Option levels

[Zogman]

I recently found out that some people are using option levels with success for non forex trading.

I suggest we discuss the topic - what are they ? how do they count ? how useful are they ?

[Zogman]

Option level trading strategy.

the options trading strategy is a bounce-fly strategy.
There are no rules in forex, only regularities. The strategy is based on the following pattern: "the price tends to a strong option level, but will bounce back rather than break through it...".
The analysis of option levels is based on the results of trading in US options on the Chicago Stock Exchange (official trading reports and online trading data are used). All information is available in the public domain (reports herehttp://www.cmegroup.com/tools-information/build-a-..., and online trading data herehttp://datasuite.cmegroup.com/dataSuite.html?templ..., though you have to register on the CME websitehttp://datasuite.cmegroup.com).
The options trading period is one month, the options expiry day is the first Friday of the next month. Based on it, I consider recommended timeframes for trading one hour (H1), four hours (H4) and a day (Day)... here we partially use the "three screens rule", when higher timeframe confirms or denies the conclusions of the younger one...
Tools used in trading:
- Support and resistance levels determined from analysis of strong option levels.
- Bollinger Bands with a standard setting of 20-2.
- Zig-Zag indicator, usually two on the same chart with different settings (to be selected individually).
Determination of targets based on current price levels:
- Analysis of option levels:
o Identification of option corridor (boundaries of the pattern and possible price movement targets for upside or downside).
o Identifying option trading signals for upside or downside.
- Primitive technical analysis (scenario development):
o Turning patterns: M-top, W-bottom, Head-shoulders.
o Waves Wolf.
o Eventually, I plan to study patterns and Wave Analysis.
- Control the "realism" of a scenario based on bollinger bars:
o "confirmation" of M-tops and W-bases,
o Exceeding the boundaries of a "fair" price,
o A squeeze which implies a strong move,
o "wandering the bands".
Trading rules:
- The model is designed for medium-term trading, the distance to the target is rarely less than a figure or two, hence the entry point is determined within the limits of the built figure, you don't need to catch it up to the pip...
- Stop Loss is placed in the option corridor to avoid accidental triggering... As it may reach some figures, the working lot size should be commensurate with the distance to the stop loss, the further stop is, the smaller lot is.
- Takeprofit should ideally be set according to the drawn figure, but I am actively using Breakeven at the stage of system testing. It quite often occurs, reducing profit, but it is more reliable so far.
Methods of working:
- Rebound - the ideal scheme, it is implemented at the moment of price approach to the strong resistance or support, and the expected reversal is confirmed by reversal figure and bollinger bars...
- Flat - if there are several targets of equal importance, it is possible to work in "lock", opening several deals in opposite direction... but it is important to consider the proximity to the border of the options corridor, when the reversal may start before the price reaches it and the time to expiration, when the price may just not have time to return... and the new month may give out different corridor borders.
So far, the outline of the trading system looks like this... I will break down the analysis of option levels and signals itself as I see it and post it here separately.
I can say that as part of the strategy outlined above, I executed 41 trades on GBPUSD in May, gaining a combined profit of 1256 pips (no losses), which was a 40% increase to the initial deposit size.
Ahead of the hints of a drawn result... regulars of the forum have seen my pound calculations daily... and can easily confirm or deny...
Good luck and profits to all ... the system works ... let's get on with it ...

[Rustamzhan Salidzhanov]

all new is well forgotten old... and so well forgotten that everything useful from the old has been removed.

[Zogman]

the strategy described above is not mine - easy to find on the internet - the moderator removed the link.

can't edit the post for some reason - maybe old posts can't be edited

[Anatoli Kazharski]

Zogman:

the strategy described above is not mine - easy to find on the internet - moderator removed the link.

can't edit the post for some reason - maybe old posts can't be edited

It seems you can only edit within the first three days of publication.

[Zogman]

there are many videos on youtube searching for "option levels"

in one of them

http://www.youtube.com/watch?v=KIFoGsfBFgM

it is said that the story was initially moved by blogger Tim Thinking (googled) in 2007??

[Rustamzhan Salidzhanov]

Zogman:

there are many videos on youtube searching for "option levels"

in one of them

http://www.youtube.com/watch?v=KIFoGsfBFgM

it is said that the story was originally moved by blogger Tim Thinking (googled) in 2007?

you can see it better here : https://www.youtube.com/watch?v=S7ZZB6imKPc

[GoVegas]

Rustamzhan Salidzhanov:

you can see better here : https://www.youtube.com/watch?v=S7ZZB6imKPc

it's time for a sequel

[Alexander Kobets]

Zogman:

Option level trading strategy.

the options trading strategy is a bounce-fly strategy.
There are no rules in forex, only patterns. The strategy is based on the following pattern: "the price tends to a strong option level, but will bounce back rather than break through it...".
The analysis of option levels is based on the results of trading in US options on the Chicago Stock Exchange (official trading reports and online trading data are used). All information is available in the public domain (reports herehttp://www.cmegroup.com/tools-information/build-a-..., and online trading data herehttp://datasuite.cmegroup.com/dataSuite.html?templ..., though you have to register on the CME websitehttp://datasuite.cmegroup.com).
The trading period of options is one month, the expiry day is the first Friday of the next month. Based on it, I consider recommended timeframes for trading one hour (H1), four hours (H4) and a day (Day)... here is partially used "the rule of three screens", when higher timeframe confirms or denies the conclusions of the younger one...
Tools used in trading:
- Support and resistance levels determined by analysis of strong option levels.
- Bollinger Bands with a standard setting of 20-2.
- Zig-Zag indicator, usually two on the same chart with different settings (to be selected individually).
Setting targets based on current price levels:
- Analysis of option levels:
o Identification of option corridor (boundaries of the pattern and possible price movement targets for upside or downside).
o Identifying option trading signals for upside or downside.
- Primitive technical analysis (scenario development):
o Turning patterns: M-top, W-bottom, Head-shoulders.
o Waves Wolf.
o Eventually, I plan to study patterns and Wave Analysis.
- Control the "realism" of a scenario based on bollinger bars:
o "confirmation" of M-tops and W-bases,
o Exceeding the boundaries of a "fair" price,
o A squeeze which implies a strong move,
o "wandering the bands".
Trading rules:
- The model is designed for medium-term trading mode, the distance to the target is rarely less than a figure or two, hence the entry point is determined within the limits of the built figure, you don't need to catch it up to the pip...
- Stop Loss is placed in the option corridor to avoid accidental triggering... As it may reach some figures, the working lot size should be commensurate with the distance to the stop loss, the further stop is, the smaller lot is.
- Takeprofit should ideally be set according to the drawn figure, but I am actively using Breakeven at the stage of system testing. It quite often occurs, reducing profit, but it is more reliable so far.
Methods of working:
- Rebound - the ideal scheme, it is implemented at the moment of price approach to the strong resistance or support, and the expected reversal is confirmed by reversal figure and bollinger bars...
- Flat - if there are several targets of equal importance, it is possible to work in "lock", opening several deals in opposite direction... but it is important to consider the proximity to the border of the options corridor, when the reversal may start before the price reaches it and the time to expiration, when the price may just not have time to return... and the new month may give out different corridor borders.
So far, the outline of the trading system looks like this... I will break down the analysis of option levels and signals itself separately, as I see it, and post it here separately.
I can say that as part of the strategy outlined above, I executed 41 trades on GBPUSD in May, gaining a combined profit of 1256 pips (no losses), which was a 40% increase to the initial deposit size.
Ahead of the hints of a drawn result... regulars of the forum have seen my pound calculations daily... and can easily confirm or deny...
Good luck and profits to all ... system is working ... will be testing it further ...

Hi , lately I am very interested in option levels, I even managed to trade on them in the long run...) Can you tell me how to register herehttp://datasuite.cmegroup.com....?

[Zogman]

https://www.mql5.com/ru/blogs/post/643934

HOW TO CALCULATE CME OPTION LEVELS

July 11, 2015, 11:30 am

SERVER MURADASILOV

[Mr. Trillioner]

Zogman:

https://www.mql5.com/ru/blogs/post/643934

HOW TO CALCULATE CME OPTION LEVELS

July 11, 2015, 11:30 am

SERVER MURADASILOV

there is plenty of this stuff on the net! Only thing is, who has verified this info? Is it correct to assume so? Black-Scholes method or whatever the fuck it is? ))