Edge of buying the stock market dip

Discussion in 'Index Futures' started by Trading Education Buyer, Nov 18, 2016.

  1. You forgot to say, pre-requisite: bull market.
     
  2. The Indexes are well supported , how often do you get bear markets?Most of the time the markets are down 5% to the monthly lows , then they pull back to the peak of the range in the following months.

    The secret is to manage risk , with options etc even in a bear market.You don't know which of your dips is going to be a bear market begining.
     
  3. Does not has to be bear, can be range and you underperform.
     
    der_kommissar likes this.
  4. Jones75

    Jones75

    Those are good numbers, congrats.
    I operate somewhat similar, using long put synthetic straddles on higher beta, and robust vol stocks/puts and find profits far exceed losses.
    Downside: stock starts to go sideways and now stuck holding for longer than estimated, and then put starts to deteriorate.
    Conclusion is same as yours, upside far out weighs the downside. :thumbsup::thumbsup:
     
  5. option volatility is priced 50 % put 50 % call , you can make 50 % buying only calls

    You really are freak of nature
     

  6. I only trade index futures , this is to their narrower range than stocks.Stocks can have huge movements , just have to be careful.
     

  7. sell some options and get premium decay edge

    technical analysis dax signal