CALL OPTION EXAMPLES

It is a known fact that most new traders default to buying calls options.

Given that these positions are only winning a third of the time, we aimed to provide you with call option examples that tend to win two third f the time.

Hence, by learning to recognize these, you can flip the switch on the perennial rhetoric of options buyers being on the short end of most option trades.

CALL OPTION EXAMPLES: Do Not Yield To F.O.M.O

Beginners and seasoned traders alike, we all have this impulse to buy state of mind that lead into the bullish bias.

Is it due to the long term returns of the markets ?

Everywhere you look for the last 4 years or so, all we see is such-and-such index is closing at all time high.

The likes of “Dow hits new record Amid trade war optimism” certainly have their role to play.

However, inherently, most traders seem to find comfort into the hype or hope of increase in stocks rather than decrease.

Is that the animal Nature in most of us ?

Or simply the product of irrational Exuberance ?

It is certainly not a fallacy over long term.

But we know that the timelines considered by most traders do rarely expand into years.

Very few traders get into leap positions.

I do not know about you but for me, I would Always want to make sure that when trading calls, I have the odds in y favor.

A good way to ensure this is by recognizing when the right circumstances are met.

CALL OPTION EXAMPLES: Signatures of Winning Ones

One of these circumstances is when the Smart Money or Big Sharks gives an indication of such move.

We learned that there is now a way thanks to FLow Algo to follow and mirror their trades.

Of course, this is not a guarantee of winning but by doing so, you can certainly tip the balance into your favor.

Maybe the best way to convey this method is by answering the following question.

Why Is It worth Following the Smart Money ?

When the Big Sharks show up with a position in any stock, you can expect movement sooner or later.

The only unknowns to you and me after spotting big institutions on a stock is the direction and how long it will take for that stock to move.

So, the simple Answer is: Guaranteed Upcoming Action.

Well, since options traders solely benefit from price movement or Volatility, it makes sense to be in these trades rather than on the ones we do not have any idea whether they will be moving or not.

Let’s address the easiest one of the above two unknowns.

The Timeline

The beauty of following Smart Money is that most of the time, they provide more than a strong hint on the timeline of the trade.

How so ?

The expiration date of their trades is a clear indication.

Heavy volume on weekly calls is a very strong signal.

Call options examples with heavy volume and short term expiration can be filtered in Flow Algo.

We provided this one Live on the day it was occurring.

It did not take long for that move to confirm itself.

Later on that week, that position was worth over 5 times its initial cost thus yielded over 400% gains in less than 4 days.

How about the Direction ?

This one is a bit trickier as Smart Money love to fake the real direction.

One way to not fall for this is to wait for confirmation.

No need to rush into the trade even at the risk of missing on some gains.

It is way far more important to have a high probability about the direction of the move.

Another possibility is to hedge by taking small positions on both side: call and put options for example.

Then once the direction is clearly defined, increase the number of contracts of the winning side.

Explaining QCOM Call Example on Jan 17 2020

We are going to depict one of the easiest call options examples though the video below.

What makes is the fact that the intent of Smart Money though sneaky is not hidden at all.

Example # 2

In call option example illustration, Flow Algo Equity Alert on Gilead Stock (Ticker: Gild) is the entrance criteria shown in the video below.

Example # 3

In this call option example, we share how we leveraged NVIDIA (Ticker: NVDA) Post Earnings Momentum on February 14, 2020 to make 160% Gain on call options.


Example # 4

On February 20, 2020, we scalped Nvidia and SQ Calls and Puts Options leading to our best Trading Day so far in 2020.

Here is a Summary on How we did it.


Example # 5

On March 13, 2020, AAPL Stock despite the COVID-19 Bear Market staged a major rally in the last 30 minutes of the trading session.

The result is MASSIVE gains on The Expiring CALL Options.

Check This Out.


Example # 6

Between March 23 and April 9 2020, IWM Apr20 130 calls went from a few cents to over $.1.7.

That would have been great if this occurred only once.

Well, it happened two times ! Thus proving maybe why Viewers lean more towards calls than the Put Options Examples.


Example # 7

Roku Stock tanked -8% following a see-saw Earnings Report on May 8 2020.

We leveraged our Quant Analysis Research to Day Trade Calls successfully for a quick and swift profit.


Example # 8

Between May 4 and May 8, ADBE went on a Bullish run we traded based on our own Trading System Methodology.


CONCLUSION

We hope you are finding value in these Stocks and Options Trading videos Tutorials on Call option examples.

Our goal and hope is that you are able to adjust your trading plan to benefit from these ongoing Option Trading Tips.

Subscribe to our YouTube Channel so you are the first one in line as soon as a new Option Trading video Tutorial is uploaded.

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4 thoughts on “CALL OPTION EXAMPLES”

  1. As a beginner trader, I have to say that I find this really helpful. I have been on the lookout for the most comprehensive guide to profitably trade calls. There seems to be genuine gains to be made by simply following the big players. I truly want to become proficient at this. I’m aware it’ll take time and I’m willing to put in the work.

    Regards

    Reply
    • Greetings Rhain,

      Glad to see that you found the content of this article very helpful.

      I think your motivation and determination will be a great catalyst to your success as a trader.

      Please do let us know what type of topic you wish to see us tackle on next.

      We appreciate your time and look forward to helping you in your future trading endeavors.

      Reply
  2. Hi Telex,
    How are you doing today? and many thanks for the good work.
    I do have a question on this video Explaining QCOM Call Example on Jan 17 2020

    When you look at the Volume and Open Interest a day to expiration, I could have easily assumed that the Smart money was closing his position.

    My question how did you know that the trade was worth taking, meaning the trade was speculative in nature and not hedging?

    Thanks for your anticipated response

    Reply
    • Hello Sir Charles,

      I am doing great. Thank you for your question.

      Smart money never makes anything obvious so sneaking in a trade when most assume something else is exactly what they are counting on.

      If someone is closing a position, they will wait until the last few hour on Expiration Day to pay as little as possible since the price of the contract does down as time passes by.

      These late in the week types of trades are frequent enough. So I have seen quite a few before hence the probability was high that it was the same kind.

      Hope this helps.

      Reply

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