Does Guy choose a certain "strike price" with the deep in the money options for flag trades?
We like at least 70% intrinsic value (or Delta) so that the option is mirroring the stock price without the manipulation of implied volatility (which only affects the time value portion of the option).
You can filter for this within OptionEasy tradefinders, along with our preferred values for Open Interest, Bid/Ask Ratio, and Leverage Multiple.
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If the entry price of the flag or consolidation is hit, but then the market just starts moving sideways not hitting either entry or stop loss. Is there a point where I can say this is not the typical flag trader trade and just exit?
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What is a Flag Pattern?
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What ratio of successful trades to unsuccessful trades can I reasonably expect?
The more patient, disciplined and fussy you are about the trades you choose, the higher your success rate will be. Some people can start with six or more winners in a row, for others it will take longer to master. This does not simply mean setting ...