Buying ES volatility after-hours and selling after 9:30 AM EST

Discussion in 'Trading' started by short&naked, May 8, 2011.

  1. The one pattern in the futures index markets (ES, NQ) that repeats even more regularly than the opening gap is the switch from a low-volatility environment after-hours to a more active and liquid market from 9:30 AM - 4 PM.

    Accumulate long volatility positions during calmer, after-hours
    How would one best go about doing this?

    Conversely, it should be possible albeit less profitable to short volatility during active hours and dump the position back onto the market when volatility calms down (which it predictably tend to do).

    There is definitely a pattern here that is more due to market structure than anything else. If the above does not suffice in exploiting this pattern, what are some approaches that might work?