Aug 11, 2014 02:56:08 PM EST , we received a Ichimoku Nasdaq 7 time frame buy email alert on VRSN, Verisign Inc. Here is the email alert:
In analyzing all the US Indexes, the Nasdaq was the strongest, You can watch the Ichimoku Global Market Video to see the analysis of the US index. (www.ichimokutrade.com/c/videos/categories/bi-weekly-global-stocks-videos/). Since price was holding the weekly minor support on the Nasdaq and looked like it would have a high probability of retesting the pivot high, we wanted to look for a “Swing trade” on a stock in the Nasdaq. “Swing Trading” for us is a trading you hold over night and it can last up to 1-2 weeks. Since we want to keep risk low and it was a “swing trade”, we are going to trade the option “greeks”.
This this theory in mind, we found this 7 time frame nasdaq buy email alert. Therefore, we setup a trade on the 120m time frame using options. The entry would be 54.83, initial stop of 54.68, and a target of 56.30. This would give us a min. risk of 15 cents and a reward of 1.46. By trading the “Delta Greeks”, it would give us over a 3:1 reward/risk ratio since we are going to use an At-the-Money option one month out. Here is the chart:
During the time of the entry alert, we examined the Option “Greeks” and entered the trade. Once the target price alert was reached, we exited the options.
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