Using 1 ATR to Pick Targets & Exits | Long Options (2023)


Long Options | 6-26-23
Characteristics and Risks of Standardized Options

When does it make sense for options traders to be an option buyer? Join your education coach, Barbara Armstrong, to discover techniques to minimize the impact of time decay and to potentially take advantage of buying call or put options.

In today's webcast, we had a look at the overall market and which sectors were recently showing strength. We then placed 3 example trades. All were long calls with both targets and exits based on the ATR (Average True Range) of each individual stock.

Options involve risks and are not suitable for all investors. Please read the Characteristics and Risks of Standardized Options carefully before trading

3 month return:
4 Week Return:
Note: “Scripts: Not a recommendation for use and accuracy not guaranteed”


TD Ameritrade Clients, please click this link for a 1-on-1, complimentary personalized thinkorswim® walk-through:



Getting Started with Options: Long Puts:
Getting Started with Options: Long Calls:

Long Options Playlist:

Long Options: Example Trading Plan for 1 ATR Strategy:

Getting Started with Options Playlist:
Trading a Smaller Account Playlist:

Portfolio Management Basics: Short Term Targets:

#TDAmeritrade #thinkorswim #barbaraarmstrong #TraderTalks



Well, Good, morning, everyone Welcome to long options and a fresh new week of trading.

My name is Barbara Armstrong and the coach with Tdameritrade and delighted to be with you.

This morning.

As, always, We have a lot to cover.

So the market has been largely up trending, but pulling back for a few days.


What do we do when we're in that kind of situation? Well? Sometimes what we can do is kind of rub our hands and say.

Hey, um, .

You know, a couple of days of pullback may be followed by a trend continuation and do we have some stocks in the marketplace that are looking like, they might be doing that very thing.


How can we take advantage of that using long options, so that's going to be our topic for today? Um? We've got tons of people with us.

Live I wanted.

You know, just say, a quick, hello to SIM architect, and Ellie and Suzanne and Jeff and Click Titian and the rest of the gang, Claudia and Ron and Bill and Rocky and AP 5, 14 and Sherry.


You all for being here.

It's, really awesome to you know, have a class that is live and what you know where we bring this class to life.


If you have questions, don't hesitate to type them, in., Um and I will Respond quickly.

Ron is saying that he has no audio.


Assuming everyone else can hear me.

Okay If.

You can't, please type that into the chat.

Um, Ron, , try hitting refresh.

Um, and that will likely solve your problem.


You were watching this in the archives know that you to have a voice.


You've got any questions, just type them into the comments, section.

And every day that I am here, I, checked those., I've already gone through them and I'll get back to you relatively quickly.


Third way is through the land of Twitter at BArmstrong.




A is my handle? Um And.

So you know, that's, just another way for me to be able to reach out to you and you to be able to reach out to me, So, I hope, you choose to take advantage of that.

Okay so clipping, right along that everything that we do in this class is for education and information, purposes.

Only., None of it is to begin to be construed as a recommendation on the part of Tdameritrade, or myself know that options involve risk.

And they aren't suitable for all investors.


You are new to tdameritrade.

You have to apply for option trading privileges and not all will qualify when we buy a call or buy a put to open a position.

How much could we lose? We could lose the entire amount.


So thanks everybody for getting back to me.

It looks like, um.

The sound issue was limited to Ron.


Sometimes you put your your laptop on mute.

So, try hitting the mute button that has hit me in the past, as well.

Um also, um.

You know that we used to think or swim paperMoney platform, and it's a great way to learn it sounds.

It looks like smells like feels like real money, but it's not.

There are some nuances and differences and all point those out as appropriate for us as we go along.

But it's, the paperMoney platform is a great place to be able to hone your skills and become more familiar with the platform prior to going to your live account, And.

While we focus on technical analysis in this class, other approaches, including just watching the news in front of my mental analysis can provide an important component.

To, our trading as well.

Okay? No, that all investing involves risk.


We've got Ben how he has just joined us in the chat.


Welcome to Ben.

Glad that you are here.

Ben's Twitter handle is at Ben, Watson, Underscore, T, d, A, um, and you'll want to follow Ben as well.


I've got one announcement today, We're going to go out and do a quick market.

Overview., We um, had a break last week because of Juneteenth.

So, we didn't have this class, so we're going to go back way back in time for us to all weeks.

And take a look at the three trades that we place too were out of and one we're still in.

None of them were one ATRUM target trades., We, had, um, to swim Swing trades in one trade with a technical target, So we're going to go back and do a little, um, have a little peek at those and then we're going to spend the rest of the time or the majority of the time on A place in new example, trades and I just saw there's someone in the chat chat, ., Whose handle is Frank.

No mustard like a Frank is in a hot dog.

I like that's, very clever like that., Okay.

So let's get right down to business.

Okay The, one announcement.

And you know, it is Twitter related., Um, And.

You know, you may say, Barb.

You've already talked about this and I have.

But this is the fourth Um, , 1/4 person, who's, um, pretended.

They are me.


The last four weeks.

And, you know, I, don't want anyone to end up scammed.


So you know, just know that you see, they they're clever, they'll, they'll, add an extra change the underscore to a dash or add an extra an aura T.


This time they added a zero at the end, But.

It is not me.

This is a scammer.

I will never reach out to you and Offer.

You a crypto deal., Bitcoin deal, some kind of private education for which you only have to pay me, X, amount., Yeah, I'm that would know Coach will do that.

So I, just want to be sure that you're aware of that end of announcement.

Okay?, So, let's, come and have a look at what's going on in the market.

Spoiler alert.

We may be looking at Packard today or I think of it as speaker because I always think of Um, the symbols.

But let's start with the S and P.


This is just a three month.


Let's, go to your today.


This a little No, you know, more of a window and you know.

So we see that you know.

This trend has basically been uptrend, trending., We, pause for a while here when a whole lot of nowhere for, you know, pretty much all of April and most of May.

And then we broke out.


Then this last week, we've been kind of consolidating and pulling back pulling back to what you might ask.

Good question, because I wondered the same thing when I came in this morning, well, pulling back to this previous high that was established here last August.


We had broken through that to hit a new one year high.

And now it's kind of coming back and hanging out right in this neighborhood.


The question is, will it hold now? When? We you know, come up and look as I like to say, up close and personal.

We you know.

We have these last two candles, candles of indecision or candles , indicating that.

We may be seeing a change in direction.


It occurs at a support level.


Can we bank on that?? Well no, Nothing is 100%, but it gives us an indication that this pullback, which looks like kind of in a long, gated, both flag, maybe.

You know, coming to a close No word came up.

And then came down for a few days.

So and it's sitting at a support level.



This index up, you know, 13% year to date.

So intermediate term would be considered bullish.


Term, We've had a little bit of a pullback.


You know, where are we? In the context, of, you know, when we look at, you know, the longer term Well., Yes, 200 Day, moving average has been down trending, but it's dare I say, almost looking like it's.

It was going sideways for quite a while.

Because index that's.

This long takes a while to turn that ship around, but it looks like it's, even starting to move a bit to the upside When.

We take a look at where we are in comparison to where we were at the all time market.



This is going to be approximate because I'm not Will be dead on But.

You know, we're still down about 10.

You know.

But you know up 13% year to date.

Now when we come.

And we look at the NASDAQ Kind of similar looking pattern right now off the all time highs.


We still down a bit? Yeah.

Again down about 10., You know, which, given that this index was down 30% last year, or in that neighborhood, you know.

We've come a long way, back, baby, right? So.

Here was October .

13th when you know it was a pretty spectacular day in the markets.

Things Gap town on the open and then rallied hugely throughout the day.

But again, when we come in, and we look at this year today mean, that has been just pretty much marching, right up the hill up 35% year to date and then similar to the S and P the last four or five days.

Creating, a bit of a bull flag, pattern.


If you want to draw a line because that's the way we tend to roll with technical analysis, right, Ben.

We tend to draw lines., You know, , it's kind of in the neighborhood of this previous Resistance, level.

Is this going to hold his new support? And.

You know, I will just have to wait and see.

You know, yesterday or Friday.

You know.

We had an inside day in the neighborhood of a potential support level.

And so some might have expected today., You know for it to be an up trending gay And yet we're down, almost 1% So, just because we have a candle pattern, and Friday.

If I had been talking to you, Friday., Yeah, Dang, it., Let's, just come in., A, little, rusty., I, leave for a few days.

And my skills just take a vacation to we had both a doggy pattern here and an inside day.


So that was kind of like a double.

Um yeah, bullish indication that this pattern you know.

This pullback might be complete.

And yet.

Here we are.

On Monday down, 1% Like.

What the heck? Okay How about the Dow has been kind of like the sad sister so far this year, you know where the NASDAQ's up almost 35% year, To date.

The Dow is up a paltry It's in fourth place.

My friends, .

It's in last place of the four major indices.

You know, up 1.7% year to date.

It's been going kind of a whole lot of nowhere.

You know.

We've seen some lower highs.

Some higher, lows.

It looked like it was breaking out.

Where is it now? Kind of right back into this., Range., Now, it's coming back to the 30 Day.

Might that hold his support? Well.

It might.

But you know, it's been weaving back and forth through that., That, 30 Day, moving average all year long.

So one might not expect it.

To act as a support level.

Although we have, you know, A doggy type, pattern.

A candle of indecision at a potential support level.

So it might You just have to wait and see now.

How about the Russell? So.

This is our small caps, The, biggest of the small boys.


You know, , here's.

Another index up 3.76% so more than twice as bullish as the Dow, but still like nothing to write home, about., Really Um.

And we had it kind of in this tighter range within a bigger range.

Yeah that lasted from March through.

Um, the beginning of June.

And then it broke out.



And has come back to retest All resistance isn't now, becoming new support.


It looks like it might be.

It's also where you know you've got your 30 Day, moving average just coming up.

So it's, kind of like is that like a double potential support level.

And again, like I said, with With, the Dow.

You know.

This 30 day, moving average, hasn't really been behaving as a support level in this neck of the woods.


You know, might this be a turning over a new leaf.

So to speak? It could be.

Okay, So, that's what's going on with that.


What about the VIX? Well as spite of everything in the hat, and that's been happening in the market.

I go out of town for a few days, and I mean, this is the lowest 12.73 like seriously with all that's going on in the markets in the world like I'm, I don't, even know what to tell you.


The lowest we've seen in three years., Absolutely, stunning.

And, even though it's up up a little bit today, I mean.

It is still Um.

You know, really, really low compared to where it's been in the last three years.


So what is that telling us? Well, maybe it's telling us that People are not as concerned Um.

Some might say as they should be ., Somebody just say.

You know.

We've gotten more accustomed to living with this uncertainty.

Um that there could you know this inverted yield, curve.

It's been around for a long time.

These dotted lines are just lines that I drew and I have said, the default for them to be dotted.

They are Fibonacci lines.


Just this is a line that I drew to indicate you know, a ceiling or resistance and a floor or support.


This is broken down.

Below., You, know.

The support level is previous support., So, it's, hitting, you know, new lows, which is a sign of confidence.


Now, what about? Um, you know, which., Which sectors have been the strongest.

Now, if we look at the last three months, And, I, just customize this.

I, added description.

This is a public.

Watch list.

You just come to public.


Then whoops come down to this public and come down to sector indices.


This is, you know what I brought up here and then I added description, because I don't know what s and P 545 means Turns out.

It means the tech sector.

And even though the tech sector is down a bit today.

We can see over the last three months.

It's up more than anything else., Technology, consumer, discretionary and communications.


The top three But.

Look at this.

When we go to four weeks, We got a new guy in town.

So still consumer, discretionary and technology.

But industrials has kind of done a hip check.


You know, with communications, communications, no like in the middle of the pack., I, mean, still up, but money, not coming in.


This sector, the way it is to industrials And.

So today, we're going to look at the industrial sector., Okay?, Today, We're going to focus on the industrial sector, because we've spent a lot of time on consumer, discretionary and technology because you know, they have been the strongest., You know, it.

They have been the strongest.

And if we're trying to go with the general direction of the market , which has been bullish, which sectors had been needing the market consumer, discretionary, technology, industrials.


So you know, Part of it is that I didn't get out of the industrial sector.

So that's where her examples are coming from today, and I know that I get asked a lot about that.

Like, where do I come out with the examples that I do? And.

So one of the things that I did Sorry.

Let me just compress this.

A bit is I.

Then?, And I got to update this.

Because this hasn't been updated in years.

I simply went out and did a search for stocks that are part of the industrial sector that are also part of the S and P the thinking being that if they're part of the S and P, they're, probably pretty big companies, and, um, fairly heavily traded.

You, know, Having said, that I'm gonna start By looking at a couple of sectors., Um, It's positive, but colored red Mike.

When we go back here, because you know, money, it's, still up.


There hasn't been as much flowing in Um so.


We look at NSC, for example.


You see, it's still up over the last four weeks.


There hasn't been as much flowing in.

And this is a three year.


Let's, come back and look at As we're, looking at shorter term trades, although within SC like the interesting thing like when we look at this, you know, it's still down year to date, because it took a fall here, But.

You know, from this low Hmm.

Starting to certainly move to the upside.

You know, up, 12., You know.

But this is an expensive stock at 2, 21.


Then the next question might be.

Does, it trade over a million shares a day, So.

If I start hovering over these previous bars, You, know., Volume, Yeah.

Close to a million.

So then.

But you know, kind of on the low end of a million shares a day, which are poor trading options might be one of our rules.


Then if we look at better, ask spread., We've got a 40 cents.

So this actually would meet our requirements because we've got 20 times the volume.

We've got a 40 Cent bit, aspirin, bad., Um So.

If we wanted to use this as an example, we could And actually.

It wasn't on my list., But, let's, come back to that.


We can work through that one together., Okay? So.

And one of the advantages When.

We look at a stop like this, it's, not already like a video.

I, You, know, up 176% year, today., You know, which has had an extraordinary running .


We still, you know, do well by trading a stock like NVIDIA., They possibly., You know, .

But maybe this one, you know, is one of those stocks that they may be looking at.

Um that some may be looking at if they wanted to diversify out of the tech sector.


So I wanted to look at a couple of strokes that didn't make the cut.

Yeah and just so that we can kind of go through that thought, process.

So I, look at this and I'm thinking Well.

This looks interesting.

Uh, um., You, know, it's., You, know, a bit of a bull pattern here.

And then it broke out with volume, like with some gusto above it hit a new high.

This is a new six month, high, pulled back in his bouncing nicely., I mean, that trend looks kind of delicious, doesn't, it? But.

If we come to the trade tab, and we look at it, it's traded, half a million shares today., Well, we're, early early in the day.


But you know when we look at this bit of spread Wanted, trades only monthly's well, actually.

This doesn't look as bad as it did when I first looked at it, this morning, the bed ask, look, Super wide.

But this is 35 cents .

So it's, just On the edge of acceptability.

You know.

So we could look at that and go.

Oh, well, you know, what? Maybe that isn't so bad.

And, if we come and look at our turned on this and say, does it normally trade over a million? Well,? This is like a million 7,000,006.


It does normally trade over a million shares a day.


If we look at this, and we say, Well, if we wanted to do a 1 80 are on this .

This is interesting.

This was supposed to be my one that didn't make the cut.



If we look at this, and we say, well, Yeah, We're, looking at this pattern.

And, we're, saying, okay, it went from 63 to 69.

So let's call that a $6 wide.


Could it go then, from 69 to 75 ? That might be how a technician would look at it., You know, up another $6, and I'm using kind of round numbers.


Then if we look at this and say, Well, what's, our 80 are on this.

If it's, a dollar 25, that's, almost more like a swing trade.


Could we do that with with F T, V., So, F, T, V., Are high on the day is 71.



If I take a look at that, and our 18 on this is 1 26., Let's, bring up.

The, note., Switch, gadget., To, our scratch pad.


You know, if we're looking at our trading a smaller account, we started the year with 20,000.


Our rule was not to risk more than about $500 on anyone trade, even though we're up, pretty substantially., You know, 26 8 75., By, 20,000., Right up, almost.

We're up over 34%.


Are we going to change our Max? Risk No.

Because at the beginning of the year.

This represented like to You know, over 2% like 2% is 400.


This is maybe 2.5% And.

So even though it's a lower percentage now, you know, if you had a million dollar account, you might not be willing to rest 2% You might say, I'm only willing to risk half of 1.

And it it.

You know.

One of the things is.

You know, account, size, So, we're, going to.

Um, scroll down, now., And, just say, Okay.

If we're looking at F, t, V as a 18 example.


18 is a dollar 26.

I'm just going to add some.

Extra space here.

And so our target on this is going to be 71 94, which is the high so far today, plus 1, 26.

And that equals and feel free to check my math, because we all know I'm not sitting at the front of the bus.

Um, necessarily with my math skills.

Um, 71 09., That's, today's, low minus 1 26., That's, 68 93., Okay So.

How would we put this in Well, we're going to come to the trade town.

I'm going to actually Little drawing on here.

This is the day we entered.

Yeah and we're going to come out to July so 25 days.

That's, the minimum we'd want to do, We could come out actually, even to August and give ourselves more time.


Would we want to do that? Well? The main reason for wanting to do that? And we have a 30 Cent bid, Ask spread.

Is that our stay to The damage from theta will be less You, know, here, it's going to be three cents a day.

Oh, isn't.

This interesting? This is still three cents a day.


Chances are as we approach expiration.

This is going to accelerate.

So we're, paying a little bit more for this option, but we're getting.

You know, double the time.

Magdi history.

Graham script is in the tweet pin to the top of my Twitter feed.

Somebody's asking if I can share that.

And that's, where it is.

So, just in the interest of time, Sidney.

If you wouldn't mind going out and grabbing that and ban if you have a sack, maybe you can post it in the chat, but we are going to buy.

And instead of doing by custom with O C o, which is what we're doing.


Just this is just a different way of accomplishing the same thing.

I'm going to come down to advanced order., First, Trigger, sequence, right, Click, create an opposite order., And we're going to make this market order, that's, good, til canceled.


And we always put in our target first.

This is bullish.

So we're buying a call.

And our target is 73 20.


When the straw hit 73 20, we want out.

Or if it comes down.

And it hits 68 93.

Now at the end of the day tomorrow.

This is a trade that we are going to manage daily.


We would go in.

And because this is between $5100.

We're going to move the stop up.

My exit is wrong.

71 09 .


The stop 71 09., And, it's, a dollar 26.

68 0, 69 83., 69, 83, transposed, the number 69, 83, So.

Here's, an example of how to adjust something come in.


This won't have made any difference.


You never know if the gap down tomorrow., 69 83.

And, having said, that, like when we come, and we look at this Thank, you, Ben.

So when we come back.

And we look at this Um, we have in a target to exit when it hits 73, 20 Right or 69 83, and I'll fix this in the script here.

Um, but is that a guarantee? Know, how much could we lose? 400 Does that mean, our position, sizing requirement? Yes, it does.

So we're going to put this in our long call bucket and make a note here that this is a 1 80 or trade.


If you treat a lot, you may think., Oh, I, remember, that., Yeah.

It gets hard to remember.

At least it gets hard for me to remember, may not be hard for you.


You know, sometimes I get on the struggle bus with this stuff.

So, 69 83., Okay.

So we'll, wait for that one to fill.


We go.

Now let's, go and look at another long call that we put in.


When we come to the monitor tab now here's, our ftv.

We haven't made any money on it.


What is going on now? We placed two weeks ago when we met We place to trade on Apple.

So we bought a long call.


85, call., We are up 34% So.

You know, we've given back a little bit of our profit today, which you know, And.

What was the deal with this? So you'll, notice that I added notes as a column here.

And you can come to the Sprocket just type your notes and add it.

If you don't have it.

I, also like having this profit and loss, column.

I do that on pretty much everything.


This was a target based on an inverted head and shoulders pattern or targeted on.

This is 1 89., So let's, go and look at our friend Apple.


There are times the charm.


What did Apple get to today? 1, 88, 05.


Now we have this candle indicating that.

It could pull back for a few days.

So I like to run a democratic class.

We have over 200 people.


Do we stay? Or do we go Because, you know, our target was 1 88, 09., We place.

The trade on this date.

We've been in this for two weeks and keep in mind.

You know, it later is going to be chipping away at our profit to the tune of.

You know, eight bucks, a day.


We want to stay and wait for it to go up? Or.

Do we want to absent? Sydney's voting exit., Would? Anyone else like to.


We have one stay.

We have four goes .

Five Go, take the You know, I'm, starting to hear I'm starting to hear Steve Miller in the background.

Take, the money and run, So I have to stays.

And it looks like we have about a dozen goes.

So we already have an exit in place.


How do we manage that?, Well, here's, our Our target.

And here was our stop.


It lost half its value.

We wanted to get out.

So we're just going to go and cancel that.

That whole thing., Cancel, the OC EO, group., So now, you'll see., Somehow.

It didn't cancel that one.

Okay., It, did.


Now, you'll see that that Apple exit is gone .

And when we come to the monitor tab, and we come down here, we'll, see that there's nothing here.


We have a 35% profit on this.

We're going to take it.


And somebody is saying that they're on the fence, .

And, you know, what? I, totally understand that position, but In making no decision If.

You stay on the fence that is in In fact, making a decision.


So we're gonna take our 4 65 and say.

You know, base, hit., You know.

We just made over $100.

Whatever that amount was.

We're going to take it and be cool with that.

Now on that day, what was happening back on June 12th, while it was my brother's birthday?, Um, yes, And I did remember to call him, but it also replace too bearish traits.

And one was on Nike.


So let's, go Look at that.


We did a swing trade on Nike., Yeah, Yeah, And so we're going to come to the monitor Tab account statement.


We also did one on Amgen.

So with Nike.

We got in for 4 20 on the 12th, 2.

Days later.

We were out for 209.

Okay? And on this one.

We had a target on this.


So, and then we had to stop.

You can see here are stop was to get out at 2.


We got out just a little bit less 209., So like I, said, there's, never a guarantee.


We were down about 50.


When we look at this, we had a swing target.

And when we put in a swing target, we are exit is if we lose if we're down, 50% were out.


So if we come to the charts, and we look at this, this was a bearish trade.

So when we look at this, it was kind of going sideways and it on this When.

We put the trade in.

It looked like it was falling.


So we said, you know.

Could we get a little win? Here? And.

It turned out that we ended up with a loss or target Was that basically the previous low? Now.

We also did one on Amgen.


Here was our target at 2, 12.


You know, and Gen.

It had fallen below this.

Support level and continued to fall.

So it had been down trending.

Came up was.

You know, heading South, again?, And.

We said, What.

If we just trade it back to the previous load to 12 and that sucker turned around and went up, and sometimes that just happens.


So how much were we? Down and again? This was another one would if we come? And we look at a swing trade, AMG, N., You, know.

And we look out., You know, this was a swing target.


You know, we said, Hey, if we're down 50% on this.

We want out.


We got in for 4 10., Um, And, where were we out? 1, 98., So actually, that one was down like 52% And again, .

We put in a stop here at 205.


We get out at 205? No We got out at 1 98.

So, just because we're requesting to get out this triggers, you know, a market order and it will fill up the next available, price., So, there's.

Our review on those three.

So we're done with that.


We had one win and two losses.

And, although that isn't what we prefer, sometimes that's the way, the cookie crumbles.


This was, you know.

Overall, the market's been up trending year to date.


What can we learn from that? Is that even though these stops were down trending? We then had an incredibly bullish week in the market.


These stocks got, you know, pulled up along with it., Okay, Okay, So, that's that one.

Um let's.


Look at deer., Well, actually, let's, stay with ones that are a little less expensive.


We did.

F, t, V.

That's, a good Honeywell., So, here's, a stock.

It's been kind of going sideways, hasn't, it?, Back, up?, A, little further.

So we had this double bottom pattern and it broke out.

And it really.

This is an example.

You know.

It went from 1, 60 6200, it, You, know.

It really didn't Reach that target that a technician might have expected.

And then it came down and it's been kind of going sideways., But it's in this industrial sector and some might say, You know.

If we're playing , I spy with my little eye., Okay?, We, just come in a little closer.

We've got a bit of a cup and handle pattern.


You see that? You know where we've seen.

It's come up here again again into this neighborhood, multiple times .

And then it broke through with some volume came back to retest.

And is moving up again.


So you know, could we do something conservative,? And this is where that one ATRUM might say.

Well, I'm, not sure of the big trend change.

Um, but I do see a technical pattern indicating that it's been consolidating.

We saw some You know, higher lows.

Here, Higher low., Without, messing with the chart.


We had a low down here, higher low., Higher lows, higher low., My, You know, this move.

And how much does it move in an average day? You know about $3 and 32 cents., And, Yeah, , 3, 32., That's interesting because it was 3 29 when I looked at it earlier.

So, our target on this, So what's, the high for the day to 02 15?, Plus, 3, 32.


If somebody wants to do that math for me, so here's another, you know, bullish, example., In, the industrial sector.

28 3, 32 and our target 202, 15., Plus, 3, 32.


If I can do it in my head to toe, five.

47 .

Free to correct if I got it wrong and the exit the logo for the day 1, 99, 45., Minus, 3, 32.

1, 96., 19., Hmm.

It should be a., Three, 13., Two or 5.

47., Okay, Kathy and I are in agreement.

Now let's come to the trade tab.

And of course.

One of the things we're looking for.


This trade, a million shares a day or more were early in the day.


When we look at the volume, You know, what have we got? A million 2 million to 900,000,009.

So, yeah, whatever Ridge, that., And.

Then bid ask spread., Is, it tight? Yep That's acceptable when we come and I've customized mine, and you can do that and save it.

I want to have the mark.

I want to have Delta.

We're, usually looking at our you know, at the money strike.

So we could either do This., You, know, July, the five or we could do the 202 50.


The $5.

You know.

The 200 has got a lot more volume., You know.

So we might prefer to stick with that by 25 20., Um And.

So if we look at that , and we say, okay, that's, acceptable., That's, acceptable., So, check, check, check., We're going to buy.

And again, we're buying custom with Oxy.


This is just a different way of putting the order in.


Why do we do it? This way? Just? Because you know, it., I think it's a little faster.


You know, just because it's faster if it You know, if it makes more sense to you, and the way you like to input things to do it, the other way you can do that.


We want to get out when its outer Bob.

We always put our target in 1st.

205, 47., You, don't have to.

But it's.

Just that repetition is the mother of all learning.

I think it's less confusing when you do things the same way each and every time.

And then tomorrow because this is over, $100., We will snug up the stop.

If it doesn't hit the target to a dollar below.


When we do the eight year strategy, often the condition is one of we want to take advantage of the way.

The trend is moving.


We may not be confident in the longer term.



We may say, Well.

If we look at this chart, Are feeling, maybe that it may be a short term, uptrend.

And, you know, if your church gets kind of mucky looking like this If, you just come here and click on chart on the right hand side and then hit chart.

Again, it'll, fix it., So say, Well, like what if it just comes back up to this 203.

And then it starts going sideways.


Then we'll have made our little game.

And we can move up in and we're out now.


It comes up.

And then it goes above this level.

Or above this previous high.

If we want to move this line I'm going to activate this drawing.

Let's, move it up to.

You know, like this high around 205.

So, if it goes above 205, and we're already out of this, could we enter another trade?? Of course we could do that kind of wash, Rinse, Repeat, no problem., Okay So.

We have put Honeywell in now.

If you wanted to do some, um additional examples.

And we are going to have time to put those in today.


Could we look at peak? Are Packer, You know, this? When.

We look at this.

Sorry., You know.

We were seeing some lower highs.

Not, a good sign., You know, in some might say it was even trading in in a bit of a downward range.


You know, keep in mind.

Industrials have been rotating into favor.

Others might say, Well.

We saw a bit of a panic pattern.


You know, there's, an art to technical analysis.

And if you're new to it, you may want to join Cameron May on Mondays, but either way, it's broken above kind of consolidated and moving to the upside today.


Could we do that?? You know, what? Let's.

Go ahead.

We'll, put in one more., You, guys keen to put in one more Okay, let's do it.

So we're going to come to the trade tab.

And with P car.


The 1 80 are on.

This is a dollar 59.

And I had already done the math on it.


The target Was 79 50, today's, high Plus, a dollar 59., Or, 81, 09., And, our access it.

78 58 Today's, low minus a dollar 59.


So this is, you know, we're expecting a trend continuation in the market.

We're expecting a trend Continuation with the industrial sector., And, we're, it's effecting that these particular stocks might continue to move to the upside.

If only for a few days.

And, we're saying, you know, Hey .

If in an average a this thing moves, a buck 59 moves up about 59 were out.

And if it moves down, this is a short term dating, strategy., If.

It doesn't go the right way we are Waving goodbye.


So to put that in .

Oh, honey., Well.

So sorry.


Go finish this up.

I wondered why I didn't hear the Ping.

We're going to put that in our long, calls.

18., Thank you for checking my math, Mr., AP 5, 14.

And now so P car., Whoops., We're coming down here to 95 to 3 10.

We've got lots of volume on this.

So, we're gonna right click anywhere on this line by single.

First, sugar, sequence., Right, click., Opposite order.

And you know, it's, sometimes some of the feedback will be like you sometimes move quickly.


One of the benefits of the archives is that you can go back and watch this at any time.


You can slow me down or back it up and repeat it.

Just make a note of about where we were in the recording so that you can just fast forward exactly the part of the recording that you're interested in.

So 76, 99 is our exit.

76, 99., 81, 09, check, check., It's, saved, Confirm and sand.

We want to buy the 77 50 calls because we're bullish chat.

We want to accept when it goes above 81, 09, check or below 76, 99, check.

We're, putting that in our long call bucket making a note that this is a 1 80 are target and exit.

Byron Hole., K, So.

You know what we have done a lot in our time.



We talked about the fact, that, um, you know, Twitter is a great way to communicate.

But don't get get scammed.

Don't fall victim to the scammers.


Only one original Ben Watson and one original bar BArmstrong, Um.

We had a look at the markets.

We looked at the three trades.

We placed back on June 12th.


We looked at Nike and am Jan.

Which were bearish trades, which didn't work out.

And we looked at Apple, and we decided to exit that at again.

And then we play.

Some, new example., Trades.

We did three We did Fastenal, Ftv and Honeywell.

So guys, that's, a wrap for today.

Thank you so much for joining me.

This is where I get a wee bit bossy, so hit like it lets other people know that you found this content, valuable., Yeah, Hit, um, the subscribe button in the corner.


You haven't subscribed to this channel.

You're gonna want to do that Turn on notifications, so you'll get a reminder.

And, don't, forget to follow Ben and I in the land of Twitter at Ben Watson Underscore, t, d, A at BArmstrong, underscore, T, d, A, So, keep in mind that everything that we do in this class is for education and information.

Purposes, only none of it to be construed as a recommendation.

Options aren't, necessarily suitable for everyone.

You want to make an informed decision on that know that when we buy a collar put in spite of where we put our exits, how much could we lose the entire enchilada know that all investing involves risks, including the risk of loss, So that's.

A wrap my friends up Next is Mr James Boyd with getting started with fundamentals.

Hope, you'll, stick aroun.


How do you use an ATR indicator for options? ›

How to use the ATR indicator and ride BIG trends
  1. Decide on the ATR multiple you'll use (whether it's 3, 4, 5 and etc.)
  2. If you're long, then minus X ATR from the highs and that's your trailing stop loss.
  3. If you're short, then add X ATR from the lows and that's your trailing stop loss.

What is the ATR exit strategy? ›

ATR Exit Sign

Traders may choose to exit these trades by generating signals based on subtracting the value of the ATR from the close. The same logic applies to this rule – whenever price closes more than one ATR below the most recent close, a significant change in the nature of the market has occurred.

What is the best ATR setting? ›

The standard setting for the ATR is 14, which means that the indicator will measure the volatility of a price based on the 14 most recent periods of time. As mentioned above, this is typically 14 days. Using an ATR setting lower than 14 makes the indicator more sensitive and produces a choppier moving average line.

What is the best ATR multiplier setting? ›

ATR typically uses between a 5- and 21-period span. Originator Welles Wilder suggested using 7. Multiples vary between 2.5 and 3.5 ATR and Wilder suggested 3.

What are the 5 exit strategies? ›

Five Smart Exit Strategies When you're ready to hand over the reigns, here are your options.
  • Merger & Acquisition (M&A). This normally means merging with a similar company, or being bought by a larger company. ...
  • Initial Public Offering (IPO). ...
  • Sell to a friendly individual. ...
  • Make it your cash cow. ...
  • Liquidation and close.
Jan 11, 2011

What are the 4 exit strategies? ›

There are only four ways to leave your business: transfer ownership to family members, Employee Stock Option Plan (ESOP), sale to a third party and liquidation. The more you understand about each one, the better the chance is that you will leave your business on your terms and under the conditions you want.

What are the three main exit strategies? ›

Here are three common exit strategies for entrepreneurs who want to put up their small business for sale or pass it on.
  • Passing the business to a successor. ...
  • Transferring ownership through a management or employee buyout. ...
  • Selling the business to a third party.

Is ATR good for swing trading? ›

In swing trading, the average true range can help capture fluctuations in volatility. So, again, you can use the ATR to set smarter stops so you potentially stay in the trade according to your plan. The range you set will depend on your risk, the stock, and market volatility.

Is ATR leading or lagging indicator? ›

The ATR is classified as an Oscillator since the resulting curve fluctuates between values calculated based on the level of price volatility over a selected period. It is not a leading indicator in that it divulges nothing related to price direction.

Which indicator is best for volatility? ›

8 best* volatility indicators to know
  • Bollinger Bands.
  • ATR – Average True Range Indicator.
  • VIX – Volatility Index.
  • Keltner Channel Indicator.
  • Donchian Channel Indicator.
  • Chaikin Volatility Indicator.
  • Twiggs Volatility Indicator.
  • RVI – Relative Volatility Index.

Which moving average strategy is most accurate? ›

Exponential Moving Average (EMA or EWMA)

Exponential moving averages give more weight to the most recent periods. This makes them more reliable than the SMA and a better representation of the recent performance of the security and hence can be used to create a better moving average strategy.

What is the best moving average set? ›

5-8-13 Moving Averages

The combination of five, eight, and 13-bar simple moving averages (SMAs) offers a perfect fit for day trading strategies. These are Fibonacci-tuned settings that have withstood the test of time, but interpretive skills are required to use the settings appropriately.

What is the best stop loss strategy? ›

The Percentage Rule

Some traders believe in determining a percentage of loss. For example, an investor may choose to place a stop-loss order at 10%, that is the stop loss will be triggered when the stock price reaches 10% below the buy price. This is one of the popular stop-loss strategies.

What is the most common exit strategy? ›

Third-party sales of businesses are the most common exit strategy—in many cases, they present the highest dollar amount in the open market.

What is the hardest way to exit from a market? ›

Key Takeaways. Barriers to exit are obstacles or impediments that prevent a company from exiting a market or industry. Typical barriers to exit include highly specialized assets, which may be difficult to sell or relocate, and high exit costs, such as asset write-offs and closure costs.

What are the 2 essential components of an exit strategy? ›

Your exit plan should be focused on two main objectives: 1) maximizing your company's value prior to your exit, and 2) ensuring that you accomplish all of your business and personal objectives as part of the exit.

What are the options for exit planning? ›

There are four main types of exit strategies businesses use to sell or dispose of their assets: initial public offering (IPO), mergers and acquisitions (M&A), private equity investment and private investment in public equity (PIPE).

What is an exit strategy example? ›

The goal is to maximize the value of your company before converting it to cash, and to minimize the amount of time consumed. The business plan needs to include alternative exit strategies. Examples include selling to family member(s), selling to partner(s), or liquidation.

How long should an exit strategy be? ›

If you want to avoid the risks associated with poor business exit planning, a long-term strategy needs to be taken. William Buck advises that it takes between 3 and 5 years to set up a business for a successful exit. Leave it to the last minute and you're stopping your company from realizing its true value.

What are exit and harvest strategies? ›

A selling harvest strategy, often referred to as an exit strategy, involves selling the company or product line to another person or company. Business owners who choose an outright sale of their company as the harvesting option sell the entire company to any entity interested in paying the asking price.

How do you read an ATR indicator? ›

Average True Range (ATR) can be interpreted in the following way:
  1. The higher the value of the indicator, the higher the probability of a trend change.
  2. The lower the indicator's value, the weaker the trend's movement is.

Which indicator to use for option trading? ›

RSI is the best indicator for option trading and best suited for individual stocks to predict the stock level frequently.

Is ATR a leading indicator? ›

The ATR Indicator, or Average True Range indicator, is an indicator that measures volatility. As such it is not a trend following indicator. It is possible for volatility to be either low or high during any trend.

How to use ATR for swing trading? ›

A day trader may want to use a 10% ATR stop, meaning that the stop is placed 10% x ATR pips from the entry price. In this instance, the stop would be anywhere from 11 pips to 14 pips from your entry price. A swing trader might use 50% or 100% of ATR as a stop.

What is the ATR bands strategy? ›

The idea behind this strategy is that markets move in waves, and these waves can be predicted using certain indicators. By using ATR Bands, traders can identify key levels of support and resistance based on atrs, which can be used to make informed trading decisions as price moves up or down.

Which indicator is best for entry and exit? ›

The entry and exit indicator that's perhaps simplest to understand is a common measurement on every commodity's graphs: The moving average. It's a general indicator of a stock's price movement over a given time.

Which analysis is best for option trading? ›

Many of the best practices for options trading come directly from technical analysis concepts. Technical analysis focuses on price. Fundamental analysis does not solely focus on price. When it comes to options, choosing a strike price is an important part of the trade process that technical analysis can help with.

What is the most powerful indicator for scalping? ›

The EMA indicator is regarded as one of the best indicators for scalping since it responds more quickly to recent price changes than to older price changes.

What is the most used scalping indicator? ›

Eight most commonly used scalping indicators
  1. SMA indicator. ...
  2. Exponential Moving Average (EMA) ...
  3. MACD Indicator. ...
  4. Parabolic SAR. ...
  5. Stochastic Oscillator. ...
  6. Volume-Weighted Average Price (VWAP) ...
  7. Bollinger Bands. ...
  8. Relative Strength Index (RSI)
May 18, 2023

What is the best indicator for 5-minute scalping? ›

EMA and RSI. The exponential moving average is a beloved indicator for 5-minute trades. Still, on Forex, a 5 min scalping strategy may include other tools to either confirm signals or find new ones. For this trading approach, we will add the RSI indicator.

What does 1 ATR mean in trading? ›

Average True Range (ATR) is the average of true ranges over the specified period. ATR measures volatility, taking into account any gaps in the price movement. Typically, the ATR calculation is based on 14 periods, which can be intraday, daily, weekly, or monthly.

Is ATR a lagging indicator? ›

Conclusion. The ATR Indicator does a good job of determining volatility. It can also help you set a trailing stop loss and figure out the position size for every trade. At the same time, it is a lagging indicator that can't determine the direction of prices or trends.

What are three leading indicators? ›

Leading indicator examples include the Consumer Confidence Index, Purchasing Managers' Index, initial jobless claims, and average hours worked.

Top Articles
Latest Posts
Article information

Author: Greg O'Connell

Last Updated: 29/11/2023

Views: 5229

Rating: 4.1 / 5 (42 voted)

Reviews: 81% of readers found this page helpful

Author information

Name: Greg O'Connell

Birthday: 1992-01-10

Address: Suite 517 2436 Jefferey Pass, Shanitaside, UT 27519

Phone: +2614651609714

Job: Education Developer

Hobby: Cooking, Gambling, Pottery, Shooting, Baseball, Singing, Snowboarding

Introduction: My name is Greg O'Connell, I am a delightful, colorful, talented, kind, lively, modern, tender person who loves writing and wants to share my knowledge and understanding with you.