Actually, the 10 day moving average is neutral, the 30 day MA is up and the 100 day MA is down. Therefore, today, there is no current trend, up or down. As I said before, I don't trade the S&P options as they offer an inferior return. I can get double or triple the return on other symbols.
Why would I trade in the S&P options when I can get double and triple the return on other symbols? That is not logical to me.
You get higher return for a reason, obviously: higher volatiltity. Or do you spot out 'symbols' where you think vol is mispriced? That would give you the ultimative edge - if you're right, of course.
You haven't done your homework, rosa. For example, the quote on the S&P 900 call is 26.30/27.50 and the put is 26.10/28.00. For simplicity and discussion purposes, let's say it is 27 on either, that's in the middle. Selling an option for 27 when the underlying is 900 gives a return of 3% on the strike or symbol price. Why would I trade the S&P when I can get 10% or more regularly on other symbols?? I apologize. I find I am teaching, or maybe preaching, and I do not want to do either. I will refrain in the future.
i fail to see any correlation between option price and underlying unless you are long or short the underlying, then the option is not naked.
You don't see any correlation between the time premium earned and the margin required to put the position on and the costs in protecting the position in the event the market turns against you?