So I have a new trading strategy I’m learning for options called Inside Bar. There’s a lot more than that to it, but if you are options curious or looking for ways to make money in a up/down/bear/bull market, this seems to work. It takes practice, and especially discipline not to enter prior to a trigger!!
Basically on the 1 day chart, the daily candle is “inside” the previous days candle. What that signifies is consolidation. So you set an alert for the high and low of the most recent candle, if it drops below the trigger then it has decided a direction for now(important this doesn’t mean a new trend but for now).
You then buy a put or call or calls depending on the direction for the nearest expiration and nearest price to the current stock price. I started by buying 1 at a time to learn, now I’m up to buying 5 calls/puts at a time and scaling out as it runs. This is good for large gains in minutes.
Here my trigger was at 198.70, and I played this for 3 min, bought the options for $185 each, scaled out between $205-225 for an avg of 20% per option in 3 min.
The guy who has a ton of YouTube learning, much more to this is Trading Warz on Twitter. What I like is once you get this mastered, you are on your own.
He posts his list of stocks that have the inside bar pattern and it’s up to you to play, no following the leader, you learn a lot and can do this whether the market crashes, small caps crash, memes run, oil crashes. Doesn’t matter, you are playing both direction of a breakout.
It’s taken me a couple months, but I’m
Learning to be consistent. These are my entire acct gains for the first 3 days of this week using this method. It was hit or miss at first, still learning but I like it.
If you have any questions I’ll help with what I can, I’m still learning as well, and it’s best to set the alerts, walk through the motions without buying the first week, test it out. Write down the option price you could have entered, when you hit 20% sell, write it down like a diary and see if it’s for you.
This works best the first 1-2 hours of the day, then you are done, throw the phone in the corner and go play!