Trading weekly or monthly stock options is a great way to supplement your intraday trading. Here’s three examples from this week that I did on Colgate-Palmolive (CL), Canadian Solar (CSIQ) and Coca-Cola (KO).
Trading Weekly Stock Options
Here are the three trades I did this week, while waiting on intraday setups. By supplementing with the stock options, I do not feel the pressure to constantly be in a particular market. Instead, I focus on the setups and take what I consider to be a high probability trade.
First, Coca-Cola (KO), indicated a bearish divergence on the daily chart. Anticipation was that price would go down. I bought an option put for 53.50. Within two days I took profits.
Second, I saw that Colgate-Palmolive (CL), was oversold with a pivot low formation. I bought an option call at 74 and then sold it within 48 hours for profit.
Third, I noticed that Canadian Solar (CSIQ) was at the congestion dot with bullish divergence so I bought an option call at 21.50. This morning I took profits.
Starting next week, we will be reviewing how to incorporate trading weekly stock options with your trading plan in the coaching sessions.