutes should be rare, unless you’re doing this mechanically (with a program) as well as straight accessibility to a huge pooled ECN or other straight accessibility network. Many individuals reading this may be questioning the tons of spike trading software around. Hmmm, yeah, well all the best with that said. Below at NBT we often tend to favor reality as well as can’t state we are fans of the people telling others that this sort of trading is in any way acceptable on a sub-par system with reduced accessibility to liquidity. Please keep reading.
You want the preliminary whipsaws to decrease as well as a true instructions to be proclaimed. Occasionally, it will certainly take place after the initial 5 minutes. Others, it will certainly take as long as 20-60 minutes before an optimal or validated entrance is located, relying on the problems as well as stimulant.
Determining Spikes with the Golden Ratio
One of the main goals of this write-up is to aid train you NOT to discolor sharp drives in cost. When there is unpredictability airborne, a lot of investors no darn well they shouldn’t be doing anything, yet they do it anyway. If you struggle with continuously “choosing” at countertrend trades, please pay special interest:
There are two main reasons we would want to measure a spike in the first place:
- To locate a possible fatigue factor at which to take revenues if we are trading in the instructions of a spike, or
- To discolor the movement
This is the second writing I have here currently about determined moves. In the last write-up about this topic, we only reviewed utilizing 2.0 (100%) on a trendline break.
Spikes can be determined in several means, as well as fair warning: what you see below may be a little controversial to veteran strategists, but like every little thing else on this internet site, I discuss what works for me, not what I read in publications.
Another option to measuring go on spikes is to just make use of the exact same idea we reviewed several weeks ago:
pattern line breaks as well as 100% expansions. One of our visitors fasted to locate the bottom utilizing this exact same idea following Nonfarm Payrolls (convergence with the exact same graph above). Visit this site to see his graph. Confluence rules constantly.
What is a base as well as quote currency?
A base currency is the initial currency noted in a foreign exchange set, while the second currency is called the quote currency. Foreign exchange trading constantly involves offering one currency in order to purchase another, which is why it is estimated in sets the cost of a foreign exchange set is just how much one unit of the base currency is worth in the quote currency.
Each currency in both is noted as a three-letter code, which tends to be formed of two letters that stand for the region, as well as one representing the currency itself. For example, GBP/USD is a currency set that involves buying the Terrific British pound as well as offering the United States dollar.
So in the instance below, GBP is the base currency as well as USD is the quote currency. If GBP/USD is trading at 1.35361, after that one pound is worth 1.35361 dollars.
If the pound rises against the dollar, after that a single pound will certainly be worth much more dollars as well as both’s cost will certainly enhance. If it goes down, both’s cost will certainly reduce. So if you assume that the base currency in a pair is most likely to reinforce against the quote currency, you can purchase both (going long). If you assume it will certainly compromise, you can market both (going short).
To keep points gotten, a lot of suppliers divided sets right into the following classifications:
Significant sets:
Seven money that comprise 80% of international foreign exchange trading. Includes EUR/USD, USD/JPY, GBP/USD, USD/CHF, USD/CAD as well as AUD/USD
Minor sets:
Less regularly traded, these usually include significant money against each other as opposed to the United States dollar. Consists of: EUR/GBP, EUR/CHF, GBP/JPY
Exotics:
A significant currency against one from a little or arising economic situation. Includes: USD/PLN (United States dollar vs Polish zloty), GBP/MXN (Sterling vs Mexican peso), EUR/CZK
Regional Pairs:
Pairs classified by region such as Scandinavia or Australasia. Includes: EUR/NOK (Euro vs Norwegian krona), AUD/NZD (Australian dollar vs New Zealand dollar), AUD/SGD
Summary:
Matching various kinds of trading to a person’s personality type is absolutely no guarantee for foreign exchange trading success. Nonetheless, locating a trading design that’s well suited to your personality type can aid new investors locate their feet as well as make the appropriate relocate the marketplace. Simply take the test as well as respond to the 15 questions honestly to expose which trading design is the appropriate suitable for you.
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Risk Disclaimer:
All items listed on our website TradingForexGuide.com are traded on leverage which suggests they lug a high level of financial risk as well as you could shed greater than your down payments. These items are not appropriate for all financiers. Please guarantee you completely comprehend the threats as well as meticulously consider your economic situation as well as trading experience before trading. Look for independent suggestions if essential.
