Derivatives Trading

[maxinger]

Do you mean u do credit spreads like Bull put and Bear Calls?

yes correct.
do remember for this strategy risk reward ratio is not that great.

 

[Albedo]

yes correct.
do remember for this strategy risk reward ratio is not that great.

Ok, thanks.
I assume that you are doing OTM options for this.

Then may i ask, what is the DTE for your trades usually? And what do u trade when IV is low?

 

[maxinger]

Ok, thanks.
I assume that you are doing OTM options for this.

Then may i ask, what is the DTE for your trades usually? And what do u trade when IV is low?

yes. OTM options.
Because u want options to delay, DTE should be < 30 days.
too long DTE and market may not behave according to your plan.
too short DTE and you are collecting too little premium.


as mentioned, I don't check IV.
some people check IV based on whatever trade plans which they have established.
I check on futures / stocks charts. understanding of trend is important to decide when to sell option.

 

[maxinger]

something happening in dax / stoxx50 futures.

it is not moving.
day range has shrinked.

to consider selling call option @ 3725 strike price with protection.
obviously we can continue with the usual outright trading when price is going down.

hmmm. now it wakes up. becos Greece people wake up the markets.
then it reverses down.

 

[maxinger]

US Russell view

day range has been good at 1.2% - 1.4%. so most likely it will continue to be good.
past few days green candles. most likely it will be green but it doesn't matter for day trading.

 

[Albedo]

US Russell view

day range has been good at 1.2% - 1.4%. so most likely it will continue to be good.
past few days green candles. most likely it will be green but it doesn't matter for day trading.

I see 1220 as a support and 1260 as resistance. Maybe can do a IC on weeklys today.

 

[maxinger]

I see 1220 as a support and 1260 as resistance. Maybe can do a IC on weeklys today.

1274 - recent high
1260 - the number u quoted
1230 - current price
1220 - the number u quoted
1198 - recent low

this is my opinion.

u probably need to determine what strike price to use.
u don't want to have your options exercised.

definitely if u choose very OTM options, premium will be megre.

u also need to decide when to use Iron condor.
not all futures / stocks are suitable for iron condoring.

russell movement could be violent.
that's why it is good for day trading.

choose something where price has moved (up or down), and is going to quieten down.
because for IC strategy, u want price to stay within a small band for about a month

also IC has poor risk reward ratio. so your success rate has to be very high.

 

[Albedo]

1274 - recent high
1260 - the number u quoted
1230 - current price
1220 - the number u quoted
1198 - recent low

this is my opinion.

u probably need to determine what strike price to use.
u don't want to have your options exercised.

definitely if u choose very OTM options, premium will be megre.

u also need to decide when to use Iron condor.
not all futures / stocks are suitable for iron condoring.

russell movement could be violent.
that's why it is good for day trading.

choose something where price has moved (up or down), and is going to quieten down.
because for IC strategy, u want price to stay within a small band for about a month

also IC has poor risk reward ratio. so your success rate has to be very high.

Tried to do a 1215/1220 Call, 1260/1265 Put for 0.6 credit but didn't get filled. IV was pretty low yesterday, rank about 30% compared to last 1 month. I am using delta <10 to look for options to short.

Maybe it was a good thing that the order didn't go thru.

 

[maxinger]

asian markets review

seems like sgp and taiwan markets are taking a rest after many long red candles.
ie day range will be small.

Nikkei also resting and it has rested for few days already.

China A50 also resting.
and it might test 10 000 level.

 

[maxinger]

tonight US Russell view

day range should continue to be healthy at around 1.3%.
is it going to be uptrend? downtrend? swing up and down?
it doesn't matter

 

[maxinger]

today asian markets view

sgp simsci
downtrend, then pause with small day range.

nikkei
has been sleeping in small range.
hovering around 20500.
will most likely continue to sleep unless there is major change in chart pattern

china A50
10500 provides temporary support

taiwan
downtrend.
sgp and taiwan markets correlation quite close


usdjpy
uptrend

audusd
retrace up. overall downtrend

eurusd
downtrend. approaching next support level

gbpusd
?!?!

 

[maxinger]

commodities

not trading because too many things to do already

oil
obviously downtrend even blind people can see.
first signal to short 31 Jul, singapore morning time.
hmmm. what did the asians do to the oil?

gold
obviously downtrend even blind people can see.
1080 provides temporary support.
previous breakdown also triggered by asians.

 

[maxinger]

asian session update

usd strengthening.
usdjpy going up.
eurusd going down.


Nikkei started to wake up.

that probably pull sgp simsci up (u call that correction?).
but long term still downtrend.

 

[maxinger]

asian markets view

sgp simsci
yesterday inside day. overall still downtrend.

nikkei
attempting to breakout of record high level

china A50
sleeping

Taiwan
descending triangle formation. overall still downtrend


usdjpy
uptrend

audusd
sluggish

eurusd
gentle downtrend

gbpusd
converging to apex.
perhaps waiting for rate news

 

[maxinger]

asian markets mid session analysis

taiwan
continuing its downward journey

sgp simsci
attempting to continue its downward journey

nikkie
stuck at level around 20750

china A50
continue to sleep

GBPUSD
Has been sleeping for far too long.
perhaps might wake up tonight ?

 

[maxinger]

night market view

US Russell
day range expected to be healthy.
trend - who cares as we are day trading

Gold
level 1084 as of now, well support. it might breakdown anytime

oil
the last signal to short was 31 jul morning time.
be on alert.

US 10 years Treasury notes
strictly speaking still uptrend.

 

[maxinger]

asian market view

nikkei
20800 level appears resistive

china A50
most likely will continue to sleep

taiwan
yesterday long red candle.
today might be long red candle, or sleep, or retrace up a little.

oil
obviously trending down. awaiting signal

usdjpy
Trending

audusd
no idea

eurusd
gentle downtrend

gbpusd
it decides to sleep again

 

[maxinger]

next mon asian markets view

next mon asian and europe markets view.
probably markets will continue to sleep and sleep.


nikkei
day range quietened for many days.
nk trying to pierce 20800 level.

china A50
day range quietened signifiantly for many days.
probably trying to hover a little above 10000 level

taiwan
downtrend but last fri day range rather small.

India Nifty
past few days day range small.
will probably range around 8555.

europe STOXX50
Past few days day range quietened significantly.
it might continue its sleepy / jerky pattern.

Euro Bund and Bobl
seems like wanting to trend up

usdjpy
mildly uptrend

audusd
primary trend down
secondary trend up.

eurusd, gbpusd
jerky

 

[maxinger]

european markets view

stoxx 50
last fri market sleeping.
last fri US NFP.
today might move.

gold futures
overall downtrend.
currently in tight range

WTI gold futures
overall downtrend.
approaching next support level $46.50

eurusd
sooo choopy.

gbpusd
no comment

 

[maxinger]

US Russell view

level 1200 well tested.

day chart downtrend but for day trading ,who cares.

day range has been very healthy past few weeks.