Suffer strings of losses, which cut my acc down by nearly 8%, time to step aside and watch from sideline, time to bring coffee to fellow traders Dare not short, cause a relief rally is quite scary too. Imagine i already cut down my trading by 50% and still suffer 8%, btw, i'm a swing trader, not day
if you take a break at least watch what happens this week, options expiration on friday, a lot of folks buying puts thinking they will get rich, the bottom is dropping out on cnbc, but all of a sudden there will be a rally before friday and things will look up, the puts will be worthless and you'll see whose ruling the market, the options guys will make it so, then we'll go down again but until after friday, just look at your charts around options expiration and see what happens, you want to be watching these weeks, these are the weeks that show you how it works and around the 1st of the month, how about keeping an eye on etrade to see what happens when they dump it and options are going to expire, it will run up before because the obvious thing to do is buy puts, i'm going to watch it, theres allot of learning in this volitility
the put-call ratio was about 2.5 before the market started plummeting a week ago. you could have been contrarian and sold naked puts, in which case you would have gotten your a** handed to you by now. also, any negative surprises this week would probably cancel out any options related gains.
earlier this month I had sold straddles on ej, yge, wx, stv. thank God I closed everything out ahead of this collapse. Close, very close. not by the hair on my chinny chin chin.
that was last week not expiration week, I don't follow any options indicators or volitility, I like to watch when price is out of hand and cnbc is panicing and bob pisani says that the most puts ever on qqqqs or the dias have been bought, then I watch to the volume and the action on the charts, I know most guys are'nt going to buy in the money options their going to buy the way out of the monies to get rich, so I watch for that and I buy puts or calls, last time we dumped like this its was thurs afternoon when bsc went o 98 then to 120.00 a 7 times return, then the following week they ran it down into thurs afternoon again and the 120 were .05 each or 5.00 a contract, the next day they were 545.00 a contract, 5.45 each, i'm sure the indicators said not to buy them thurs morning, but 1000.00 would have made you over 100,000.00, I just think these are good weeks to learn and watch the chart and price action, fear and greed and monday or tues after fridays expiration
just looked over the qqqqs and the I think that if you watch tomorrow and see if they run it down to 48 or 47 then the 49 calls would be a better play then the 49 puts or the 46 puts which alot of guys will buy, this is buying not selling options and no straddles or anythign else just plain options buying, something to watch, doesn't mean the qqqqs won't end up at 44.00 I just think it won't happen until after the expiration
I think the nas will bounce off the 2540-2524 area, it hits a trendline there in the area of 2550 and I think it will bounce before friday and cause a short covering day or 2