what trade to put on in this mess

Discussion in 'Options' started by buybig, Jan 22, 2008.

  1. buybig

    buybig

    Folks,

    what trade do you guys recommend for this market?

    what trades are you ACTUALLY putting on as of today?

    what vehicle are you trading and why?

    thx :)
     
  2. I'm about to enter with a 10% stop and will plan to exit within the last hour.
     
  3. JamesJ

    JamesJ

    well, i can tell you what i did so far today.
    was my best day for this year. traded futures, for example ES and European index futures.
    initial position was small, with a stop relatively far away (cause of the volatility), when the trade went in my favor by the amount the stop was away of entry, i doubled the position, and kept adding while the market went in my direction, and kept raising the stops.
    when i thought buying/selling pressure gets lower i went out manually.

    worked great so far today, managed to ride the ES upwave after open for example, or in the european markets the short squeeze this morning.

    just don't add to a loosing daytrade position especially in this market conditions.. things may turn from bad to disastrous, when you get caught on the wrong side
     
  4. .ndvnl $NDX 1600 put
     
  5. Pita

    Pita

    I just wait for the YM to drop below 11900 again then I short with a 100 point stop and a 1000 point target. Thats all, maybe trailing the stop a bit afterwards.
     
  6. buybig

    buybig

    sorry guys,

    i was looking for option plays..

    ym, es, etc too short term for me

    :)
     
  7. Buy sheep
    Sell deer
     
  8. i trade the DJX puts, but only puts, as the premiums for calls don't make the trade as profitable as puts. . . also XAU puts, for gold decline. . .

    i buy 2-3 strikes in the money, and try to catch a 300-400 point swing in the dow, which is 2-3 + point swing in the put option.

    i sell on the open if there is a gap down open, when the implied volatility is the highest for the day.

    then reload at the end of the day if the market looks exhaustive, but i did not reload today. . .

    sportsguy