Timeframe is a very important concern for a trader.  This is especially true for markets like the one we are in the midst of now.  Things change on a dime and we are making trading decisions and not investing ones.  As a trader, you do not want to be at risk for any significant period of time.  So, as an options trader, your expirations have to dovetail with this approach. Take TSLA for example.  Here’s a 60 minute chart:

You can see in the shaded area that a High Volume Area (HVA) has set a support level around the $190.00.  These are fickle markets and we don’t want to have credit premium out there for very long.  Your time horizon is relatively short.  This is why we used an hourly chart to set the short term support.

We signaled:

6-27-16:  Based on our methodology a signal has been generated:

Sell (opening) the TSLA July 1st WE 187.5 strike put
Buy (opening) the TSLA July 1st WE 185 strike put 

For a CREDIT of $1.00 or more.  

This signal is not GTC and is valid with TSLA trading $189.00 or higher.

This afforded us a risk reward ratio of 1.5:1 (risk $1.50 to make $1.00 and we are at risk for only about 4.5 trading days. 

TSLA_60_Minute_Chart_6-27-16.png