 What's going on guys Preston here from x trades and today we are going to be talking about contracts selection or contract expiry selection based upon chart and How long you expect it to take for your play to? Hate your profit take so let's go ahead and get started. I'm gonna be using the Apple chart here but So let's say I'm just gonna go by like time frames depending on try to hit on like what every time frame Like the usual ones that people would trade on so starting off on a smaller time frame with the one hour Let's say you're looking at this hourly chart for Apple here back in late May and You're pretty much just we've gone through This one cycle of okay. We kind of got support figured out here We got resistance right here kind of like a profit take area in the middle right here. So We're going just one to two day swings Maybe like weeklies But yeah, so let's say you're looking at this chart right here And you pretty much want to continue trading this channel You're seeing this you're seeing the bounce off support. You're seeing a little bit of resistance here around 126 and then ultimate ultimate resistance 12775 so what you're gonna want to do is pretty much you're gonna be trading weeklies so If we're I got it pretty much pulled up here So we're looking at around in May sometime around there. So you would want to be trading Either like two weeks out. It's a monthly sometimes those will get better volume and Open interest you can see here back in around that time In this area like 120s There's pretty much Yeah, so we're looking at 126 12775 and we were near the Bottom of the channel here. You can see 123. This is like On-demand so it's pretty much live From that day May 12th 2021 of when we were around this area so Anyways going back to here. You can see there's some volume because we're near the bottom of that channel So there's some volume picking up here for like the 126 127 strike price so What these people are looking for and what you would be looking for is that you're trading a weekly you expect like one hold one Three days maybe so you're just getting that weekly contract and you're looking for the bounce-off support to get up to here nothing big scheme Just profit take one right here in the middle profit take two with Maybe leave some runners, but I would assume like just all out here and it's pretty much a first sell here And then runners to sell here but That's from like an hourly standpoint. You're trading weeklies You can't really get a good grasp of like the long term to where you're trading like monthlies or leaps so carrying on let's say we're looking at the daily chart here zoom out and Let me turn off on demand because at this point we're getting to where we are today so let's say you were looking at the daily chart here and you would actually be able to notice that Here is where we were in what I was just showing on the hourly chart. You can see we're kind of forming a base here Haven't been down here since early April and so kind of expecting this to hold this this support is Fairly notorious. Maybe we got some we're slipping under here, but It comes back and so that's what you're seeing here on the daily and on the multiple tests got a couple daily candles that Hit it bounce off And so you're seeing this on the daily chart and you think oh like this thing's gonna pop soon Like for sure and you're in at this point around like mid-may late-may getting into June And so you think okay like this could this could base for which base would be if it just like stayed in this channel But it's like loading up for that pop But you're you're expecting like the big the big pop then you'd be looking at Maybe a monthly, but I would go with like something in at this point. We're in like early or late May so you'd be looking at like August maybe and Pretty much like it's gonna cost you extra premium at this point we're in July, so it's a little cheaper, but Back then it would have been more expensive and I guess we could pull it up. So let's see We were in let's go back to on-demand here and then So that's let's go here And then we're looking at so we're pretty much looking at August Just to play it safe, you know because July 16th now would be Pushing it with we just got to all-time high and you're expecting like all right Like we're gonna break out. It's gonna go far and you're putting in some good premium like a good amount Or for your account size like you're getting a good position in there Then you're gonna want to look at three months out two months out if you're expecting something good to happen And so we're looking here at May 26th I'm in on the West Coast, so This is two hours into the trading day and you can see that There's there's some good open interest volume is what it would be usually for more of like a leap Contract is about three months out at this point. So we're seeing you could get what a 130 Strike price call for Apple on this day at five for about 495 $495 per contract and you're around like 127. So we're right at This resistance right around here like we're pretty much getting up there. So you're you're watching it you think it's gonna break out and You get in and so that was the 130 strike price in August 20th 130 you're looking at 500 and we're down here. So now let's say like you you got in because you know that that's gonna happen now when we looking at 130 now you're at 1615 per contract and so that just shows how I mean one Looking at a bigger time frame, whether it's like the weekly chart daily chart or even The four-hour chart it can help you like notice these big moves. Whereas if you're just on the hourly chart not necessarily looking at like this stuff on the right, but you know like You can kind of tell there's something but for here. It's you're just looking at Like channel trading and you're trading weeklies, which are fine Definitely like some big moves can can make you some some good money, but you want to look for The the bigger moves. I'm sure all of us do So that's pretty much what we're looking at here for daily Weekly is where you can kind of see bigger trends Where's the chart? So weekly we could see here that we're kind of in a up and then now it's sort of Flagging in a way you could say yeah, you could say that we're we're sort of flagging and so at this point You could go like pretty far out with the weekly and we're looking at some far-out contracts And if you're looking at a weekly chart like each one of these candles is a week And so your expiry is not gonna be you're not gonna be playing a weekly because you're basically playing one of these candles You can't take a trade based off of that. And so You would want to go a good like Like six months out or so we're looking at I mean not not getting into January Although there's nothing wrong with it if you see like this this kind of chart You're like, all right, like we got a little trend going on here Something like that and then we got obviously the This right here, so it's like an ascending triangle kind of and so this breakout is gonna be all-time high one and two It's gonna get some good momentum going because it's Apple and we Even in the chat room we're talking about just waiting for this breakout for a while And so you would go with an expiry like if we're in we're in July 11th now so maybe like looking at September or October and looking at like a 160 kind of contract so you can see yeah We got some good volume there a good open interest and then if we're looking at September It's a little closer. So maybe like a 155 Kind of contract. So there we go 27,000 They are still a good volume on the 160s for sure So people are people are noticing and that's just what you want to be looking for so our To summarize what I just talked about you're looking at hourly is going to be like weeklies Short shorter term kind of like lotto plays not necessarily like not necessarily that but those smaller shorter term Like let's get a good move play and then when you're looking at the Daily chart four-hour chart you're gonna be trading monthlies because you have better data and You can like see a breakout coming you can see a base and see that okay Like I think we're gonna break out here And then when you're looking at a weekly you get stuff like this where it's like an overall just the long-term trend is About to break out and it's gonna be big, but you don't know when it'll break out because we could Reject this resistance go back down to the trend line and get back up. So you want to go like a Couple months out so that you're safe and you're fronting some good premium All right some good capital for that premium. So you're gonna want to be protected with far out the expiration dates