How To Trade Booking Holdings Inc (BKNG)
Options trading required perfect timing as well as strong discipline mind. The risk is very high with potential expiration worthless contracts, on the contrary, the possible gain is unlimited. Whenever I decided to make a trade, I have to know what is the capital risk I'm willing to lose if the trade doesn't go as planned.
The stock that I like to trade options whenever I can is Booking Holdings Inc (BKNG), I watched the stock daily price movement, bid/ask, candlestick, money flow and technical analyze. I want to share my analyze from the past week trading action to help traders.
As seen from the above chart, once the chart hit the top out the candle, and traded below 200sma with lower high and lower low on Wednesday, this is where my initial puts coming into play. When do buy-to-open (bto) put or calls for Booking (BKNG) the bid/ask spread is wide, what works for me is input your order in-between. Example, if the bid/ask range is $5.50-$6.50, I will do the bto at $6.00 and usually get filled within a min, if want faster then do market order.
From my personal experience, trading Booking Holdings Inc (BKNG) I like to wait until Wednesday to do options trade because the premium is a little cheaper compared to the beginning of the week. I was lucky last week and saw this pattern then I went on an executed the trade, thankfully it worked out well.
For my risk management, I either set at 50% stop loss or 50% gain. But due to the nature of volatility last week. The stock down almost -4% in two days, this gave options greater premium. This is just for the educational purpose, always have planned for every trade, especially with options the risk is very high.
Happy trading and investing.