Discussion in 'Trading' started by S2007S, Aug 2, 2007.

  1. S2007S


    another triple digit gain....

    nothing to worry about...probably set new highs next week....cnbc can get their party hats ready.
  2. said early this week is was time to buy the dips and certainly it was

    another 100+ point gain for the dow
  3. look for the SP retracement to the 38% fib.= 1484.
  4. i am betting we get to the 68% level before it goes to shit. I believe that is about 13,740ish on the dow.

    i hope the correction is a slow one and we grind up for the next several weeks, would love to get the vix back to the low low teens. I made more money on the vix blowout than the delta of the falloff! Love that VIX baby!!
  5. How do you trade the VIX? On cboe?
  6. You can trade VIX futures I believe (never done it). I have traded VIX options recently which trade on the cboe.

    What I was really refering to is the shot of volatility we just went through, it was awesome if you were long options. Several months ago when the s&p was trading at 1390, I bot 30 of the Dec 139 SPY puts for $4.50. I just sold those out yesterday for $4.70 when the s&p was at 1455. So even though I was 65 points higher than when I bot these, AND have whittled down 3-4 months of time, the blowup in volatility gave me the chance to make a small profit and more importantly, give me the chance to reset.

    If you don't know options trading, I HIGHLY recommend getting versed in them. They give you great leverage, can give you more room for error, and are a great tool if you want to trade rather than invest.
  7. A good example of options rather than stock.

    Here is a trade i put on on Tuesday of this week-

    07-31-07 12:26 PM

    Forget the ES (that was a futures contract). I closed these options out yesterday (24 hours later). sold the 20 SPY Dec 147 puts at 7.30 (28% one day gain), and sold the 10 US STEEL jan 100 puts at 13.00 (39.8% one day gain)

    I just wanted to illustrate the use of options for some who have little or no experience trading them.

    For the same reason I was paid by VIX blowout, I refuse to buy calls for the bounce I am looking for due to the loss of said VIX.