Options Trading Check List



Options Trading Check List

1. _____ Trading Decision Not Dominated By Any Outside Communication

2. _____ Only News Considered Is That Which Has A Short Term Affect On Earnings

3. _____ This Is Not A Back To Back Trade

4. _____ Not Applying A Stop Loss

5. _____ Earnings Test Conducted

Price Action

6. _____ There Is A Bullish Trend On Weekly & Daily Charts

7. _____ There Is A Bullish Candlestick Pattern On Daily Chart

8. _____ Made A Distinction Between Reversal & Retraction Pattern

9. _____ Used Intra Day Chart Only To Get A Better Short Term Price

10. _____ Trading Cycle Identified (Phase 2 For Calls & Phase 4 For Puts)

11. _____ Price Action Not Showing Too Far Too Fast

12. _____ No Gaps Or Long Ranges Within The Last 3 Months

13. _____ [Chart Has Strong Rhythm]

14. _____ Buying On The Pullback

15. _____ Chart Not Showing Resistance Before Target Price

16. _____ Chart Not Showing A Consolidation Pattern

17. _____ [Price Increment Shows High Flier]

18. _____ Exit Price Determined Before Entering Trade

MACD

19. _____ MACD Has Strong Rhythm

20. _____ MACD Not Too Choppy

21. _____ MACD Not Diving Toward 0

22. _____ MACD Fast Line Is Above Its Slow Line

23. _____ MACD Showing Ascending Triangle Pattern

24. _____ MACD Is Above 0 Or Approaching 0 From The Bottom

25. _____ [MACD Is In Momentum Phase (Crossing The 0 Line)]

RSI

26. _____ RSI Has Strong Rhythm

27. _____ [RSI Showing A Sharp Bullish Pivot]

28. _____ RSI Is Not Too Choppy

29. _____ RSI Is Above 50 Or Approaching 50 From The Bottom

30. _____ [RSI Is In Momentum Phase (Crossing The 50 Line)]

Option Price

31. _____ Option Has At Least 3 Weeks Before Expiration

32. _____ VIX Taken Into Consideration

33. _____ Option Has At Least 100 In Open Interest

34. _____ Spread Between Bid & Ask Price Is Less Than .30

35. _____ Options Not Overpriced (Check Implied Volatility)

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