Multioption, Do you have any historical data regarding your trading method? I.e. number_of_wins / number_of_trades, average_win / average_trade?
CME bluehorseshoe loves CME gentlemen-- suggest you start your engines and wait for the flag to enter calls on this one - I believe a st bottom is being put in this week. Remember - it's been a falling knife - so be nimble and don't get burned on a candlestick! I am long some cmj LL (dec 360c) - looking to spread - only Q is what strike and how many. looking for target of 355 by Friday - then we'll review the tape etc.- maybe it can trade back to 365 - thereafter downside risk- 10-12 points Ice
You really like to add salt to his wounds, don't you? His current position bought @ $4.50. Another typical Multioption GAMBLE.
Iceman, be careful with that call skew. I always like to tell guys to avoid buying calls on sharp selloffs because you are paying for the skew. If CME does start to rally, the skew will flatten as you approach the strike. In other words, you are really fighting an uphill battle here. You would have been better off to sell the put skew to create the long deltas.
A Good trade on AX: Sell naked Call 65 Jan at 1.20 Buy PUT 45 Jan @ 1.05 Total trade Credit : 0.15 I see AX highly overvalued. P/E is 72. Not bad to be short at 65. P.S. I will not be able to do this good trade as my plate is extremely full.
That looks very solid after seeing the chart. Exchanges[cme, cbot] are trading at incredible P/Es, something to keep in mind. I would keep a close eye on the cme and cbot when trading this bear risk -reversal.