I don't really know anything about options except how to lose money, but in trading in general if I find a market is not working out for me I tend to just step aside and wait. Cash is a trade.
I am guessing do not touch, saying a certain price won't get hit like es 1290. See barrier options. http://www.riskglossary.com/link/barrier_option.htm
Well my system right now is to go long puts when the S&P breaks support. Today the 1284 big time resistance seemed to hold as it had twice before and we started heading down and broke through the 1279 support,. I took a small position then with put spreads that are now losing positions. If I had shorted 100 SPY instead for each put contract I put on, it would still be a loser only more. Well if we get a pull back to 1284 on the S&P and it holds, maybe I'll change my bias to long and can make this up. If I start going long, I'll let you know so you can go short and make some $.
"Do you have an eye peeled for RVX and VIX? I trade options on the vix so do follow that. I've stopped trading them recently because no trend seems to hold value for more than 1 day.
atticus, can you shed some light on how to trade the exotics. The only "market" i was able to find are basically betting sites, that has either very little volume or do not accept us accounts. Is there a real market that's relatively liquid and has exotics for trade, even if for the very common stuff like sp500 index etc.. thanks.
It's all OTC with banks or the betting sites. The major IBs offer equity exotics. JPM offers the product to US clients, but the barrier to entry is high.