I have a question. Please note that I have never traded before. If volatility becomes too low for someone to trade options, then why not switch to stocks?
Indeed. It's a place where the whole world is one big replication trade. Endless liquidity thrown at smaller and smaller yields. Low to high vol regime shifts become increasingly painful if not deadly. Deja vu?
Agreed to the first part: what lack of volatility? Sure it's thin out there but that's where the volatility is coming from. And earnings season hasn't even started in earnest yet. Disagreed to the second part: You don't trade size for pennies in this market; you need a correct opinion and a decent pair to take the automation head-on.
The reason why there's so many people complaining about a lack of volatility is because they are dumbass losers who trade a moving average cross-over on a 5min chart.
volatility does nto concern me as much as liquidity, but actually you have no idea what it means to be a scalper, talk to some of the floor traders if u know any
there are literally no pullbacks in this market. it is pure ground and pound. there used to be deep pullbacks but now the market always dies at the high and then after a while grinds higher. for individual stocks, low volume combined with sub pennying makes trading a lot more difficult. like someone mentioned, you don't get filled unless the whole level goes through.