I tend to agree, 1M contracts traded on ES by noon is HUGE by all standards. i have not seen this in a long long time. However, with so much panic in the air much more volatility is to be expected at this point.
Bad luck on that one Scienter. For more thoughts on possible hedging approaches: http://www.elitetrader.com/vb/showthread.php?s=&postid=971374&#post971374
Good luck with the 1275....with the hedge you have, I agree, you should be ok, unless of course the institutions step things up a bit this afternoon, which would be doubtful. BTW, I did close the 1280 at 10:00 this AM b/f the breach @ 1285... Have you/do you regularly hedge as I described below, or have I misunderstood recent posts? " was actually thinking a bit more about how you hedge. I like the idea of being proactive, e.g., buying SPY puts cheap when the underlying is in an OS condition in anticipation of a correction and then followed with a placement of a bull put. Have you had success with this on a regular basis? I imagine this type of hedge cuts bigger into your profits on months were you can't complete the IC... "
Update of my 1265/1275 protection scheme: Opened : 10 MAY CALL 1340/1350 @ 1.50 credit 10 MAY PUT 1265/1275@1.80 credit 10 MAY SPY 129/128 @ 0.35 debit 15 JUN SPY 128@1.50 We will see.
This correction is faaantastic IMO. Breathing volatility back into the market after a mind-numbing 6 months. For the many millions of lurkers/non-contributors/newbies following this thread: be mindful of SET,NDS for your SPX/NDX positions, don't want to see any unfortunate surprises MoMoney.
Yes. Most of the time. The market can't stay in the oversold or overbought condition for ever. The market is dynamic; so if you are on the right side, you wil be ok. I bought some calls this morning on RUT and I am also adding some SPY calls later today.
i am ready to pull the trigger on some bull call spreads at the first sign of a reversal. havent decided which instrument just yet.
Didn't roll, just reversed the position on the jump right at the open this morning. (Bought back the MAY 1275 shorts) Unfortunately I was just looking to B/E. If I'd been willing to stick it out, I could have made a grip of money on the sustained drop.