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Profitable 100 ticks weekly Dow Dax daily options strategy

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Trading short on indices,  there will be 2 months of profits and a possible 10 months of break even or losses. Why not feel the discomfort of break even 2 months and profits 10 months?

 

How You Handle Discomfort by Dr Andrew Menaker

 

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oilfxpro wrote:

Trading short on indices,  there will be 2 months of profits and a possible 10 months of break even or losses. Why not feel the discomfort of break even 2 months and profits 10 months?

 

 

 
This in my opinion is only applicable over long term. Trading the swings means you trade long or short according to the prevailing direction for a short duration. Once more I'm not saying this strategy is wrong or a preference to trade in only one direction is also wrong. I'm simply stating that I prefer to trade with the trend on a short term basis no matter the direction.
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I like to take my profits

 

long 12910 dax at support

12900 put  long 31

 

closed for 24.5 ticks

 

 

 Clipboard03.jpg

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Another 24 ticks profit from a daily option, I could not call in advance  ......the price was falling fast trade.jpg

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I have two open trades, one is daily and second is a weekly option(weekly options are not part of this this strategy)

 

open trades.jpg

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Open trades now  and closed trades   for 86  ticks profit today 

 

Can't call all trades in advance , have to find your own method to rely on.

Clipboard01.jpgClipboard012.jpg

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Here is total ticks profit for today   .

 

96 ticks profit , most trades were posted in advance.

96  ticks.jpg

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i g index have put up their daily option prices for daily call at the money to 40 ticks for the daily call 13030  .This equates to daily premium of 160 , i.e 80 to the and 80 to the low , daily range open- close is only  100 historical.

 

so I G option prices  are 60 %  higher than average daily volatility.

 

I am not trading until option prices return to norm of 25 for the call  at the money

 

ig.jpg

 

 

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we can't make money, if I G Index increase option prices.

 

i g index had put up their daily option prices for daily call at the money to 40 ticks for the daily call 13030  

 

The market closed at 1.3060  , a 30 point increase from 13030 , the option prices 40   ,so I G  prices for daily options were extremely expensive .

 

When option prices are high  avoid buying/trading.Today I lost by overpaying on option price 13030

 

ig.jpg

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i g index have put up their daily option prices for daily call at the money to 40 ticks for the daily call 13030  

 

Open to close values are 20 to 40 for last few days, I G Index is demanding 85  ticks for put and call, for daily options, it should be 45  including spread.

 

Can't make money when prices are so expensive.

 

No trading until further notice.

 

When option prices are high, use spreads.

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Hi  - Dax futures are down 170 pts today, and the Dow saw a significant movement of ~340 yesterday which obviously impacts options pricing. As our desk act as market makers, and given the fact bidding vol is relatively high at the moment, they thought it prudent to increase vol on these options. Our aim is to price as accurately as possible, however if you disagree with our desk there is always the option to sell volatility against us if you so wish. 

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If bidding is high, more traders start making money using this strategy, option prices can go up?Do I G also use demand/supply in the forum posts?:smileyvery-happy:

 

Did I g know ECB Brexit negotiatons report release details?

 

BTW  I am not blaming anybody or complaining, just point out the increase in option prices, and how to trade when option prices are high.

 

:smileylol:

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Hi - I'm not sure I follow your reasoning. Yesterday the Dow had a huge daily range (and the Dax today), and volatility overall has increased significantly. This is obviously going to make the options more expensive, especially given such a short expiry date. You're not going to be able to buy an options straddle for ~45 on a 340 point movement and global vol bidding, in the same way as buying for ~45 on a regular 50 point movement and no notable vol buy side action.

 

EDIT: also, we do feel these are priced accurately. The good thing with options is that if you think we are mispricing you can of course sell volatility against us (the MM's) 

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volatility is very high  300 point fall on Dow this afternoon.Writing options could have lost 100 tick  

support area.jpg

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option premiums are still high  on daily options

 

Thinking of new strategy when option prices are high.

 

Buy weekly and sell daily , daily straddle premium is 80+  weekly is 170i g option prices rexpensive.jpg

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Here is volatility for last twenty days , it 30 % lower than long term average , yet option prices are up 30%.Next time  sell daily buy weekly.

 

VOL.jpg

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Trading  option spreads with I G's higher spreads, using an alternative  when option prices are crazy

 

 

 

 

 

.

option spreads.jpg

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i g daily option prices are expensive and high at the moment..This makes it difficult to make profit, by buying high volatility at high price, if  there is no volatility on open to close prices.There is some 50 point open to close average price, the daily straddle cost is 80.

 

Paying high option price will result in losses.So I do don't trade.No trade is a trade!

 

Traded weekly instead using modified strategyig daily weekly.jpg

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Option prices have normalized, opportunities to makes money.Patience is a virtue, in trading it pays.

 

option prices low.jpgpatience   cats.gif

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I am not a forum singer singing about technical analysis. It is all about practical trading, placing trades and making money.Mental discipline, accepting a risk and prepared to lose , no pain no gain.

 

Open trades 

 

open12334.jpgautomatic mind.gif

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