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Old May 2nd, 2012, 12:19 AM   #19
babutime
 
 
Join Date: Feb 2012
Location: Canada
Posts: 451
Quote:
Quote from oilfxpro:

Today I fucked myself up again , I covered my shorts for 80 pips.If I hadn't done that I would have been O K.

If I had not listened to anyone , I would have made a profit again today.

The moral is if you want to win , u have to stick to your intuition about the markets.

Woulda coulda shoulda... but didn't ...
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Old May 2nd, 2012, 04:09 PM   #20
oilfxpro
 
 
Join Date: Oct 2007
Location: london
Posts: 1,600
Quote:
Quote from atticus:

IG Markets. UK Dealer.
How would you trade with I G on their daily options?

Let us say we go short calls and puts for the daily premium decay.

How would you cover risk to a minimum?.
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Old May 2nd, 2012, 04:28 PM   #21
atticus
 
 
Join Date: Mar 2007
Location: USA
Posts: 12,879
Quote:
Quote from oilfxpro:

How would you trade with I G on their daily options?

Let us say we go short calls and puts for the daily premium decay.

How would you cover risk to a minimum?.
I wouldn't. It's for suckers.
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Old May 3rd, 2012, 04:39 AM   #22
oilfxpro
 
 
Join Date: Oct 2007
Location: london
Posts: 1,600
Quote:
Quote from atticus:

I wouldn't. It's for suckers.
Suckers who like premiums!I want the daily decay , it is too tempting to not get sucked into.I want to take option premium when market is stuck in a range on a daily basis.

The best I get into skimming the spread at I G is -2 per leg, so I am still paying 2 *10 = 20 pips on a butterfly middle 4.I skim the spread by waiting for a move towards higher prices , before selling call or puts .On buying the spread is skimmed by waiting for lower prices , sometimes I get caught if I buy first , so I always sell first .

The daily options have big decay and 80 % of the time the market ranges, so I look for ranging opportunities ,or directional days , but I get clobbered with sudden unexpected moves.


If I moved to interactive , how much more spread can I skim on the weekly options?
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Old May 3rd, 2012, 11:17 AM   #23
rew
 
 
Join Date: Jan 2010
Posts: 1,685
The issue is not how much you make during the 80% of the time when the market stays in a range but how much you lose the other 20% of the time.
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Old May 4th, 2012, 04:42 AM   #24
oilfxpro
 
 
Join Date: Oct 2007
Location: london
Posts: 1,600
Quote:
Quote from rew:

The issue is not how much you make during the 80% of the time when the market stays in a range but how much you lose the other 20% of the time.
A writer has to understand the instrument on which one trades options.A well defined strategy has to be formulated where risk does not exceed the rewards .Covered or longer expiry puts and calls otm have to be in place for limiting risk , just in case price moves 50 % on the the short options , in situations like 9/11.

With options risk can be limited ,if you are prepared to pay the spread and put on limited risk strategies.How much you lose with limited risk strategies is the spread.

Here is some data of daily range from 9 am to 19 hours close , almost 75 % of the time the price closes within 70 pips .Depending on the strategy or combination of strategies it can be consistently profitable , that is what I am trying to figure out here.
Attached Files
File Type: zip eurusd601 options.zip (78.9 KB, 33 views)
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