Candlestick Secrets for Profiting in Options Seminar
Candlestick Secrets for Profiting in Options Seminar Nison Candlesticks to Guide Your Option Trades
“I was long a stock and saw bearish candles so I bought a put to protect my position.” “Being able to employ some defensive timing measures REALLY reduces my anxiety” “The candles provide the final piece before I initiate a defensive call/put position – the gun is loaded and primed, but candles provide the spark for detonation. NO SIGNALNO ACTION” 25
Nison Candlesticks for Portfolio Protection How can I boost or preserve profits even when my core markets are falling? Use Nison candlesticks for pinpoint timing entering and exiting covered calls and protective puts © Steve Nison’s Candlecharts.com
26
www.nisonoptionsacademy.com
Examples of when to protect portfolio:
• • •
•
www.nisonoptionsacademy.com
Bearish candlestick Bearish western indicator At resistance (especially with bear candlestick) Falling off the roof
27
As per non-disclosure agreement, you are legally bound not to share this information including handouts
Candlestick Secrets for Profiting in Options Seminar Nison Candlesticks to Guide Your Option Trades
Covered call: Selling (or writing) calls while at the same time owning an equivalent number of shares of the underlying instrument. Protective Put: Buying puts while holding shares of the underlying stock. 28
29
Remember: If you are scared about a major moveexit the position!
30
As per non-disclosure agreement, you are legally bound not to share this information including handouts
Candlestick Secrets for Profiting in Options Seminar Nison Candlesticks to Guide Your Option Trades
www.nisonoptionsacademy.com
31
What defines a trend?
• • • •
Higher highs and higher lows Chart of higher degree Price above a moving average Dual moving averages – and use golden and dead crosses
www.nisonoptionsacademy.com
32
Overview: Covered calls compared to long puts Puts when: • IV is not too high compared to what is “normal” • Don’t want to worry about being called away by using a covered call. • Worried about a big move where call premium for a covered is not enough protection • Pure insurance Covered calls when: • Income generation • Expect choppy market • IV is overextended • Time decay in your favor • High price market makes longs puts too expensive
www.nisonoptionsacademy.com
33
As per non-disclosure agreement, you are legally bound not to share this information including handouts
Candlestick Secrets for Profiting in Options Seminar Nison Candlesticks to Guide Your Option Trades
Nison Candle strategies for portfolio protection Long this market and want to buy a put How much protection do you want? Deeper ITM more expensive, but higher delta OTM may not help much, due to lower delta ATM – have 50% delta which gets larger as options becomes more ITM. Note: Can get 100% delta by doing 2 ATM puts.
www.nisonoptionsacademy.com
34
Nison Candle Strategies for portfolio protection
Use the precision timing of Nison candles to help avoid giving up profit potential by doing a covered call or protective put prematurely.
www.nisonoptionsacademy.com
35
Nison Candle strategies for portfolio protection
Have SP in retirement account. Worried about a move to 126. Mkt @ 138 Buy a 30–day 135 put @ 3.30 Cover at support at 126 put @ $10 Paper lose on mkt of $1200 on 100 shares and made $670 on protective put
www.nisonoptionsacademy.com
36
As per non-disclosure agreement, you are legally bound not to share this information including handouts
Candlestick Secrets for Profiting in Options Seminar Nison Candlesticks to Guide Your Option Trades
Nison Candle strategies for portfolio protection
I owned GS. I bought 5 Sept 160 puts to cover my 500 shares of GS when the stock was at 168. The put cost me 5.30. In 10 days the stock was at 158, a paper loss of $5000. The put gained $1500. Support area
37
www.nisonoptionsacademy.com
Nison Candle strategies for portfolio protection
Initiate long put or covered call
Candle pattern (such as doji) as resistance Exit protection (may want to give a few sessions due to possibility of Falling Off the Roof pattern)
38
www.nisonoptionsacademy.com
Nison Candle strategies for portfolio protection
What are two reasons to exit protection?
Doji at resistance
www.nisonoptionsacademy.com
39
As per non-disclosure agreement, you are legally bound not to share this information including handouts
Candlestick Secrets for Profiting in Options Seminar Nison Candlesticks to Guide Your Option Trades
40
Nison Candle strategies for portfolio protection
Reversal candle
Western support area or bull candle closed out short calls or long puts (how many depends on confidence level (i.e. strict candle criteria, western confirmation)
www.nisonoptionsacademy.com
41
Nison Candle strategies for portfolio protection
Looking for temporary move to 31.50 Mkt @ 33.25 buy 32.5 put @ .80 Reached target but no reversal signals (worth 1.60) So ride it down to 30.50 until at bull engulf put @ 2.25.
www.nisonoptionsacademy.com
42
As per non-disclosure agreement, you are legally bound not to share this information including handouts
Candlestick Secrets for Profiting in Options Seminar Nison Candlesticks to Guide Your Option Trades
Nison Candle strategies for portfolio protection
You’re long 100 shares of the market, Nison Candle Scanner alerts you to bear engulf @625. Worried next support starts at top of window near $590. With market @ 625 sell 630 call @19.20 At morning star call mkt @ 595. Close call @ 6.00 = $1,325 profit on call (but did have a paper loss of $3500 on your market)
www.nisonoptionsacademy.com
43
As per non-disclosure agreement, you are legally bound not to share this information including handouts
“I was long a stock and saw bearish candles so I bought a put to protect my position.” “Being able to employ some defensive timing measures REALLY reduces my anxiety” “The candles provide the final piece before I initiate a defensive call/put position – the gun is loaded and primed, but candles provide the spark for detonation. NO SIGNALNO ACTION” 25
Nison Candlesticks for Portfolio Protection How can I boost or preserve profits even when my core markets are falling? Use Nison candlesticks for pinpoint timing entering and exiting covered calls and protective puts © Steve Nison’s Candlecharts.com
26
www.nisonoptionsacademy.com
Examples of when to protect portfolio:
• • •
•
www.nisonoptionsacademy.com
Bearish candlestick Bearish western indicator At resistance (especially with bear candlestick) Falling off the roof
27
As per non-disclosure agreement, you are legally bound not to share this information including handouts
Candlestick Secrets for Profiting in Options Seminar Nison Candlesticks to Guide Your Option Trades
Covered call: Selling (or writing) calls while at the same time owning an equivalent number of shares of the underlying instrument. Protective Put: Buying puts while holding shares of the underlying stock. 28
29
Remember: If you are scared about a major moveexit the position!
30
As per non-disclosure agreement, you are legally bound not to share this information including handouts
Candlestick Secrets for Profiting in Options Seminar Nison Candlesticks to Guide Your Option Trades
www.nisonoptionsacademy.com
31
What defines a trend?
• • • •
Higher highs and higher lows Chart of higher degree Price above a moving average Dual moving averages – and use golden and dead crosses
www.nisonoptionsacademy.com
32
Overview: Covered calls compared to long puts Puts when: • IV is not too high compared to what is “normal” • Don’t want to worry about being called away by using a covered call. • Worried about a big move where call premium for a covered is not enough protection • Pure insurance Covered calls when: • Income generation • Expect choppy market • IV is overextended • Time decay in your favor • High price market makes longs puts too expensive
www.nisonoptionsacademy.com
33
As per non-disclosure agreement, you are legally bound not to share this information including handouts
Candlestick Secrets for Profiting in Options Seminar Nison Candlesticks to Guide Your Option Trades
Nison Candle strategies for portfolio protection Long this market and want to buy a put How much protection do you want? Deeper ITM more expensive, but higher delta OTM may not help much, due to lower delta ATM – have 50% delta which gets larger as options becomes more ITM. Note: Can get 100% delta by doing 2 ATM puts.
www.nisonoptionsacademy.com
34
Nison Candle Strategies for portfolio protection
Use the precision timing of Nison candles to help avoid giving up profit potential by doing a covered call or protective put prematurely.
www.nisonoptionsacademy.com
35
Nison Candle strategies for portfolio protection
Have SP in retirement account. Worried about a move to 126. Mkt @ 138 Buy a 30–day 135 put @ 3.30 Cover at support at 126 put @ $10 Paper lose on mkt of $1200 on 100 shares and made $670 on protective put
www.nisonoptionsacademy.com
36
As per non-disclosure agreement, you are legally bound not to share this information including handouts
Candlestick Secrets for Profiting in Options Seminar Nison Candlesticks to Guide Your Option Trades
Nison Candle strategies for portfolio protection
I owned GS. I bought 5 Sept 160 puts to cover my 500 shares of GS when the stock was at 168. The put cost me 5.30. In 10 days the stock was at 158, a paper loss of $5000. The put gained $1500. Support area
37
www.nisonoptionsacademy.com
Nison Candle strategies for portfolio protection
Initiate long put or covered call
Candle pattern (such as doji) as resistance Exit protection (may want to give a few sessions due to possibility of Falling Off the Roof pattern)
38
www.nisonoptionsacademy.com
Nison Candle strategies for portfolio protection
What are two reasons to exit protection?
Doji at resistance
www.nisonoptionsacademy.com
39
As per non-disclosure agreement, you are legally bound not to share this information including handouts
Candlestick Secrets for Profiting in Options Seminar Nison Candlesticks to Guide Your Option Trades
40
Nison Candle strategies for portfolio protection
Reversal candle
Western support area or bull candle closed out short calls or long puts (how many depends on confidence level (i.e. strict candle criteria, western confirmation)
www.nisonoptionsacademy.com
41
Nison Candle strategies for portfolio protection
Looking for temporary move to 31.50 Mkt @ 33.25 buy 32.5 put @ .80 Reached target but no reversal signals (worth 1.60) So ride it down to 30.50 until at bull engulf put @ 2.25.
www.nisonoptionsacademy.com
42
As per non-disclosure agreement, you are legally bound not to share this information including handouts
Candlestick Secrets for Profiting in Options Seminar Nison Candlesticks to Guide Your Option Trades
Nison Candle strategies for portfolio protection
You’re long 100 shares of the market, Nison Candle Scanner alerts you to bear engulf @625. Worried next support starts at top of window near $590. With market @ 625 sell 630 call @19.20 At morning star call mkt @ 595. Close call @ 6.00 = $1,325 profit on call (but did have a paper loss of $3500 on your market)
www.nisonoptionsacademy.com
43
As per non-disclosure agreement, you are legally bound not to share this information including handouts
