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I am a newbie planning to buy naked calls
of large-cap and middle cap, common stocks traded in the NYSE and the NASDAQ.
Philip Thygesen of Stock Market Strategy (https://www.stock-market-strategy.com
) suggests to first identify the trend. One way, I opine, would be to compare the current SMA (or EMA) versus a prior SMA (or EMA). For example, the current 200-day SMA (or EMA) is greater than 200-day SMA (or EMA) for a year ago. Does it make sense? If so, would use use a SMA or an EMA? What timeframes would you use?