SPY Options Trading Archives

Renko Chart Options Income Selling And Protection Trades

Renko chart options income strategies for selling options with 1 to 2 months to expirations. These are counter directional trades at price and momentum extremes as shown by the Renko slow momentum indicator.

Our Renko position trading is a combination method that also includes directional trades. These trades become protection for the option sells, as you would typically be long or short before the option sell strike is reached.

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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.

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Renko Option Trading Position Strategies

Renko Options Strategies: SPY Position Trading With Options

Renko options strategies for position trading the SPY. The strategies include put and call option buys to replace trading the SPY and also options selling for income. The same day trading setups and strategies will be used for options trading but in a different way. The price envelope reverse and midline reject will still be used for option buys and directional trading, but the price extreme reverse may be used for option sells instead of trade reverses.

The Renko options trading chart brick setting size will be larger than the day trading chart to accommodate position trading. We are looking for a chart similar to a 60-minute chart for fewer Renko trade setups and for longer term position holding.

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