Strategies in a Highly Volatile Market - amechine/finance GitHub Wiki
Analysis
Indexes
See FRED Indexes
Pitfalls
Do not trade options whose durations have big events, such as earnings.
Options
Downturn (Bear)
Overbought or topping stocks
- Criteria: 1) recent insider direct selling 2) RSI > 80 & MACD bearish trend 3) high volatility 4) high premium
- Approach: Sell covered call to open (striking price > purchased price)
Oversold or bottoming stocks
- Criteria: 1) recent insider direct buying 2) RSI < 20 & MACD bullish trend 3) low premium
- Approach: Buy call to open
Upturn (Bull)
Oversold or bottoming stocks
- Criteria: 1) recent insider direct buying 2) RSI < 20 & MACD bullish trend 3) high volatility 4) high premium
- Approach: Sell cash secured put to open (string price = willing-to-buy price)
Overbought or topping stocks
- Criteria: 1) recent insider direct selling 2) RSI > 80 & MACD bearish trend 3) low premium
- Approach: Buy put to open