IWM divergence 12-29-21 - one for the nimble trader

Uncategorized Jan 02, 2022

This setup on IWM happened in the first 45 minutes of trading on December 29, 2021. Notice the bottoming in prices at 10:15 eastern and the definitive MACD divergence up at that time in the Chart below. As it's on the 3 minute chart, this one played out in just one hour.

Here's what the IWM 12/29/21 224 calls did in under an hour (note time stamp on the tweet and the options chart are Pacific time. The Chart of IWM itself is eastern. The 224 calls expiring that day 12/29/21 could have been had for 8 or 9cc and reached a high of 40c.

The Options Hunter approach focuses on divergences between the MACD and the price action. We don’t employ other indicators such as RSI, Stochastics or Bollinger bands as we keep our approach simple, straightforward, and repeatable

 

What are Weekly Options and Why Do I use them.

Weekly options are a great way to make money, but it can also be incredibly volatile. Trading weekly should only really be considered for experienced...

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WalMart WMT hourly divergence December 8, 2021

Uncategorized Dec 15, 2021

We were watching several stocks towards the end of day on December 7, 2021. WMT was setting up a nice hourly divergence between the MACD and the price action. As prices bottomed in the morning of December 8, 2021, the turn up in the lower timeframes occurred around 13:00.

 

Given the strength of the divergence, and the slope of the MACD, we looked at WMT out-of-the-money 145 calls to expire on December 10, 2021. Acquiring them at 8c, the options went nowhere fast,  and the downturn into the following morning, if you rode it out, came to fruition by the end of the expiration day with the price soaring to over $1.

There was also a reentry point on the same option around 10.30 eastern on December 9, 2021 with price at around 4c for the call. 

 Here's what the option looked like. all the action took place at the end of the day on the 10th.

The Options Hunter approach focuses on divergences between the MACD and the price action. We don’t employ...

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SPY 450 puts that went from .01 to 2.20 in a matter of hours

Uncategorized Dec 03, 2021

How about that Monday turn around, did you see that coming? We went from the low on November 30 up by 2% on the SPY by 11.15am eastern. Were we wary? yes. Our daily SPY and weekly charts on SPY are still on an MACD divergence down. Sure enough when the 5 min timeframe diverged down right at 11.15am. We were ready to strike. 

Check out the SPY 450 puts that went from .01 to 2.20 in a matter of hours.

https://www.theoptionshunter.com/2021-sale-page-v2

The Options Hunter approach focuses on divergences between the MACD and the price action. We don’t employ other indicators such as RSI, Stochastics or Bollinger bands as we keep our approach simple, straightforward, and repeatable

 

What are Weekly Options and Why Do I use them.

Weekly options are a great way to make money, but it can also be incredibly volatile. Trading weekly should only really be considered for experienced traders who know what they're doing because there is no guarantee that any profits...

Continue Reading...

Did you see the Black Friday crash coming? We did & you can too

Uncategorized Nov 26, 2021

I hate to say I told you so, but we've been on a strong downside divergence on SPY for days. This daily chart says it all. I've tweeted to my Big Game subscribers about the SPY puts that gained 10,000% on Monday November 22, 2021.

P.S. If you want these types of insight into the market BEFORE they happen there's a deal here for you!

https://www.theoptionshunter.com/2021-sale-page-v2

The Options Hunter approach focuses on divergences between the MACD and the price action. We don’t employ other indicators such as RSI, Stochastics or Bollinger bands as we keep our approach simple, straightforward, and repeatable

 

What are Weekly Options and Why Do I use them.

Weekly options are a great way to make money, but it can also be incredibly volatile. Trading weekly should only really be considered for experienced traders who know what they're doing because there is no guarantee that any profits will even exist in the first place!

How do Weekly Options Differ from...

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Zoom classic MACD daily divergence in early August

Uncategorized Sep 23, 2021

Daily Bullish MACD Divergence -Trade Analysis ZM August 5, 2021

The Options Hunter Approach is based on four distinct aspects 

Step 1: Divergences in technical indicators warn that the current trend is losing momentum in the short term. The stock or index is making new highs or lows, and the MACD indicator does not confirm new highs or lows, which is known as a divergence.

Macd Divergences can be Bearish or Bullish and signals to option traders a potential opportunity for extraordinary gains. Divergences can occur in any timeframes and with many indicators, but we’ll address multiple timeframes in-depth shortly.

The Options Hunter approach focuses on divergences between the MACD and the price action. We don’t employ other indicators such as RSI, Stochastics or Bollinger bands as we keep our approach simple, straightforward, and repeatable

Daily Chart ZM August 5, 2021

  

In this example, we’ve identified...

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IWM strikes again August 20 and 27, 2021

Uncategorized Sep 14, 2021

Daily Bullish MACD Divergence -Trade Analysis IWM August 20, 2021

The Options Hunter Approach is based on four distinct aspects 

Step 1: Divergences in technical indicators warn that the current trend is losing momentum in the short term. The stock or index is making new highs or lows, and the MACD indicator does not confirm new highs or lows, which is known as a divergence.

Macd Divergences can be Bearish or Bullish and signals to option traders a potential opportunity for extraordinary gains. Divergences can occur in any timeframes and with many indicators, but we’ll address multiple timeframes in-depth shortly.

The Options Hunter approach focuses on divergences between the MACD and the price action. We don’t employ other indicators such as RSI, Stochastics or Bollinger bands as we keep our approach simple, straightforward, and repeatable

Daily Chart IWM August 20, 2021

  

In this example, we’ve...

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The Volatility Index (VIX)

Uncategorized Aug 03, 2021

Volatility Index is an innovation that provides options traders with the opportunity to achieve spectacular returns rarely present in other options markets. 

The index is based on the implied volatility present in 30-day S&P 500 options. In truly efficient markets, this can reliably be seen as the market’s expectation of near-term volatility. Thus, once the index is created, traders can implement a view of volatility isolated from other variables common to option pricing, such as underlying asset prices, dividends, and even days to expiry. 

The VIX’s volatility becomes a tradeable commodity and allows a straight purchase or sale of volatility, 

The VIX has a well-defined historical correlation with the S&P. History shows that equity markets rise at a far slower rate than they fall. As such, the historical volatility of the S&P is inverse to its price. 

This makes the perfect timing tool for equity markets. When the VIX is low, the markets...

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Bullish MACD Divergence -Trade Analysis IWM

Uncategorized Jul 01, 2021

Bullish MACD Divergence -Trade Analysis IWM

The Options Hunter Approach is based on four distinct aspects 

Step 1: Divergences in technical indicators warn that the current trend is losing momentum in the short term. The stock or index is making new highs or lows, and the MACD indicator does not confirm new highs or lows, which is known as a divergence.

Macd Divergences can be Bearish or Bullish and signals to option traders a potential opportunity for extraordinary gains. Divergences can occur in any timeframes and with many indicators, but we’ll address multiple timeframes in-depth shortly.

The Options Hunter approach focuses on divergences between the MACD and the price action. We don’t employ other indicators such as RSI, Stochastics or Bollinger bands as we keep our approach simple, straightforward, and repeatable

15-minute Chart

  

In this example, we’ve identified a Bullish Divergence on...

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Bullish MACD Divergence -Trade Analysis NIO

Uncategorized Jun 14, 2021

Bullish MACD Divergence -Trade Analysis NIO

The Options Hunter Approach is based on four distinct aspects 

Step 1: Divergences in technical indicators warn that the current trend is losing momentum in the short term. The stock or index is making new highs or lows, and the MACD indicator does not confirm new highs or lows, which is known as a divergence.

Macd Divergences can be Bearish or Bullish and signals to option traders a potential opportunity for extraordinary gains. Divergences can occur in any timeframes and with many indicators, but we’ll address multiple timeframes in-depth shortly.

The Options Hunter approach focuses on divergences between the MACD and the price action. We don’t employ other indicators such as RSI, Stochastics or Bollinger bands as we keep our approach simple, straightforward, and repeatable

Daily Chart

  

In this example, we’ve identified a Bullish Divergence on the MACD indicator in a striking contradiction to the...

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Interview with Options Expert Dale Wheatley in Traders World

Uncategorized Oct 06, 2020

  

Traders World:  What is your background before you started trading options?

Dale: I was a Telephone Contractor for many years and needed and wanted an investment vehicle that could travel with me, one that was not too complex.

I studied all about different investments such as real estate, buying discount mortgages, tax certificates, etc. as well as the stock market, but none of those things seemed simple enough for me to control myself without a great investment of time and money.

I simply did not have much time to devote to those things since I worked 100-hour weeks and moved around the country doing storm reconstruction for telephone companies, etc.

I accidentally happened across options in the mid-1980s and I immediately saw the advantage of the limited risk-vs-potential returns.

TRADERS WORLD: How did you get started in trading options?

Dale: I began trading options in the mid-1980’s. I read every book I could find about options...

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