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FiftyEight Fluffs Around In Futures

Discussion in 'Derivatives' started by fiftyeight, Jan 26, 2015.

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Aussie Stock Forum Sentifi Top themes and market attention on:

  1. tech/a

    tech/a No Ordinary Duck

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    Buy put options which has you basically long
    OR
    Sell Put options and be short?
     
  2. cynic

    cynic

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    If you substitute the word "put" with the word "call" then that would be correct in respect to delta. However, there are always the other greeks to consider (theta, vega etc.).
     
  3. fiftyeight

    fiftyeight

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    And this is why I have not touched options yet :confused:

    I want to be short with fixed risk. Not fussed if I blow my initial outlay, just do not want to be holding any contracts during this volatility.
     
  4. CanOz

    CanOz Home runs feel good, but base hits pay bills!

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    Think of it like insurance. If you're selling Puts you are selling a right (but not an obligation) to sell the underlying at a certain price and you collect a premium for doing so. If you are buying a put, you are buying the right to sell the underlying at a certain price and you pay a premium for doing so.

    Selling options requires a different skillset, usually for advanced practitioners.

    Thats all i know...:D
     
  5. fiftyeight

    fiftyeight

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    That is what I thought???

    ASX for example

    I buy a put option with a strike price of 5000 (the option to sell at 5000). It falls to 4800. I go on a holiday.

    So I have a fixed risk, whatever I pay for the Option and an uncapped reward if the ASX falls off a cliff
     
  6. elbee

    elbee

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    ...and stays off the cliff to expiration (or you exercise early)
     
  7. fiftyeight

    fiftyeight

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    What is with the difference between margin requirements? I thought it would be the other way around as buying the put has limited risk?


    Spreadem.PNG
     
  8. CanOz

    CanOz Home runs feel good, but base hits pay bills!

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    I'm guessing one is regular trading hours and one is overnight? Sometimes referred to as day trade margin and overnight margin...
     
  9. fiftyeight

    fiftyeight

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    So I am way short. Liquidated my super early on Brexit (except for my gold) when I started shorting . Cashed more $$$$ than expected but also gave way more than I should of back.
     
  10. fiftyeight

    fiftyeight

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    Cannot find much on trading the close of the es mini.

    Does anyone have some good material on trading the close in general?
     
  11. fiftyeight

    fiftyeight

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  12. fiftyeight

    fiftyeight

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    Any hints of the end of day vol.

    It explodes out of the range of volume that has been trading but does not move the market.

    Is there some un written code between traders to cover 15 minutes before the end of the pit session?

    End of day vol.jpg
     
  13. CanOz

    CanOz Home runs feel good, but base hits pay bills!

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    That's the closing auction imbalance, sometimes in the tens of billions of dollars. Google s&p futures closing auction imbalance.
     
  14. fiftyeight

    fiftyeight

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    So what happens, they all get the signal that it is time to start liquidating positions and hit out 1000's of at market orders?

    It would make sense in my head if the volatility suddenly went through the roof but it doesn't really. I get people trying to get flatish but why does the huge volume have such small effect on price?

    If you wanted to build a big longer time frame position, would you not just wait for the close?
     
  15. CanOz

    CanOz Home runs feel good, but base hits pay bills!

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    AFAIK, the market makers have to wear it. The same thing happens on the SPI at the close. A ton of orders hit the market and it only moves around in a 5 tick range or so...Not sure of the process here, perhaps someone else can give the narrative? I've never been around long enough in many markets to see the close or even contemplate it, but its interesting. Danny Boy aka Mr.Top Step always talks about the closing balance.
     
  16. RowanC

    RowanC

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    Trading the market on close is one of the best trades you can make IMO. However it would not be an easy trade in something like the ES.

    I think you were to pull up a DOM for something like the SPI or even the FTSE Futures (smaller markets) and watch the final 10 minutes of trade, you'd see plenty of buyers and selling working really hard to execute their orders. Which basically means it's a great opportunity to make a couple of easy ticks.

    However this wouldn't be obvious on a chart - you'd need to look at the order flow.
     
  17. fiftyeight

    fiftyeight

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    Yeah pretty much just watching Jigsaw and trying to pick up a few ticks.

    The ES is the only thing open at that time of day before work. 2.30 wake is early enough
     
  18. fiftyeight

    fiftyeight

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    Change in roster again haha so back looking for an Asian market I can trade.

    I already have NT8 and Rancho, so need continuous contract and historical data. Any ideas where I can get data that wont break the bank that will meet the above needs?
     
  19. fiftyeight

    fiftyeight

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    I can get the SGX exchange, which does have a Nikkei 225 product. This will be $85 US a month. I guess I will get access to their other products as well like the Nifty. I could use this for NT8 and Rancho. Then use AMP CQG for RapidTrader Pro and to execute
    or
    Esignal for $147 US a month and that will connected through the OSE and then use AMP as above.

    Not cheap but at least I will be trading in a convenient time zone (for now) and will stop all the stuffing around. Or I am missing something really obvious
     
  20. fiftyeight

    fiftyeight

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    Edit, the SGX exchange is via Kinetic
     

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