Renko Options Income Trading Archives

Renko Chart Position Trading With Options

Renko Chart Options Trading For Underlying Position Trading

Renko chart options position trading method for the SPY and QQQ. This Renko method uses either long options or synthetic underlying short-long options combinations for trades.

Renko chart options trading has large cost advantages over trading the SPY and QQQ, however there are also some downsides and risks with position trading options. These include, possibly having your options expire before a Renko trading swing reverses, and options exercise and assignment.

[Read More]

Renko Options Trade Review – Synthetic And Income Trades

Renko option trade review for options position trading. The discussion will include multiple days of QQQ position trading, focusing on 2 trade types: using weekly options for making synthetic trades and selling out of the money monthly options for income.

There are 3 Renko options trade review videos. They will further discuss the trade setups with the option expirations and strikes to trade. Also included will be profit graphs and position curvature studies for making management decisions.

[Read More]

Renko Options Short Strangle - What Is The Assignment Risk At Expiration

Renko Options Selling: Short Options At Expiration And Margin

Renko options selling trading strategies are used for SPY QQQ underlying trading. These are synthetic option positions where long options are combined with short options to emulate the underlying. While the positions have the same profit and loss profile as a SPY QQQ position trade, there are other considerations because they are options.

To begin with, selling uncovered options, especially calls, have margin and approval requirements. Additionally, traders must understand what happens to their short options at expiration and manage them accordingly. Short in the money options can be assigned, leading to unwanted long or short positions in the underlying.

[Read More]

Renko Chart Short Options: Risks Of Selling Options For Income

Renko chart short options strategies can effectively trade options for consistent income. However, selling options come with risks besides losing trades. It is necessary for these risks to be understood before shorting options.

Besides having overnight gap moves go against your trades, short option assignment risk is critical to understand. If you have an option assigned, you could be obligated to buy or sell the underlying. And then the trade could be liquidated at a loss because your account doesn’t have the necessary funds.

[Read More]

Renko Option Trading And QQQ Position Trading

Renko Options Trading: QQQ Position Trading And Option Income

Renko options trading can provide a lot of additional flexibility to your QQQ position trading. Besides replacing QQQ trades at a lower cost, you can also generate income trading options, and hedge longer term profitable QQQ positions. These are things that you cannot do through only trading the QQQ underlying.

Renko options trading will use our base Renko method like day trading. Except, the price envelope reverse will not be a trade reverse. Instead it will be used for reducing trade size, profit taking, or option income sells.

[Read More]