<object width="425" height="344"><param name="movie" value="http://www.youtube.com/v/qld9oLORs58&hl=en&fs=1"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><embed src="http://www.youtube.com/v/qld9oLORs58&hl=en&fs=1" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="425" height="344"></embed></object> Today's Market actualy made sense
Joe, I really appreciate the time and effort you put into your videos. I've been an investor for 11 years, an options trader for 3 years, and having just bought a house in May, sold out of all my long positions. In hindsight, awesome timing (totally unintentional, but I did watch a massive intraday reversal that week and thought, "I bet some puts on the SPY would be smart...it was at 142 " Anyways, I have been sitting in cash watching, waiting, and learning. I'd like to become more proficient in trading the eminis, and I was wondering if your indicators can be used in thinkorswim. In addition, any books you can suggest? Any help at all is, as always, appreciated. Best, Joe
JB: Good call on the probably rally and the 745 low area. Gonna need more on the extension that may <i>seem</i> likely - which we DO NOT trade off of, lol. Been honing the call hedges using SPY for ES and YM and QQQ for NQ, EMD and TFS. Actually placed them at the open and took the day off. Wild late day rebound, but hedges kept a 3 contracts SHORT position flat = NICE! pay$
My favorite strategy using stocks and options has always been the synthetic straddle, especially in this environment. I would like to apply a similar strategy by going long/short the ES and then buying puts/calls to hedge. Since I like to remain delta neutral, it has been a simple 1x2 position using stocks and stock options. If I wanted to use SPY options (I prefer ATM) what is a good ratio when trading ES?
Thx ammo, I <b>meant 10</b> ATM SPY call option <b><i>nearly</i></b> equalled last Fridays move <i>not 1</i> ATM SPY. So I extrapolated and calculated ATM calls would more exactly equate in $$$ for the move. According to you 1 point in SPY equals 10 for the ES. Not yet certain how to properly calculate when it comes to using SPY options. But for now 10 calls equal about 1 ES to hedge. pay$
if you use deep in the money ,if spy is trading at 84,then 74 ,73,72 ... would be deep in the money and would move almost a point for each spy point,so a 5 lot would win/lose $500 for 1 point move in spy,equal to 1 lot of es that would win/lose $500 with a ten point move in es