This thread will mainly be for people who are already familiar with options and have traded / or trade them frequently. Options are VERY risky and you can lose everything if you are not familiar with them.
That being said, let's get into it
I personally will only trade options on tickers that provide high liquidity, big names such as $AAPL $FB $TSLA $AMD $NVDA $SPY $QQQ
This will guarantee that you get tight spread contracts with good volume that follow a trend and move nicely
The relative strength index (RSI) is a momentum indicator used in technical analysis that measures the magnitude of recent price changes to evaluate overbought or oversold conditions in the price of a stock.
How is it used?
Traditional interpretation and usage of the RSI are that values of 70 or above indicate that a security is becoming overbought or overvalued and may reverse or pullback. An RSI reading of 30 or below indicates an oversold or undervalued condition, indicating a corrective bounce.
In order to read candlesticks, we need to first understand how they are formed. Candlesticks are created by up and down movements in the price. While these price movements sometimes appear random, at other times they form patterns that traders use for analysis or trading purposes
Each candlestick includes data from a certain time period (5min, 15min, 1hour etc). Candlestick patterns found on higher timeframes, will be more prominent than a pattern found on a smaller timeframe