The emphasis during this tutorial session was on put and call options, since they can be targeted using the same method we employ to predict price swings in stocks and index futures. ABCD pattern analysis turns out to be a relatively easy way to determine a fair price for an option without having to correlate its price to that of the underlying stock. Of particular interest is a gambit in NFLX, where we looked to buy put options if the stock rallied to a Hidden Pivot target. We settled on a $1.40 bid when they were still trading for $2.10 — and eventually got filled. The rationale we used to come up with a $1.40 bid takes in a wide swath of trading logic, so check it out!
