Support & Resistance
Price levels where a stock has tended to stop falling (support) or stop rising (resistance).
Support is a floor where buyers have repeatedly stepped in; resistance is a ceiling where sellers have. They are not magic lines, just areas where past behavior clustered, often at round numbers or prior highs and lows. Traders use them to pick entries and, for the wheel, to choose put strikes near support.
For example
If a stock keeps bouncing off $20, that is support. A wheel seller might sell a put near $20, a level they would be happy to buy at.
Related terms
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