The Fibonacci extension tool is best used to isolate profit targets for extended trends on all time frames. We used it regularly [and still do] during TSLA's run-up from $70 in late 2019 to it's all time high of $1,240 earlier this year. It kept us in the game and was a tremendous help in option selection during the entire rally. Sometime in 2021 it became a staple for all of our trades and trend analysis.
The latest success applying it to option trades has been with UNG. Our short-term trend model (PRO Service) issued a Buy on March 23rd and we purchased the July 15th $18C @ $2.45 ($245). The shaded rectangles on the chart below are derived from the overlapping Fibonacci extensions based on two UNG impulse/retracement legs from Dec 2021 to Feb 2022. The implication is for UNG to rise into mid-to-high $20's (and as high as low $30's) during the weeks and months ahead.
A breakout above $25 suggests $30 or higher by mid-July. At $30, the July $18C, purchased on Mar 23rd @ $2.45, will be worth at least $12.00, but by then we will have likely rolled over to a new strike and expiration to take better advantage of the inherent leverage of out-of-the money options. There is no better feeling (read: orgasm) than a triple followed by another triple.