OPTION SERIES with market profile for entry exit part 1

option trading use market profile

1. VIET FUTURE TRADING
OPTION SERIES
PLAN: TBA
IN FINANCIAL MARKET, THERE’S NO CERTAINTY ONLY PROBABILITY. ALWAYS HAS RISK/ REWARD SET UP

2. DISCLAIMER
I’M NOT CERTIFIED FINANCIAL ADVISORS.
1.ALL INFORMATIONS DISCUSS FOR FUN
2.ALL TICKERS MENTION ( IF ANY) DURING DISCUSSION JUST
FOR ILLUSTRATION PURPOSE, NOT BUY/ SELL
RECOMMENDATION
IN FINANCIAL MARKET, THERE’S NO CERTAINTY ONLY PROBABILITY. ALWAYS HAS RISK/ REWARD SET UP

3. MY STYLE
1.LONG TERM: MARKET UPTREND
2.NO HOLY GRAIL IN STOCK MARKET -ONLY GOOD RISK
MANAGEMENT PLAN
3.IF I HAVE A CHANCE TO BUY THE DIP: APPL, MSFT, JPM
4.ADD PROBABILITY IN YOUR ANALYSIS
5.SELLER MIND SET
IN FINANCIAL MARKET, THERE’S NO CERTAINTY ONLY PROBABILITY. ALWAYS HAS RISK/ REWARD SET UP

4. OPTION SERIES
▪OPTION BASIC + SUMMARIZE STRATEGIES
▪OPTION PRICING MODEL
▪OPTION GREEKS
▪OPTION STRATEGY
✓SPREAD
✓CORE STRATEGIES
▪CANDLESTICK WITH OPTION
▪SPY WEEKLY STRATEGY ( FOR BILL ONLY)
▪0 DTE –VIET FUTURE STYLE (CAPITAL REQUIRE)
▪RISK MANAGEMENT
▪VIX+SPX+BETA+SPY RANGE USE HISTORICAL DATA
IN FINANCIAL MARKET, THERE’S NO CERTAINTY ONLY PROBABILITY. ALWAYS HAS RISK/ REWARD SET UP

5. REFERENCE
▪McMillan, L. G. (2012). Options as a strategic investment. Prentice Hall.
▪Hull, J. (2022). Options, futures, and other derivatives. Pearson Education Limited.
▪Sherbin, A. (2015). How to price and trade options: Identify, analyze, and execute the best trade
probabilities. Wiley.
▪Ally Bank. https://www.optionsplaybook.com/
▪Natenberg, S. (2015). Option volatility and pricing advanced trading strategies and Techniques.
McGraw-Hill Education.
▪A financial network for options & futures trading. tastytrade. (n.d.). from
https://www.tastytrade.com/
IN FINANCIAL MARKET, THERE’S NO CERTAINTY ONLY PROBABILITY. ALWAYS HAS RISK/ REWARD SET UP

6. OPTION BASIC
Lies You’ve Been Told About Options
1.Hard to Understand
2.Too Risky
3.Lottery Tickets
Benefits of Options
1.Less Capital Required
2.Flexibility-speculate on up or down moves
3.Defined Risk
IN FINANCIAL MARKET, THERE’S NO CERTAINTY ONLY PROBABILITY. ALWAYS HAS RISK/ REWARD SET UP

7. OPTION BASIC
IN FINANCIAL MARKET, THERE’S NO CERTAINTY ONLY PROBABILITY. ALWAYS HAS RISK/ REWARD SET UP

8. OPTION BASIC
Call Is to Buy—think of calling UPa friend on the phone
✓when you buy a call, you can “call” the underlying asset away from the person
who sold the option to you
Put Is to Sell—think of putting something DOWN
✓when you buy a put, you can “put” the underlying asset to the person who sold
the option to you
IN FINANCIAL MARKET, THERE’S NO CERTAINTY ONLY PROBABILITY. ALWAYS HAS RISK/ REWARD SET UP

9. OPTION BASIC
IN FINANCIAL MARKET, THERE’S NO CERTAINTY ONLY PROBABILITY. ALWAYS HAS RISK/ REWARD SET UP

10. OPTION BASIC
•Options can be either American-style or European-style:
✓American-styleoptions allow the option buyer to exercise the option at any time before
the expiration date.
✓European-styleoptions do not allow the option buyer to exercise the option before the
expiration date
•Stock options are generally American-style. Futures options are
generally European-style
IN FINANCIAL MARKET, THERE’S NO CERTAINTY ONLY PROBABILITY. ALWAYS HAS RISK/ REWARD SET UP

11. OPTION BASIC
•Options can be either American-style or European-style:
✓American-styleoptions allow the option buyer to exercise the option at any time before
the expiration date.
✓European-styleoptions do not allow the option buyer to exercise the option before the
expiration date
•Stock options are generally American-style. Futures options are
generally European-style
IN FINANCIAL MARKET, THERE’S NO CERTAINTY ONLY PROBABILITY. ALWAYS HAS RISK/ REWARD SET UP

12. OPTION BASIC
The Valuation of Options:
✓Intrinsic value is that part of the
option’s value that is in-the-money
✓Time value is the remainder of the
option’s value. Out-of-the-moneywill
have no intrinsic value, and their price
will solely be based on time value.
IN FINANCIAL MARKET, THERE’S NO CERTAINTY ONLY PROBABILITY. ALWAYS HAS RISK/ REWARD SET UP

13. OPTION BASIC
IN FINANCIAL MARKET, THERE’S NO CERTAINTY ONLY PROBABILITY. ALWAYS HAS RISK/ REWARD SET UP

14. OPTION BASIC
IN FINANCIAL MARKET, THERE’S NO CERTAINTY ONLY PROBABILITY. ALWAYS HAS RISK/ REWARD SET UP

15. OPTION BASIC
IN FINANCIAL MARKET, THERE’S NO CERTAINTY ONLY PROBABILITY. ALWAYS HAS RISK/ REWARD SET UP

16. OPTION BASIC
IN FINANCIAL MARKET, THERE’S NO CERTAINTY ONLY PROBABILITY. ALWAYS HAS RISK/ REWARD SET UP

17. OPTION BASIC
IN FINANCIAL MARKET, THERE’S NO CERTAINTY ONLY PROBABILITY. ALWAYS HAS RISK/ REWARD SET UP

18. OPTION BASIC
▪Options prices are typically presented through an “Options Chain,”
which is a grid of prices and statistics.
▪DEMO in TOS explain :
✓UnderlyingAsset
✓Price
✓StrikePrice
✓ExpirationDate
✓Bid/AskSpread
✓Volume
✓OpenInterest
IN FINANCIAL MARKET, THERE’S NO CERTAINTY ONLY PROBABILITY. ALWAYS HAS RISK/ REWARD SET UP

19. OPTION BASIC
▪Open Interest: there’s no minimum or maximum number of option
contracts that can exist for any given underlying stock.
▪The Options Clearing Corporation (OCC) comes in. The OCC looks at
the volume of options traded on any given stock, and they make note
of how many options were marked “to open” versus “to close.”.
▪if more of the volume on any given option is marked “to open” than “to
close,” open interest increases
IN FINANCIAL MARKET, THERE’S NO CERTAINTY ONLY PROBABILITY. ALWAYS HAS RISK/ REWARD SET UP

20. OPTION BASIC
I DIDN’T USE THIS METHOD (https://dotnettutorials.net/lesson/option-chain-analysis/)
IN FINANCIAL MARKET, THERE’S NO CERTAINTY ONLY PROBABILITY. ALWAYS HAS RISK/ REWARD SET UP

21. OPTION BASIC
▪How to identify support and resistance level or zone?
✓STEP 1 find the highest OI column on both sides (call and put side)
✓STEP 2note the corresponding change in OI ( use Thinkscript)
▪SUPPORT (PUT SIDE) biggest open interest number + positive
change in open interest
▪RESISTANCE(CALL SIDE) biggest open interest number + positive
change in open interest
IN FINANCIAL MARKET, THERE’S NO CERTAINTY ONLY PROBABILITY. ALWAYS HAS RISK/ REWARD SET UP

22. OPTION BASIC
MARKET DIRECTION BASED ON OPTION OI
IN FINANCIAL MARKET, THERE’S NO CERTAINTY ONLY PROBABILITY. ALWAYS HAS RISK/ REWARD SET UP
CALL PRICE NET CHANGE AND OPEN INTEREST
PRICE OI RESULT
RISE IN CALL PRICE RISE IN OI BULLISH ( call long build up)
FALL IN CALL PRICE RISE IN OI BEARISH ( call writing build up)
RISE IN CALL PRICE FALL IN OI Call unwinding or short covering
FALL IN CALL PRICE FALL IN OI Long liquidation
PUT PRICE NET CHANGE AND OPEN INTEREST
PRICE OI RESULT
RISE IN PUT PRICE RISE IN OI BEARISH ( put long build up)
FALL IN PUT PRICE RISE IN OI BULLISH ( put writing build up)
RISE IN PUT PRICE FALL IN OI Put unwinding or Put long liquidation
FALL IN PUT PRICE FALL IN OI Short covering or possibility Put buying

23. OPTION BASIC-SUMMARIZE STRATEGY
The Four Basic Options Strategies
▪Long Call
▪Short (Naked) Call
▪Long Put
▪Short (Naked) Put
IN FINANCIAL MARKET, THERE’S NO CERTAINTY ONLY PROBABILITY. ALWAYS HAS RISK/ REWARD SET UP

24. OPTION BASIC-SUMMARIZE STRATEGY
Income Strategies
▪Covered Call
▪Short (Naked)
▪Bull Put Spread
▪Bear Call Spread
▪Long Iron Butterfly
▪Long Iron Condor
▪Covered Short Straddle
▪Covered Short Strangle
▪Calendar Call
▪Diagonal Call
▪Calendar Put
▪Diagonal Put
▪Covered Put
IN FINANCIAL MARKET, THERE’S NO CERTAINTY ONLY PROBABILITY. ALWAYS HAS RISK/ REWARD SET UP
Vertical Spreads
▪Bull Call Spread
▪Bear Put Spread
▪Bull Put Spread
▪Bear Call Spread
▪Bull Call Ladder
▪Bull Put Ladder
▪Bear Call Ladder
▪Bear Put Ladder

25. OPTION BASIC-SUMMARIZE STRATEGIES
Volatility Strategies
▪Straddle
▪Strangle
▪Strip
▪Strap
▪Guts
▪Short Call Butterfly
▪Short Put Butterfly
▪Short Call Condor
▪Short Put Condor
▪Short Iron Butterfly
▪Short Iron Condor
IN FINANCIAL MARKET, THERE’S NO CERTAINTY ONLY PROBABILITY. ALWAYS HAS RISK/ REWARD SET UP
Sideways Strategies
▪Short Straddle
▪Short Strangle
▪Short Guts
▪Long Call Butterfly
▪Long Put Butterfly
▪Long Call Condor
▪Long Put Condor
▪Modified Call Butterfly
▪Modified Put Butterfly
▪Long Iron Butterfly
▪Long Iron Condor

26. OPTION BASIC-SUMMARIZE STRATEGIES
Leveraged Strategies
▪Call Ratio Backspread
▪Put Ratio Backspread
▪Ratio Call Spread
▪Ratio Put Spread
IN FINANCIAL MARKET, THERE’S NO CERTAINTY ONLY PROBABILITY. ALWAYS HAS RISK/ REWARD SET UP
Synthetic Strategies
▪Collar
▪Synthetic Call
▪Synthetic Put
▪Long Call Synthetic
Straddle
▪Long Put Synthetic Straddle
▪Short Call Synthetic
Straddle
▪Short Put Synthetic
Straddle
▪Long Synthetic Future
▪Short Synthetic Future
▪Long Combo
▪Short Combo
▪Long Box

27. OPTION PRICING MODEL
IN FINANCIAL MARKET, THERE’S NO CERTAINTY ONLY PROBABILITY. ALWAYS HAS RISK/ REWARD SET UP

28. OPTION PRICING MODEL
IN FINANCIAL MARKET, THERE’S NO CERTAINTY ONLY PROBABILITY. ALWAYS HAS RISK/ REWARD SET UP

29. OPTION PRICING MODEL
IN FINANCIAL MARKET, THERE’S NO CERTAINTY ONLY PROBABILITY. ALWAYS HAS RISK/ REWARD SET UP

30. OPTION PRICING MODEL
IN FINANCIAL MARKET, THERE’S NO CERTAINTY ONLY PROBABILITY. ALWAYS HAS RISK/ REWARD SET UP