Is anyone else finding there to be slim pickings among Ron type options to sell right now? A majority of the markets seem to be so flat, option prices and ROIs are low. I assume the ebb and flow market results in situations like this from time to time.
Ron, is this a time when there aren't a lot of opportunities to take advantage of?
PS- I have CL and ZW strangles on presently and am short CC, ES & NQ puts and KC calls, but these were put on a few weeks back.
Last edited by mu2pilot; March 31st, 2014 at 08:50 PM.
Yes, I am using it, just not every day. I have all of the same information in a spreadsheet that not only computes span margin and ROI, it combines it with real time quotes as well as all bids & offers. I've only be at this a few months, but it feels like I have less to choose from now than I did 3-4 weeks ago.
One of my many studies to come to terms with an underlying
Since my first post to this thread over a year ago I have been trying to come to terms with diversifying my trading. At the time Kevin posted a reply and opened my eyes to the many other commodities. I have trade CL for so long I find it hard to look elsewhere. I have had success in NG. I have noticed not all commodities trade in a technically structure price pattern. For example, I got burn on CC strangle with a moderate loss. I have been trying to watch volatility. But there are not very useful tools for this. So I have built volatility into my excel charts for current month and yearly volatility percentile. This has started to help me look elsewhere. But then I see the price chart and don't see what I consider to be an organised price movement. Anyway it is a challenge. Here is a link to the type of paper trades I continually do to try and understand all the variables of a commodity. Any feedback is welcome. Thanks to all for contributing to this thread. I don't know anywhere else where I would feel at home.
With as far OTM as we sell I don't think that you should avoid ES just because of what technicals say.
For example, in late Oct the RSI was over 70. ES was at a high of 1750. ES had just went up 100+ the previous 21 days. If you avoided it you would have misses the next almost 100 up for ES in Nov & Dec.
On March 7th ES had just gone up almost 150 in 5 weeks. I'm sure the technicals were high. But if you sold that day you would have been fine because it traded in a narrow 37 point range the rest of the month.