Trading the exchanges

Discussion in 'Options' started by rickf, Apr 1, 2007.

  1. rickf


    I've done okay with calls/puts/straddles on equities (most notably with DNDN during last Friday's Mother of All Short Squeezes, thankyoushorts!) and am thinking of experimenting with some of the more active movers.

    Lots of stuff I've seen shows great price variance in the NYX, CME, BOT, NMX, and ICE. Any ideas on the best way to 'play' them in terms of options strategies? Eg, any opinion on using directional calls/puts versus more neutral strategies like straddles/strangles when trading the exchanges?

    Thanks for any info!
  2. you play them just like you'd play any other equity.

    Expecting a sharp up movement? buy calls. Expect low volatility? short a strangle, high volatility? long a strangle, etc..
  3. rickf


    Yah, that's what I figured, but given some of their wild price swings, I figured I'd ask anyway. :)
  4. well, if you think the prices are going to swing around wildly, go for long straddles.

    That's the play to make if you expect high volatility :)