Candlestick Secrets for Profiting in Options Seminar3+module… · · 2011-10-27Candlestick...
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Transcript of Candlestick Secrets for Profiting in Options Seminar3+module… · · 2011-10-27Candlestick...
As per non-disclosure agreement, you are legally bound not to share this information including handouts
Candlestick Secrets for Profiting in Options SeminarNison Candlesticks to Guide Your Option Trades
“I was long a stock and saw bearish candles so I bought aput to protect my position.”
“Being able to employ some defensive timing measuresREALLY reduces my anxiety”
“The candles provide the final piece before I initiate adefensive call/put position – the gun is loaded and primed,but candles provide the spark for detonation. NO SIGNAL-NO ACTION”
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As per non-disclosure agreement, you are legally bound not to share this information including handouts
Candlestick Secrets for Profiting in Options SeminarNison Candlesticks to Guide Your Option Trades
www.nisonoptionsacademy.com
How can I boost or preserve profitseven when my core markets are falling?
Nison Candlesticks for Portfolio Protection
Use Nison candlesticks for pinpoint timing entering and exitingcovered calls and protective puts
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© Steve Nison’s Candlecharts.com
As per non-disclosure agreement, you are legally bound not to share this information including handouts
Candlestick Secrets for Profiting in Options SeminarNison Candlesticks to Guide Your Option Trades
www.nisonoptionsacademy.com
Examples of when to protect portfolio:
• Bearish candlestick
• Bearish westernindicator
• At resistance(especially withbear candlestick)
• Falling off the roof
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As per non-disclosure agreement, you are legally bound not to share this information including handouts
Candlestick Secrets for Profiting in Options SeminarNison Candlesticks to Guide Your Option Trades
Covered call: Selling (orwriting) calls while at the sametime owning an equivalentnumber of shares of theunderlying instrument.
Protective Put: Buying putswhile holding shares of theunderlying stock.
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As per non-disclosure agreement, you are legally bound not to share this information including handouts
Candlestick Secrets for Profiting in Options SeminarNison Candlesticks to Guide Your Option Trades
29
As per non-disclosure agreement, you are legally bound not to share this information including handouts
Candlestick Secrets for Profiting in Options SeminarNison Candlesticks to Guide Your Option Trades
Remember:
If you arescaredabout amajor move-exit theposition!
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As per non-disclosure agreement, you are legally bound not to share this information including handouts
Candlestick Secrets for Profiting in Options SeminarNison Candlesticks to Guide Your Option Trades
www.nisonoptionsacademy.com31
As per non-disclosure agreement, you are legally bound not to share this information including handouts
Candlestick Secrets for Profiting in Options SeminarNison Candlesticks to Guide Your Option Trades
www.nisonoptionsacademy.com
What defines a trend?
• Higher highs and higher lows
• Chart of higher degree
• Price above a moving average
• Dual moving averages – and use golden anddead crosses
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As per non-disclosure agreement, you are legally bound not to share this information including handouts
Candlestick Secrets for Profiting in Options SeminarNison Candlesticks to Guide Your Option Trades
www.nisonoptionsacademy.com
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 notenough 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
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As per non-disclosure agreement, you are legally bound not to share this information including handouts
Candlestick Secrets for Profiting in Options SeminarNison Candlesticks to Guide Your Option Trades
www.nisonoptionsacademy.com
Nison Candle strategies for portfolio protection
Long this market and want to buy a putHow much protection do you want?Deeper ITM more expensive, but higher deltaOTM may not help much, due to lower deltaATM – have 50% delta which gets larger as optionsbecomes more ITM.Note: Can get 100% delta by doing 2 ATM puts.
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As per non-disclosure agreement, you are legally bound not to share this information including handouts
Candlestick Secrets for Profiting in Options SeminarNison Candlesticks to Guide Your Option Trades
www.nisonoptionsacademy.com
Nison Candle Strategies for portfolio protection
Use the precisiontiming of Nisoncandles to helpavoid giving up profitpotential by doing acovered call orprotective putprematurely.
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As per non-disclosure agreement, you are legally bound not to share this information including handouts
Candlestick Secrets for Profiting in Options SeminarNison Candlesticks to Guide Your Option Trades
www.nisonoptionsacademy.com
Have SP in retirementaccount. Worried about amove to 126.Mkt @ 138
Buy a 30–day 135 put @ 3.30Cover at support at 126 put @$10Paper lose on mkt of $1200on 100 shares and made$670 on protective put
Nison Candle strategies for portfolio protection
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As per non-disclosure agreement, you are legally bound not to share this information including handouts
Candlestick Secrets for Profiting in Options SeminarNison Candlesticks to Guide Your Option Trades
www.nisonoptionsacademy.com
I owned GS. I bought 5Sept 160 puts to covermy 500 shares of GSwhen the stock was at168. The put cost me5.30.
In 10 days the stock wasat 158, a paper loss of$5000. The put gained$1500.
Support area
Nison Candle strategies for portfolio protection
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As per non-disclosure agreement, you are legally bound not to share this information including handouts
Candlestick Secrets for Profiting in Options SeminarNison Candlesticks to Guide Your Option Trades
www.nisonoptionsacademy.com
Nison Candle strategies for portfolio protection
Initiate long put or covered call
Exit protection (may want togivea few sessions due topossibilityof Falling Off the Roof pattern)
Candle pattern (such as doji)as resistance
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As per non-disclosure agreement, you are legally bound not to share this information including handouts
Candlestick Secrets for Profiting in Options SeminarNison Candlesticks to Guide Your Option Trades
www.nisonoptionsacademy.com
Doji atresistance
What are tworeasons to exitprotection?
Nison Candle strategies for portfolio protection
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As per non-disclosure agreement, you are legally bound not to share this information including handouts
Candlestick Secrets for Profiting in Options SeminarNison Candlesticks to Guide Your Option Trades
40
As per non-disclosure agreement, you are legally bound not to share this information including handouts
Candlestick Secrets for Profiting in Options SeminarNison Candlesticks to Guide Your Option Trades
www.nisonoptionsacademy.com
Reversal candle
Western support area or bull candleclosed out short calls or long puts
(how many depends on confidence level(i.e. strict candle criteria, westernconfirmation)
Nison Candle strategies for portfolio protection
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As per non-disclosure agreement, you are legally bound not to share this information including handouts
Candlestick Secrets for Profiting in Options SeminarNison Candlesticks to Guide Your Option Trades
www.nisonoptionsacademy.com
Looking for temporary move to 31.50Mkt @ 33.25 buy 32.5 put @ .80Reached target but no reversal signals (worth 1.60)So ride it down to 30.50 until at bull engulf put @ 2.25.
Nison Candle strategies for portfolio protection
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As per non-disclosure agreement, you are legally bound not to share this information including handouts
Candlestick Secrets for Profiting in Options SeminarNison Candlesticks to Guide Your Option Trades
www.nisonoptionsacademy.com
Nison Candle strategies for portfolio protection
You’re long 100 shares of the market,Nison Candle Scanner alerts you to bearengulf @625.
Worried next support starts at top of windownear $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 apaper loss of $3500 on your market)
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