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Wiki Selling TSLA Options - Be the House
- Thread starter adiggs
- Start date
Given the previous down days why is this a shooting star verses an inverter hammer or gravestone doji?
If it is a shooting star, is tomorrow's action needed for downside confirmation vs just an indication of resistance?
Good questions. I’m not qualified/experienced enough to opine definitively either way.
We’ll either find out tomorrow or hopefully @dl003 will stop by and update us in a bit. There’s a lot more under the hood that he sees and watches like flow and IV that can be instructive taken all together.
I was incanting from the book of investopedia...Fees like everyone here is speaking in Tongues .
thenewguy1979
"The" Dog
looked more like a gravestone doji indicating a reversal. Last time we had one was back in August 10th followed by a 30 point drop that play out in a week.
Yep, doggy in me is little bias as I'm loaded with Puts. Usually I would offload and reenter as they become cheaper.
Yep, doggy in me is little bias as I'm loaded with Puts. Usually I would offload and reenter as they become cheaper.
That was my plan but I'm not sure earnings today is supporting that. :/
I wouldn’t mind a nice drop, I have plenty -C230 10/21 and -C230 11/4 that I won’t mind buying to close for pennies down below. Just have to cut my longs/+C/-P on time if we do plunge (to buy them back at the bottom).
thenewguy1979
"The" Dog
Earning so far is mixed. Google fizzle while MSFT bounce, but Tesla AH showed some weakness. I think Powel also talk tomorrow. Just hang on as DI0003 mentioned.
Not to venture too far into the weeds, but today's candle doesn't really meet the criteria for a shooting star or an inverted hammer. I'd say it most closely resembles a gravestone doji. Irrespective of whatever someone may want to classify it as, it's worth noting that any of these candles are not necessarily predictive and can be invalidated by the next day's trading. I'd say they more suggest than predict.
thenewguy1979
"The" Dog
Agreed. just add some excitement as we await for another day.
Got some time so did some calculations and here the kicker:
August 10th Doji has High of 251 and Low of 243 - Close at 245 = 8 points between high and low; gaps of 6 point between Close to High and 2 point L to C
Today Doji has High of 222 and low of 214 - Close at 216 = 8 points between high and low; gaps of 6 point between Close to High and 2 point L to C
So the Doji on both days are the exact same size.
Got some time so did some calculations and here the kicker:
August 10th Doji has High of 251 and Low of 243 - Close at 245 = 8 points between high and low; gaps of 6 point between Close to High and 2 point L to C
Today Doji has High of 222 and low of 214 - Close at 216 = 8 points between high and low; gaps of 6 point between Close to High and 2 point L to C
So the Doji on both days are the exact same size.
Still holding short calls at 200/210/215/220 and added 222.50s today. Was surprised by the strength this morning but felt zero urge to roll any of them, which is a very unusual feeling for me not to have.
That call was a bit of a turning point in my mind - I'm still a megabull long-term, but this is a new era of declining earnings and slowing growth. Who's going to buy in now when they could buy in a year when GF Mexico is closer to being open?
I'm still very net long so I don't mind being wrong. Maybe Cybertruck fever will take the world by storm or FSD licensing or some other surprise. But my plan going forward is to aggressively sell ATM or even ITM calls and sell the occasional put with the premiums intending to pick up cheap shares.
That call was a bit of a turning point in my mind - I'm still a megabull long-term, but this is a new era of declining earnings and slowing growth. Who's going to buy in now when they could buy in a year when GF Mexico is closer to being open?
I'm still very net long so I don't mind being wrong. Maybe Cybertruck fever will take the world by storm or FSD licensing or some other surprise. But my plan going forward is to aggressively sell ATM or even ITM calls and sell the occasional put with the premiums intending to pick up cheap shares.
Hammer, gravestone doji, shooting star, they're not much different from one another. All point to long upper wick that is at least 2x the body. The small difference lies in how low the close is and whether it closes up or closes down. The primary prognosis is the same: strong rejection at the top. It is bearish. Not as bearish as if we close down at LOD but still bearish.
My read is it's waiting to see what GOOG, MSFT, AMZN, META, etc.. do after earnings. However, "waiting" doesn't say a lot. How it's posturing while waiting does. This is a bearish close, considering how steep the drop was. Looks like shorts taking profit while waiting, not longs initiating new positions.
My read is it's waiting to see what GOOG, MSFT, AMZN, META, etc.. do after earnings. However, "waiting" doesn't say a lot. How it's posturing while waiting does. This is a bearish close, considering how steep the drop was. Looks like shorts taking profit while waiting, not longs initiating new positions.
Can you share with us how you’re positioning yourself this week and the next few to profit from the volatility?
thenewguy1979
"The" Dog
MSFT and GOOG earnings effect on SP has been either muted (+4%) or downward (-6%) AH. META and AMZN are entering earning in the red or flat.
Seem the tones are different now vs prior QRTR.
Seem the tones are different now vs prior QRTR.
Isn't the shooting star bearish when on an uptrend though? Yesterday was hardly bullish...
just shorting 240C and -190P in case this drags out longer
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