Option trading summary – week of Jan. 18, 2022

Thursday Jan. 21, 2022
Please read the Disclaimer here.

From the trading room

Weds. evening:

Overnight
overnight trading, 4505 line is a key. if holding up, looking for 4575, 4550 call
if fails to hold, looking for 4520 call instead.

Naturus, 8:48 AM

4550 call are at the money
goes up 6.25 pts
4575 call goes up 3pts

Naturus, 9:30 AM

4550 call take profit. as soon as ES goes above 4550 level, calls buyers selling.

jaf, 9:43 AM
outstanding long call , Great !!

Naturus, 9:43 AM
just luck. Yoyo.

jaf, 9:44 AM
rofl

Naturus, 10:00 AM

while ES keeps going up, option traders should start to look for 4550 puts and 4535 puts to buy. the lower premium goes, the better.

Naturus, 10:53 AM

4600 will be upside target

Naturus, 11:03 AM

Sp500 index back up its 100-dEMA line
4606.50 is yesterday’s high area.
here is morning session high area.
sell all ES long side positions

4596.50-4592.50 scalping short range. as long as ES stays under it. 4577 and 4572.50 will be tgt.
4550 and 4535 puts will be focus buy this afternoon

Naturus, 11:31 AM
rest of afternoon, mainly should focus on short side on ES

ESH22 Jan. 20, 2022. 15-minute bars.

A wild day in the markets. After a reasonable rally in the morning, the S&P500 sold off about 120 points in the afternoon session.

The market turmoil was wildly profitable for Nat’s Option Traders. She made two calls , one of the way up and one on the way down, that netted several thousand dollars in clear profit for some traders.

The actual gain depended on which trades subscribers took and where they entered and exited trades. The range was from about $1150 for the most conservative members to more than $5000 for the most daring — while trading only one contract and never risking more than $650.

The first trades were called Wednesday evening for the overnight market: buy either a 4550 or a 4575 Call on the ES (e-mini futures) expiring on Friday. The 4550 Calls were trading at about $12 overnight; the 4575 Calls were trading at about $7.

At the open the market started to move up and Nat told traders holding multiple positions to start taking profits. By the time she called the trade over at 11:03, the 4550 Call was trading at $45.25 and the 4575 Call was trading at $30.

For members who held the position to the final exit, the 4550 Calls produced a net gross profit of $1662.50. The 4575 Calls produced a net gross profit of $1150. The maximum at risk in either was $600,

After Nat called the top for the day, she told members to look for entry levels on either the 4550 Put or the 4535 Put on the ES. The 4550 Put was trading at $13; the 4535 Put was trading at $9.25.

The market sold off about 120 points in the afternoon session. By the close, the 4550 Puts were trading at $104; the 4535 Puts traded at $81.25.

For members who got in when the trade was posted and stayed for the whole ride, the 4550 Put produced a net gross profit of $4550; the 4535 Put produced a net gross profit of  $3600.

The profit for the day ranged from $1150 for the smallest single trade to $6212.50 for the two largest trades combined. The maximum at risk on any of the trades was $650, the premium on the 4550 Put in the afternoon.

 


Wednesday Jan. 20, 2022

Please read the Disclaimer here.

From the trading room

Tuesday Jan. 18 after the close:

Naturus, 4:56 PM

tomorrow could be a bounce day. very oversold. 4600 calls remain active so far.

if overnight ES dip first, i am looking for 4575 and 4600 call.
premium needs to be under $6 for me to buy.

Weds. Jan. 19/22

jaf, 8:55 AM
good morning Nat and all. ~~70 ES rally pts , excellent call !!

Naturus, 9:07 AM

overnight 4600 call jumps 12.75 from 4.50
4575 calls jumped from 10.25 to 27 now.
should take some profit off

Che, 9:10 AM
Great call Nat!

ESH22 Jan. 19, 2022. 15-minute bars.

Tuesday was a disappointing start to the week. The Tuesday trade risked almost $300 to gain $150, which is not the ratio you want.

After the close, at the end of the day Nat left an overnight call for her members:

Buy the 4575 or 4600 Call on the ES e-mini futures expiring at 4p.m. the following day if the premium drops below $6.

At the time it looked like a sure loser. The market was trading around 4580 and heading down. The entry would be hit, but the option would probably expire worthless within 16 hours, with the loss of the entire premium paid.

But Nat’s option trades aren’t intended to be be held to expiration. Instead they are scalping trades that take advantage of very short fluctuations in the premium. In effect it is a way to use options as a proxy for trades on the futures contract itself.

The advantage is that the options carry much less risk.

She could afford to place an unmonitored overnight trade because the maximum risk for the options is the premium paid. The same trade using the futures contract leaves the trader exposed to unlimited losses and a possible margin call if the market dumps overnight.

In this case the market rallied first, she covered the trade at a profit, and the subsequent market decline was immaterial.

Bought 4600 ESH22 Call at ~$6.00; sold at ~$12.75.
Total at risk $300; Gross profit $637.50. Net $337.50.
Risk/reward ratio 1:1.
Total gross profit so far this week: $487.50


Tuesday Jan. 18, 2022

Please read the Disclaimer here.

From the trading room

Naturus, 11:26 AM

agg, buy today 4600 call at 5.75
this call either work if 4570 holds up, or die if ES down 4550.
i bet on later ES to close around 4600.

this call if you see profit, also take it. watch your time carefully.
that call jump from 5.75 to 7.25
see profit and take some off, trailing rest

4600 call 8.75
3pts profit so far,
i took some profit off here.
rest stop at 5.75 for that call.

ESH22 Jan. 18, 2022. 15-minute bars.

Not a very successful day. The market was down overnight and sold off further in the day session.

Nat was looking for a bounce at the open but it didn’t materialize and her first tentative call was not hit.

Almost at the end of the morning session there was a chance to scalp three points but nothing more was available.

Total  profit $150; total at risk, $287.50. Risk/reward ratio: about 2:1.

Wednesday may be better.

Questions?

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