Trading learnings from Dec 18

Posted on: December 19th, 2022
By: Tadeo Martinez

When closing a spread and closing each leg individually, if the one you bought is worth nothing, you can’t sell it for $0 or $1 so do you let it expire? When closing the legs separately, do you run into the risk of the short leg closing but not the long, meaning that you’ll lose money?

If you close the position at market price it might go through, otherwise then yea, just wait until expiration.

Wait for a change in trend in the daily candles when entering a position? Or enter it once the RSI is below/above 30/70?

Once the RSI is below/above 30/70.

When trading earnings play, wait for low/high RSI?

Earnings play are more of a trend following play. If it goes up, do a bull play, if it goes down do a bear play.

Homework: come up with a stock shopping list for when prices go down.

Have any questions or comments? Write them below!


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