Good afternoon, everybody. Welcome to our Long Options webcast in Schwab Coaching. I' m Connie Hill. I' m happy that you' re joining me here today, and I am always happy to be here Thursdays in the afternoon at, what time is it, 3 Eastern, that we get to spend some time together talking about a strategy that I think is really helpful as people are getting used to learning option trading strategies, and that is long options, buying calls, buying puts. Now, one of the things we try to do when we buy a long option is have a target, have something in mind where we' re thinking the stock could go to or we would like it to go to. And today we' re going to be using Fibonacci retracements. It' s a Fibonacci tool.
It' s part of technical analysis. We' ll talk about it in more detail. Some of you might be familiar with it, and that' s great. Others of you might not. In fact, if you want to respond to me, let me know in the chat. If you know how to use Fibonacci retracements, go ahead and let us know, or if it' s going to be something new to you. Now, I am joined in the chat by Cameron May. He' s going to help field your questions. A lot of the questions I have to pick up, but there could be some things that he can help us out with, and so I' m glad Cameron's there. I hope you' re following us on X.
I' m Connie Hill, CS, He' s Cameron May, CS, and we' ll post educational content throughout the day as we see things that interest us that we think you might find interesting. Interesting as well. We' ll go ahead and post about it. Let' s go through our disclosures and lay out our agenda for today. Options carry a high level of risk and are not suitable for all investors. What we talked about today is for education and informational purposes. Don' t consider it a recommendation. We' ll be using the downloaded software, Thinkorswim. That' s what you download to your computer. It' The most robust version has so many fantastic tools for option traders, which is appropriate to use. And an options class here, past performance of any security or strategy does not guarantee future results or success.
Want to pipe up to you a couple of workshops coming up in the next two weeks, a couple of events, I should say, next weekend, Friday and Saturday, 18th and 19th in Denver. If you can get yourself to that workshop, it' ll be a technical analysis on Friday, option strategies on Saturday. It' s fabulous to be able to go and partake. It' s free. It' s free. We treat you well. We even feed you. I' m kind of a little jealous of the way that we treat you because we treat you so good. I guess I shouldn' t be jealous. I think it' s fantastic. Then, in New York on the 26th, that' s going to be a Saturday. We' ll have a market drive event. That' ll be a one-day occurrence.
If you can get yourself there, you will be happy that we nudged you over there, all right, to be able to participate in that again. It' s free as well. Now, as far as our agenda goes today, we always talk about long option concepts. Right? Sometimes it' s the first strategy traders start to learn as they' re trying to learn options, right? What' s a basic call if you buy it, and a put if you buy it? So we' ll talk about looking at different trades and also talking about aspects of price, time, and volatility because each of those impact the price of an option. Of course, we' re going to do a lot of examples. And just kind of some concepts that you need to know with long options is that they' re directional in nature.
That means we need the stock to move the direction we think it' s going to move or it' s not going to be a profitable for us. Kind of like a stock - if we buy a stock, we obviously want it to go up in price and improve, you know, gradually over time. And it' s the same thing with an option that we buy it, that we Re looking for that directional movement. Now, playing to the bearish side is something that people might not be as when they' re newer as comfortable with. And we haven' t seen a lot of market conditions for it. Okay, so you might not feel as confident with your longs. Puts is maybe the long calls at this time, but that' s okay as conditions change.
You' ll be happy to know that you can trade long puts as well when you buy an option call or put there to what we call theta negative. What does that mean? Well, theta is the Greek that that kind of defines the relationship of what happens to the price of the option in relationship to time and as time passes on. And so really every single day. The time passes the price of the option just for that given date will decrease at least some variable, some little bit, whether it' s a penny a day or six pennies a day or something totally different. But just in knowing that, hey, it' s going to decrease in value, it' s big a positive, which means if the if the volatility goes up on this on the stock and therefore it gets translated the option, then that will increase the price of the option.
It' ll increase. It many times if there' Bad news that comes out, right? That maybe that implied volatility ramps up a little bit and that premium swells, and as an owner of that option, we bought it. Man, we like seeing that, right? So recognizing the impact that Vega and theta can have on your options is going to be really important. And we can always lose whatever we put into the into the trade, right? We spend 500 bucks for the contract. We could lose all $500. We don' t want to. We want to take actions to prevent that. But you need to know that' s a risk that you want to make sure you' re aware of. Let' s go out to our thinker swim. Relative help.
I know you want us to come to Philadelphia and I would love to be there with you. We don' I have that on the schedule yet. I' m hoping we get there. Man, I' m hoping we get to all of you. I know we' ve got Tennessee. We' ve got Florida. We' ve got Houston coming up. I think we' ve got another. One before the end of the year, not I' m probably missing one of the cities that we' re going to come to, so please take take us up on it. Alright, the calendar all thank you, Cameron chatted in the calendar of our our webcam or our live events where we' re coming to so you you can take a look at that now.
Usually we' ll take a look at the S and P and see what' s going on because overall it' s still been quite bullish now. I know the market was up a little bit. Higher today than where it is right now, and we can see on the S&P, yeah, kind of gapped up and ran for a bit. Guess what? We hit another all right, 5,878. It looks like there before pulling back here off its highs from the day, but still looking like a fairly bullish day, unless we majorly sell off into the close. So many times, option traders will want to look what and determine what' s my bias on the market. What do I think of this market? More bullish or bearish? Or neutral?
So we' ll look at the S& P 500 for that. Let' s look at the NASDAQ for that as well. NASDAQ 100 we see and I should tell you the tan is my or the blues. My 10 day exponential moving average. The red is my 30 day simple moving average. So this is our intermediate trend clearly above it. The shorter church trend that 10 day exponential the the NASDAQ has been staying above it. More more. Recently kind of a little bit more consistently than it did say back here in August. Maybe into September right fell below it a little bit for three days there, but kind of hugging it. It' s responding to it. It seems to respond to it. And again, it' s up on the day down off of its highs.
It isn' t at a point of making a new high, but it' s not that far off of it is that so it' It will be interesting to see and it looks like, you know, tiny bit higher high few days ago, right? Not quite as high, but it did form a new high and so yeah, definitely more of a bullish trend there. And then if we look at the Russell 2000, it' s above its 10 exponential moving average. It is man. It' s closing in on its all-time high there of 2300 on that index. Now the Russell is the small capitalization stocks and it' s nice when all three of those index indexes – even with some doubt if they' re kind of all in sync with each other, right?
Meaning all going the same direction, and the Dow Jones. Let' s just see how far it is off its highs. Thanks actually keeping its green candle. It gapped up another all-time high today. So, we should look at what the indexes are doing. It' s like well, maybe you ought to look for call options to buy right as opposed to put options and most of the time people will like to track along with what the market is doing. It doesn' t mean that you can' t buy a long put; there could be an opportunity that sits right, you know, that you find gets thrown at you and you decide to take advantage of it. It' s just that generally speaking, it' s a little bit easier on traders if they can go along with the direction of the market.
All right. Now you guys gave me some great information in the survey last week, and I appreciate you filling that out for us. And I' m going to take something that one of you said, and we' re going to use it in two different examples here today in our example traits. One thing that I received in the feedback as well and you guys can chime in on this, have a look at your comments is that there are a few of you that were interested in learning the scan tab better and how we could use the scan tab in our class. So my plan is to weave that into our class next week. All right, and this week I' m going to weave into it somebody else' s request from that survey last week.
So again, we like to incorporate when I say give me information of what you want to cover. I will cover it. We' re going to do that here today. All right. So to start us off we are going to look at and I was going to say individual stocks if we' re seeing that the markets up more likely than not several of the individual stocks are up. Okay, we' re going to work with the WWW. I think this used to be Worldwide Wrestling, but now it' s not it' s Wolverine Worldwide. And these guys I went I' m not that familiar with their company. So I went to the analyze tab here in fundamentals to see how they market and distribute footwear, apparel, and accessories. Okay, so they' re kind of part of the retail world.
So they' re a consumer discretionary stock as we look what' s happening with them. They too get a high now. It' s not a high price stock. Sometimes people like to use higher price stocks for their option trades, but there are going to be some people that appreciate having kind of some lower price stocks to work with, especially if they' re working with a smaller account and want that option price to be a little bit smaller. So I try to find some of those type of examples if they fit in with what we' re talking about. Yeah, Mike says I am not familiar with that one. Well now you are okay. Now I forgot to erase this. I meant to erase it before we got here.
One way to determine a target that we haven' t done for a while is using Fibonacci' s and the Fibonacci drawing tool. Now Fibonacci drawing tool to get it. I' ve got it up here on my toolbar, but you could easily just go to the roll bar on your mouse, right scroll bar click on it and then come over here to the one that' s the percent sign. Okay, that is our Fibonacci retracement tool. And there' s a lot of information. Information about Fibonacci' s. It' s probably one of the most useful things to come out of the Elliott wave theory. Have you ever hurried heard of that, but it' s this idea that there are patterns that we can identify in nature on our bodies on our thumbprint in sunflowers.
Okay, there are these ratios that exist all around us and we can see them in chart stock charts as well. And so we' re going to be using that ratio here today. Now, you don' t need to go deep into how Leonardo Fibonacci came up with it and the details of it. But what you can know to just using it is that it can help us identify some targets and some stops. And it' s interesting how often stocks when you when you put a Fibonacci on them and you kind of trace and move out. It s interesting how often they go to that spot doesn' t mean they have to, but it' s interesting. To see those patterns develop. Okay. Yeah, Chris is yet. Oh, it' s WWE. That' s the world.
That' s the wrestling one. Okay, we' re doing the Wolverine here today. Okay, for a Fibonacci. Those of you that aren' t familiar with this tool, essentially what we do is we take the top of the move and retrace back to the bottom of a move. Okay, how do we know that it' s the top and the bottom of a move? Well, the top and the bottom of the move. We basically say hey, we' ve got to have a peak point that goes down and then something maybe the bounces up. So let' Take this area right through here. All right, the day the stock went the highest over this period of time here would have been the peak day. How do we know because the next day it went down?
Okay, it went lower than that. So that was the peak at that point of that move. Now to create the Fibonacci. We' re going to go to maybe a place where it bottomed out. How do we know that it bottomed out? Well, because the price bounced up so we could do we could do the move either before the peak. We could come down here to say this red candle is the low and use that move or we could say, hey, if we' Re over here in time, we want to see maybe where that more recent retracement was. Now we' re going to use where the stock has been recently for this. Although you if you' re using it, you can use it for bigger moves.
Okay, we' re going to use, use it for smaller moves here today. So where' s our peak man? It' s nice. It identified it for us. It' s right there at 1851. So we' re going to use that as our peak and then do we actually have a bottom in this pullback? Well, if we didn' t have today on the chart yet, I would say no, we don' t we haven' t seen it go up yet. So we actually need this day today to well, we' re getting pretty close to the close of its likely to close. Similar to what it looks like right now. And so one of these days here is going to be the low day. And as I was looking out and you can see here, it looks like yesterday was the low date.
So we' re going to take that as the low point in the move. We' re going to take this as the high point in the move. Now, if your expectation for the stock is bullish, you want to draw this Fibonacci starting at the top taking it down to the bottom point. Okay, if it' s something that is on the more bearish side of things, we do just the opposite. We' re going to project down. So we' ll start at the top and go down to the low point and let the projection go to the downside. So let' So, show you how this is going to look here for those of you that aren' t familiar. And I want to look see who is actually familiar with Fibs. Will says Fibs are cool.
All right. I don' t know if any of you others have cameras just posted something in the chat there, which is perfect. Because he does getting started with technical analysis, and he' s done several tutorials on on how the Fibonacci was developed, what it means and how to use it. So he' s just posted one of his his classes in the chat area there that you' re welcome right to select on. When I do my completion work here, when I' m finishing up, I' ll go ahead and post that in the description of the class. As well. Okay, I' ll copy that link over there. So those of you that are listening to this on the recording are just going to come back to it.
That' s how you' ll be able to find it as well. We' re going to Cameron' s just going to his class. Or right now, if you' re here, go ahead and you can click on the link now because we' re doing a move to stock is bullish. We' re thinking it' s up one. We' re going to do a measurement. But do we have an entry that many people might like here? And I would say the entry we' re looking at here is we' re at. Actually looking like we' re getting a decent bounce. Okay, maybe a bounce off this 16- ish area that seems to be acting as support. So I' m going to click on my Fibonacci tool there.
And I have to click on it twice and I' m going to start here where my eye looks like it' s seeing the top might not be perfect. Okay, and I' m going to go to the the low point of the low candle in the move that we identify as the low point in the pullback here. Okay, now it might not be perfect. All right, the high here is 18. 51. I got it at 18. 49. That' s probably close enough. The low here is 15. 95. Oh my goodness. I actually nailed that one. I hardly ever do that. It' s usually off a little bit. Okay, so we' ve got our Fibonacci levels and what's interesting. Sometimes we see stocks pull back to those Fibonacci levels.
And then we also will project. So we' ll say, okay, stocks down here at support. Maybe first target people are looking for is 1851 or back to that area. And then after that, maybe looking to get up here to this 161. 8 area. That would be the next Fibonacci target that we would look for the stock to make. Now, it doesn' t mean it' s just going to all move there all at once or all in three or four days, right? It could take some time for it to really make that move. But, we are going to be using that new higher target that goes beyond this initial peak. Now, honestly, if you only wanted to trade the move from here up to say the 18-51 area, the previous peak, that' s certainly fine.
There' s no problem with doing that. Our purpose today is to look for a little bit further out target and then by plenty of time to give an opportunity to maybe run up, pull back a little bit and run up, try to hit that target. That' s the Fibonacci is offering here. Okay. Chris says maybe at today' s move seems to be a reaction to an analyst upgrade. Could be, you know, news makes stocks move. We don' t have a ton of volume, which is fine. We don' t need to see volume when we Re looking at a support bounce because the stock is already in an uptrend. Now, let' s go knowing that our target is going to be 20 here. What about a stop loss?
And I' m just going to go a little bit below 20 or below the 2007. I' ll just say put it at 20 and you could go a little lower if you wanted to as well to give it some leeway. What about a stop? Well, a stop if we' re thinking we' ve got a support bounce here. We' re not looking for the retracement of a move. We' re expecting the stock to continue to go up. Yeah, maybe it goes down a little bit in the morning and runs back up, right? And so we' re going to take our lowest point and go some bit below it. So, we re going to take our lowest point here, which turned out was yesterday at $15.
95, and we' re going to put our stop loss at $15. 85. Okay, that is what we' re going to do. And I' ll just put off to the side here, www. So, you know, that' s the one we' re referring to here. Okay, many times people will have the the target be based on the price of the stock and we did that quite a bit. That' s what we' re doing here today. Other times, they want it to be based on the price of the option. Either way is just fine. And I' m going to show you examples of each of those, you know, from week to week. We' ll probably trade off kind of the methodology that we want to use. Hey, you can do numeric.
You can use your technical analysis. Now, this stock does not have a ton of trading activity. So, we' re going to see notice here. First thing is it only has monthly options. Time- wise. I told you, we want to give it time to do that. We want to go up to that higher projected Fibonacci move. November really doesn' t give us enough time to do that. December will do the trick, though. That should give us enough time in there to make a move and have that buffer of about 30 extra days that we want to get typically on a long option. That' What some traders like is to buy that much extra time to avoid that fate of decay, because the closer it gets to options expiration day, the quicker or the more severe that deterioration kicks in.
Okay. All right, what do we have here? Stocks almost at 17. So our $17. 50 would be our at-the- money option. We could do that or if somebody wanted to be a little bit more conservative, they could go with the one that has a little bit of intrinsic value. It' s not that expensive of an option either. Okay. At this would cost us $280. This one costs $ 135. I' d be a little bit more conservative, love seeing the open interest here and I' m going to point this out to you all the time because it: You want to make sure there So, other contracts out there, okay you do not want to be the lone ranger, you know take taking a contract with other people haven' t yet, okay.
We need people to exchange contracts with, so either one of those could be appropriate, but one thing I' m thinking we were going to use here today is we' re going to use the 1750, we' re going to go with the at-the-money, okay it doesn' t have intrinsic value on it yet, so this is 100 percent time value. At-the- money options many times are about a 50 delta and this one' s a point four nine delta, so it About again if somebody wanted to be more conservative they could maybe go a little bit in the money they could do a 15 or a 12 50 for our purposes we' re just going to go ahead and queue this up we' ll let us risk for this trade let' s risk 750 dollars so if some bad news came out in this call option here you' re going to be paying a little bit more for this trade and you' re going to be paying went down to zero,
how many contracts could we do here? We could do, I' m gonna guess four, and we' ll see if that' s too many or not. I' m gonna hit confirm and send here real quick. That gives us 540, so we actually could do another contract. Let' s do five. And we' re gonna put in that target area, the target stop, the target get us out if it' s not gonna work out for us. And we' Re just gonna do a first trigger sequential, and then we' re gonna put that condition on the next page. So we' ll do create opposite order. We' re gonna click on this year, and then we' re gonna put the conditions in here.
And really what we' re gonna do is it' s not gonna be a limit order, it' s gonna be a market order when the condition, if one of these conditions gets met. We' re hoping that it does, okay? So what I say our target would be, our target will be if the price of the stock gets up to $20 or more. Let' s put in our $20, right? Price of the stock, not the option. Or if the price of the stock gets down to our low area, where it Not doing us any good, if it gets to 15 . 85, all right. You' re down here. Make sure you' ve got your plus, your greater than or equal to going the right way.
So the mark is greater than or equal to 20, trigger that market order. Or if it gets to 15. 85 or less, trigger that market order. Now, the other thing some people might wanna do is really pay attention to this over the week, okay? And if you want, raise that stock loss price. If we start making great progress towards 20, it doesn' t mean the stock' s absolutely gonna go there. We' d love for it to go there, right? But what we would do is we kind of come in, see what the low is, move our stop loss up a little bit, maybe prior to that low, if it' s significant enough to maybe move it, all right? Let' s go ahead. We' re gonna put this in our long options bucket and keep track of it there.
All right. Let' s see if there' s anything. It looks like we' re doing good here. Very good. Let' s go to the next one. The next one, we' re gonna incorporate what one of you wanted to see, all right? Again, we' re gonna come look at a chart and we' re gonna look at something that also could potentially have an entry signal here. Okay? What kind of an entry signal? Well, this is actually an all-time high. Hey, I went back historically to see if it ever has been higher and it hasn' t, okay? So this is all-time highs. And then again, we' re gonna use that Fibonacci. When a stock' s at an all-time high, we' re like, well, how do you decide where it might go to?
Right? How do you do that if it' s never been there before, okay? There' s different things we can do. We can go come out here and look at average moves. Oh, maybe the average moves here is five points and say, okay, we' ll think that maybe this move will be about five points as well, right? There' s some things that we can do. We can also look at support and resistance areas and say, okay. In a ten dollar difference in price, between support and resistance, maybe the next area that it goes up to is maybe going to be in that ten dollar area, but again we' re going to use our Fibonacci retracement tool now.
We don' t know that today is a top so we are not going to use this as our top okay, but what we are going to do, we' re going to look at our previous high and go to our previous high previous low, so we' re going to use this move here that was a top how do we know it was a top because it had a bearish candle after it, price went down, okay where did it go the lowest well it' s looking right around this 96-ish area and I' ve got several shadows down there low this candle on the 30th of september turns out it was a few pennies lower than the others so we' re going to use that as our low we' re going to use this as our high
so i' m going to kind of zoom in and see if we can get fairly close to that so again i' m just going to try to get as close as i can to the high price of that high candle come down here to this green candle that' s the 95 . 95 let' s try to get it as close as i can there that' s pretty close 95 . 99 only a couple four pennies off that' s not too bad and then this peak price here uh came in at 113 . 43 10 cents off of that now if you' re somebody that' Like a real uh utilizing the candlestick states uh detailed person and you want it to be perfect you could go in and change this, okay?
We could come in here and let' s see what was that really once uh $113. 43 we could go add ten cents to this, okay? We could right mouse click out of the properties come up to here and make it $113. 43, okay? So you can do that if you if you' re one of those people if that you think of me a little bit maybe it might make a difference. And when you' re doing bigger moves, it might make a difference, okay? Where' s the Fibonacci projecting a potential target for this stock? About 124, it' s some change, okay? It' s right now at 116. So 116 up to 124, we Ve got what, maybe about an $8 move. It' s $8 seems significant enough to maybe trade a long option on it.
Yeah, if it were maybe $3, you might not feel quite so inclined. You know, $3 move and the stock' s already at 114. But eight points is pretty decent, isn' t it? So we are gonna go ahead with this. And in terms of our selection of strike prices, we' re gonna incorporate that question. So the first thing on the target, let' s put our target at 124. I' m gonna go a little bit shorter, $124. 10. And then our stop, well, our stop is not, we' re gonna go to our low on our Fibonacci. We' re not gonna let it retrace there. But what we might look at is what was yesterday' Slow. If this were a more sizable candle, a more sizable body, we might say today' s low.
But today' s low is kind of getting pretty close to where the price of the stock is right now. So we wanna be able to have a little leeway. So somebody might use this low. Some people might even use this low on that red candle, okay? It' s not imperative that you only use, say, yesterday' s candle per se. You know, kind of take it in and see what leeway you feel comfortable with, what risk you feel comfortable with, okay? In this case, let' s go ahead. What did I decide here? I said we were gonna put our, oh, I didn' To say where I was gonna put my stop. Okay, we' re gonna put our stop here for today. We' re gonna put it under yesterday' s low.
The stock really hops down here and starts to go down. It' s not following through, right? It' s not following through with this little, basically, today' s it' s call hold. It' s also kind of a mini breakout because it' s going above this previous high here. There' s not a lot of resistance there to really say, oh, big breakout, but it is making a new high, okay? And technically, it qualifies as the close above the high of the low day, which is right here, okay? For the purpose of our trade, we' re gonna take yesterday' s low 109.24. We' re gonna go a little bit below that. Let' s go 109 . 04, okay? 109 . 04. That' s what we' re gonna use for the stop here.
All right. Chris is, you know, it' s looking like it could be a possibly little shooting star. It could be. It has that look of a kind of a small-bodied candle that we call a doji. And at the top, if it' s gapped up, in front of a bullish candle, that could be the beginning of either a shooting star, shadow isn' t super high on this. If we had a real super high shadow, then we' d probably go, oh, yeah, it looks like a shooting star, which could be a potential reversal. So that' s something to be aware of. However, it makes more sense if it' s out resistance. And actually, it' s not a resistance because it just may kind of just, it' s going through the previous peak and just making a new high, okay?
So I' m not, I' m not so concerned about that being a reversal candle for those reasons. But Chris, I think you' re right to take that into consideration. Now, Soma says, you know, BRT is about 7% above the 10% move or the 10 -day exponential moving average. Okay. If that kind of fits into your rules that you don' t like to get it that far away from it, you know, you might say, well, this doesn' t meet my rules for an entry. The rules we' Re going off is essentially just a cahold. And it' s nice to see where it is in relationship to that. Okay, but we' re going to use this as our target and our stock.
Now, the request that came in from one of you said, you know, could we maybe look at when we' ve got, when we' re having a decently high target, which I' m going to say 124 is a decently high target from where the stock is now, it' s about 10 points, right? Okay. Could we do maybe an at-the- money option that' s near that target price and maybe a little bit more conservative, maybe a slightly in-the- money option and compare them and see if you would manage them differently. And let' So, talk through what you might do differently. Okay. Would you treat them separately? Now, from our start point here, I' m going to say, no, we' re going to look for the same target.
We' re going to look for the same stock. We' re going to treat them equally. However, that could change as the trade develops, you know, our out of the money option. If it' s just start dwindling, dwindling, dwindling, we might go, oh man, that was just too far out of the money. I don' t, might not make that move. So let' s start here with the 125. This is our out of the money option. That' s the closest to the target price. We could either do 120 or 125. Okay. 120 is about our 49 Delta, which is kind of, near and at the money Delta, right? Usually 50 something. And we' re, but we' re going to go with this 125. That' s a little bit further out of the money.
I love the open interest we' re seeing here. So there' s lots of, lots there. So let' s go with 125 here. And I' m going to just make this a blast all, because we' re going to put two in there together to go. And actually we' re not. We' re, we want to do their targets separate just in case. Yeah. Let' s do their targets and separate. All right. So let' s do, instead of a blast all we' ll just say first trigger sequential 780. We would, you know, typically our risk is around 750 and some people wouldn' t want to do it because it' s just a class trade example. And we' re illustrating a concept of comparison. I' m going to go ahead and do it.
I' m not so worried about that. Okay. We' re just going to do one contract. So let' s create an opposite order here. And this one' s going to act as our stop loss. Now I had done this on the previous page or the next page, the conditions page to change it to a market GTC. But in this case, we' re going to do it on this screen and we' re just going to do the same thing. We' re going to say, all right, if the target, let' So go to the target first, if it' s great, gets greater than or equal to 124, 10, we' re going to be happy. Campers get us out. And here we' re going to say, if it gets less than or equal to one Oh nine Oh four.
Okay. We' re going to use these exact same numbers on the, in the money option. Okay. We' re going to see how different they act with each other. And again, initially we' re going to, we' re going to manage them the same way initially by having those targets in there. But as the trade develops, that might change, right? Going to put this in our, our long options buckets and send it off. And we' re going to do the same thing here. We re going to do the one 10 strike that one' s the, in the money, little bit more conservative, quite a bit of more intrinsic value. This is all time value, right? So we' re going to go ahead with the one 10 first trigger, sequential, create an opposite order.
We' re going to make it again, a market and a GTC and go ahead and put on the conditions here. The exact same conditions, just different strike price. Okay. So greater than or equal to one 24, 10 or less than or equal to one Oh nine Oh four. Now, same thing here as this stock, if it starts advancing up, we don' t know what it' s going to do. That' s what we would like it to do. But if it starts advancing up, then we' re going to come out here each day and just kind of move it up a little bit. Depending on where the new, maybe the new low is from price action that took place today or, you know, one of those days coming up. Okay.
We' re going to keep our eye on it. If it only moves a short distance, you know, maybe it only doesn' t have big movement one day. You might not feel inclined to really move it. Okay. But that' s where we' re going to start. We' re going to hit save and we' re going to send this little guy to our long options bucket as well. And this message just letting us know, Hey, sometimes they might have to substitute a limit order in there instead of the market order. We' re going to send this off. All right. We' re going to do one more. Okay. I think we have time for it. Looking at the chat here. Okay. Just looking to see if there are any questions.
Looks like more just conversation with you guys, teaching each other, sharing your experiences. What? So, some of the things you like to do, which is perfect. All right. Next chart. And then we' re going to manage some existing trades tier is going to be CRDO. Now, CRDO Credo Technology just hit a new high, you know, moving pretty long. Well, this 10 exponential moving average ran up, pulled back, bouncing up today. Okay. So this is looking like, um, earlier when I was looking at this chart, looking at it, it looked like it was definitely going to be a close above the high of the low day. Let' s see right now. Uh, the high here is 3750. So we want the stock to close 3751 or higher. Okay. We' ve got it right now.
We' ll see if it holds into the close might not really matter because we' re going to go ahead and put in the trade. So what are we going to do? We' re going to do our Fibonacci retracement. We' re going to grab it, make it our active icon, or just bring it up and then move. Wise. We' re going to just do this little move. Okay. We' re going to start at the high. See if I can get really close to 4037. It' s about as close as my mouse is going to go today. The low is the red candle right here. Um, let' s see that low was 3563 or a few pennies off. Not too bad. Uh, 4034. We' re close again.
If you want to go in and change those, you, you could for our purposes. I don' t think it' s going to make a significant enough difference. Might move our target a couple of pennies, probably not a lot more than that. So again, then after this stock, maybe reaches its first peak point here, 4037 and some could use that only for their target. But this next area out that the Fibonacci is saying, ' Hey, this is likely a next new target to shoot for.' Doesn' t mean it' s going to go there. Um, never means it' s going to go. There it' s just hate in the ratios that we' re measuring out here. This is where that one 61. 8 ratio places the price of the stock. Okay.
So let' s go a little bit off of the, let' s take some sense off of this. Okay. So we' re going to put our target at 43, let' s go $43. 20. Okay. And then we' re going to put our stop at, um, let' s for today go yesterday' s low, yesterday' s low was $35. 82. So let' s just go to 35, uh, $35. 72. All right, let' s go ahead. What strike prices might we use in this case? We could use December, but look at this. There is nothing in the open interest. Now, it, it will probably fill in the closer we get to options expiration. We look at the November options, some decent activity out here. However, because there' s nothing there yet, we' re not going to do December.
Hey, we are not going to be the, the loan contract out there. We' re just going to go out to January. It' s going to cost a little bit more, but not incredibly. So, okay, so let' s collapse December. We' re going to go with January and we' re going to do the same thing. Our chart, our target here was 43.20. So the out-of-the- money target that we might choose is the 45 strike and the, in-the- money strike that we might use here would be the 35. So we' re going to go 35 and 45. Okay. Again, one out of the money near the target, one in the money, having some intrinsic value being a little bit more conservative. Okay.
Don' t have time to put that trade on right now, but I will before the bell closes, which closes this down. Okay. One of the things we need to look at here before we wrap up is actually. Okay. So just know that' s what I' m going to do. We' ll get it in our account. And so we' ll have two that have two targets. And our first trade, www, is only going to have one just going to have that one. I shouldn' t say one target. They each have a target and a stop, but we' re going to have multiple strike prices on these two trades here, right? This one' s the CR deal. Okay. Let' s show you a little bit about last week. What happened?
And, and basically I' m going to tell you the trades are just still going on. Okay. We got into crowd strike. We got into net and we had a target and a stop. And the idea, let' s, let' s look at a net first. The idea was that we had this target clear up there and we got in, in a big breakout day. And one thing I told you was, you know, sometimes the midpoint of the candle will act as a support area. So, you know, if we' re going to get in on a big long candle, let' s buy enough time that it could come back, maybe test that as a support area. We don' t know if it is going to do that or not, but it does have a little bit of activity here.
If we had a really short, short timeframe, we would be really concerned and probably would have wanted to have exited it. Maybe probably yesterday, right here. It' s like, oh, it' s starting to pull back here. It' s like, ah, maybe I' m going to pull back. We don' t really know kind of a pause in the action. Um, so we. Re going to give it a little bit more time to see if it bounces that midpoint of the candle and goes up; it flutters around down here next week. We' ll have to close it out early. Okay. Crowd strike is pretty similar. It' s our WD. We have a nice big, tall projection for it. So we bought quite a bit of time. Our target out here is up here about three forty.
Okay. And it went up, came down; looks like kind of this old area around 300 look like maybe it was some old resistance. Now might be acting as support. It looks like the stock' s trying to make its way back up. Okay. So we' re going to let those two trades play out and we' re going to watch the four or five new trades that we put on today. Uh, technically one of them has two strike prices. All right. But the same target, same stop loss. Now you guys have been fabulous. I hope your subscribers, if not going down right now, click on the icon on YouTube, that blue icons. So you can get to our content so much more easily. Okay. If you' re not following Cameron or night, do so follow.
Follow us on Instagram, follow us on X is super easy. And then as you' re kind of working with things, maybe if you liked that experiment that we were doing here with an out of the money strike at the target and an in the money strike, maybe that' s something you want to experiment with in your own paper money account. We ll follow up in our class practice account here, uh, those trades. And we' ll talk about, uh, if I did manage them differently during the week because of what happened with the stock. All right, you guys, so thank you so much. I did not see a survey or anything of that nature. So, and you did great on it last week, but if you found this helpful and useful, hit the light on the way out, that lets others find our webcast here as well.
Cameron, thank you for your assistance here today. And coming up is going to be brand s' mores with getting to know Schwab.com. Teaching some really cool stuff off the website that I think a lot of people can really benefit from. I' ve enjoyed sitting in on some of those sessions as the chat person. So, top of the hour, Brent will be there. We' ll see you back in 15 minutes. Bye bye.
