Welcome to NexusFi: the best trading community on the planet, with over 150,000 members Sign Up Now for Free
Genuine reviews from real traders, not fake reviews from stealth vendors
Quality education from leading professional traders
We are a friendly, helpful, and positive community
We do not tolerate rude behavior, trolling, or vendors advertising in posts
We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community. It's free for basic access, or support us by becoming an Elite Member -- see if you qualify for a discount below.
-- Big Mike, Site Administrator
(If you already have an account, login at the top of the page)
I recently tossed the question out there about trading on days Bernanke speaks. Thanks for your replies. In that same vein, I now ask for your thoughts on trading on a quadruple witching day. Best to stay clear due to extreme chopiness or a good opportunity to cash in on some nice movement?
Can you help answer these questions from other members on NexusFi?
I've learned to avoid trading Wednesday-Friday on those weeks. A lot of position plays going on, and especially right now adding "explosive" situations in Japan and Middle-East into mix, I rather have that long due root canal operation at dentist... equal pain but at most times ends up being less expensive, lol!
Broker: Advantage Futures, Ninja/TT and InvestorRT/IQFeed.
Trading: Treasury futures
Posts: 312 since Nov 2010
Thanks Given: 194
Thanks Received: 911
If you are a trend follower, my opinion is you will have problems on triple witching days, especially if volatility is already on the low side. The prices of underlying instruments tend to get "pinned" to the nearest strike price of options on the instrument, a function of the fact that the "time value" of the option has decayed to almost nothing. If, for example, ZBH11 is trading at 120 and you can buy a ZB 120 March call for two ticks and you can buy a 120 March put for the same price, you make a tick if ZBH11 settles more than 4 ticks away from 120. You buy the straddle at 4 and anytime ZBH11 is more than 4 ticks away from 120, you can lock in the difference by selling or buying the futures contract. The closer the future gets to settlement , the smaller that difference will be, both because the time value continues to decay and because some profit is better than none (owners of that straddle get more aggressive about taking profits the closer in time you get to expiration".
"You don't need a weatherman to know which way the wind blows..."