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

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

 

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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!

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Weekly options and monthly options are similar—the primary difference between the two lies in the expiration dates. Monthly options expire every month on the third Friday of the month, whereas weekly options expire almost every Friday and are issued on Thursdays.

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Weekly Options are More Cost-Effective than Monthly Options

Weekly options are the best way to invest in a stock when you need maximum profit within quick time periods. They provide guaranteed market moves that last only for max two days, which means there is no risk associated with these trades because traders can always sell them before their holding period expires and make back all their money plus some extra!

Weekly Options Listings Feature Popular Stocks and Indices

Weekly options are less expensive than shares of the stock and cheaper than standard monthly ones. This is because traders have only a couple days to wait for their underlying stocks price prediction before they expire, so there isn't time sensitive premium in play here with weekly option trades - though this does mean quick opportunities can present themselves more quickly at times! The increased volatility within your holding period also

Weekly Options Maximize Profit Potential

Weekly options allow traders to profit during any kind of market environment. The short-term nature of weekly options trades calls for efficiency in a fast-paced stock market that can be highly unpredictable for long-term investments. With weekly options trades, traders can benefit from buying cheaper options and then selling them for more than purchased within a short period of time.

Regardless of the price movement, it is always possible to see triple-digit returns with weekly options buying. Unlike stocks that only benefit investors if the stock price increases, weeklies let traders benefit regardless of the stock price direction.

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