Candlestick Secrets for Profiting in Options Seminar Nison Candlesticks to Guide Your Option Trades

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Zoe Maxwell
6 years ago
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1 I was long a stock and saw bearish candles so I bought a put to protect my position. Being able to employ some defensive timing measures REALLY reduces my anxiety The candles provide the final piece before I initiate a defensive call/put position the gun is loaded and primed, but candles provide the spark for detonation. NO SIGNAL- NO ACTION 25

Use Nison candlesticks for pinpoint timing entering and

2 Nison Candlesticks for Portfolio Protection How can I boost or preserve profits even when my core markets are falling? Use Nison candlesticks for pinpoint timing entering and exiting covered calls and protective puts Steve Nison s Candlecharts.com 26

3 Examples of when to protect portfolio: Bearish candlestick Bearish western indicator At resistance (especially with bear candlestick) Falling off the roof 27

4 Covered call: Selling (or writing) calls while at the same time owning an equivalent number of shares of the underlying instrument. Protective Put: Buying puts while holding shares of the underlying stock. 28

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6 Remember: If you are scared about a major moveexit the position! 30

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8 What defines a trend? Higher highs and higher lows Chart of higher degree Price above a moving average Dual moving averages and use golden and dead crosses 32

9 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 not enough 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 33

Deeper ITM more expensive, but higher delta OTM may not help much, due to lower

10 Nison Candle strategies for portfolio protection Long this market and want to buy a put How much protection do you want? Deeper ITM more expensive, but higher delta OTM may not help much, due to lower delta ATM have 50% delta which gets larger as options becomes more ITM. Note: Can get 100% delta by doing 2 ATM puts. 34

11 Nison Candle Strategies for portfolio protection Use the precision timing of Nison candles to help avoid giving up profit potential by doing a covered call or protective put prematurely. 35

Nison Candle strategies for portfolio protection Have SP in retirement account. Worried about a move to 126.

12 Nison Candle strategies for portfolio protection Have SP in retirement account. Worried about a move to Buy a 30 day Cover at support at 126 $10 Paper lose on mkt of $1200 on 100 shares and made $670 on protective put 36

13 Nison Candle strategies for portfolio protection I owned GS. I bought 5 Sept 160 puts to cover my 500 shares of GS when the stock was at 168. The put cost me In 10 days the stock was at 158, a paper loss of $5000. The put gained $1500. Support area 37

14 Nison Candle strategies for portfolio protection Initiate long put or covered call Candle pattern (such as doji) as resistance Exit protection (may want to give a few sessions due to possibility of Falling Off the Roof pattern) 38

15 Nison Candle strategies for portfolio protection What are two reasons to exit protection? Doji at resistance 39

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17 Nison Candle strategies for portfolio protection Reversal candle Western support area or bull candle closed out short calls or long puts (how many depends on confidence level (i.e. strict candle criteria, western confirmation) 41

Nison Candle strategies for portfolio protection Looking for temporary move to 31.50 Mkt @ 33.25 buy 32.5 put @.

18 Nison Candle strategies for portfolio protection Looking for temporary move to buy 32.5 Reached target but no reversal signals (worth 1.60) So ride it down to until at bull engulf

Worried next support starts at top of window near $590.

19 Nison Candle strategies for portfolio protection You re long 100 shares of the market, Nison Candle Scanner alerts you to bear Worried next support starts at top of window near $590. With 625 sell 630 At morning star call 595. Close 6.00 = $1,325 profit on call (but did have a paper loss of $3500 on your market) 43

Candlestick Secrets for Profiting in Options Seminar Nison Candlesticks to Guide Your Option Trades

Candlestick Secrets for Profiting in Options Seminar Nison Candlesticks to Guide Your Option Trades I was long a stock and saw bearish candles so I bought a put to protect my position. Being able to employ some defensive timing measures REALLY reduces my anxiety The candles provide the final piece before