General option trading guidelines - Brown Surfing

General option trading guidelines

Posted on: December 14th, 2022
By: Efrain Lemus

If you feel bullish on a stock but it has a high RSI of above 70, would you still enter a bear call for 30-45 days out?

If you feel overall bullish on a stock don’t short it. If you feel bearish don’t long it.

If a stock has an RSI below 30 one day and the next day it jumps to 40ish, would you still enter a bull put on this stock?

No, if you missed the entry wait for the next right time.

For the 0DTE, I looked at the 10-minute RSI and it was really low, but then the stock went lower throughout the day and when I looked at the daily RSI, it was high, about 62. Should both the daily and the 10,15 minute RSI be considered when doing this play?

For 0DTE, look at the 10-min RSI only

If the RSI is above 30 and below 70, do you enter a spread? Once it’s been about 1 hour into the day of trading.

No, only enter it if it’s the right time. You don’t always have to enter a position.

For earnings plays, do you do weeklies or do you still open a position 30-45 days out?

Weeklies

Out of these reports, which is the important one?

https://www.bea.gov/news/schedule

(Gross Domestic Product GDP)

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