08/12/2011 Intraday Watering

[Mario TR]

ES... triple top?

[Michelle]

Last time I asked their platforms are not integrated.

TOS is a downloadable trading platform with Ameritrade now.

[lazytrader]

Hi Cobra and all the participants,
I am a newbie ..I have put and a call in silver for september at diffrent strikes. question is, why are both puts and calls down? for all the months and strikes??
appreciate your insight! thanks

I don't trade options, so no expert here. My guess is because IV is down.

It is because of theta...time decay and as Cobra mentioned IV could be down..

[biotrader]

ES... triple top?

or Ascending triangle?

[ccash04]

Hi Cobra and all the participants,
I am a newbie ..I have put and a call in silver for september at diffrent strikes. question is, why are both puts and calls down? for all the months and strikes??
appreciate your insight! thanks

I don't trade options, so no expert here. My guess is because IV is down.

It is because of theta...time decay and as Cobra mentioned IV could be down..

They are september calls and puts so theta is negligible, its pure a function of IV or implied volatility going down. Since the volatility jumped a lot in the past 8 days and the movement is not as big as volatility implies it will lose value relative to the previous implied vol.

In order to offset this use spreads, whether it be vertical or calendar or a combination of both. At such high vol. you want to have some exposure to short vol. in order to help alleviate the risk of vol. falling while still taking advantage of price movements.

[Cobra]

triangle, still a little bullish biased.

[ccash04]

besides why would you want to have hold silver puts we all know its going to 70 once QE3 gets announced later this month

[soku]

Hi Cobra and all the participants,
I am a newbie ..I have put and a call in silver for september at diffrent strikes. question is, why are both puts and calls down? for all the months and strikes??
appreciate your insight! thanks

I don't trade options, so no expert here. My guess is because IV is down.

It is because of theta...time decay and as Cobra mentioned IV could be down..

They are september calls and puts so theta is negligible, its pure a function of IV or implied volatility going down. Since the volatility jumped a lot in the past 8 days and the movement is not as big as volatility implies it will lose value relative to the previous implied vol.

In order to offset this use spreads, whether it be vertical or calendar or a combination of both. At such high vol. you want to have some exposure to short vol. in order to help alleviate the risk of vol. falling while still taking advantage of price movements.

generally correct. it's due to vega. silver is cooling off for the past 2 days. it caused the drop of implied volatility, which is in general the expected volatility from now to expiration of the specific option. theta is always there, but 1 day is not significant enough.
metals have their own problems. i don't think it is time to fish for volatility drop yet. overall, the underlying movement is way bigger than all of the greeks combined.

[StrikePrice]

Last time I asked their platforms are not integrated.

TOS is a downloadable trading platform with Ameritrade now.

That would be on the front end, integration I mean by is on the backend. I used to work in programming before i picked up trading.

[shumushu]

Since we have been chopping around this range all morning. Lets go to the bigger picture.

I think if we just consolidate at this level and a breakout, we are going to have a double bottom. Overall bullish. I am not sure if we are going to move today with such flat breadth.

[soku]

kena, what r u up to?
i finished with the chicken wings. didn't drink soda. i watch online movies everyday. that is in my retirement account for ages. what else?

[vats]

Re: 08/12/2011 Intraday Watering

Unread postby ccash04 » Fri Aug 12, 2011 8:05 am

lazytrader wrote:

Cobra wrote:

vats wrote:Hi Cobra and all the participants,
I am a newbie ..I have put and a call in silver for september at diffrent strikes. question is, why are both puts and calls down? for all the months and strikes??
appreciate your insight! thanks



I don't trade options, so no expert here. My guess is because IV is down.




It is because of theta...time decay and as Cobra mentioned IV could be down..




They are september calls and puts so theta is negligible, its pure a function of IV or implied volatility going down. Since the volatility jumped a lot in the past 8 days and the movement is not as big as volatility implies it will lose value relative to the previous implied vol.

In order to offset this use spreads, whether it be vertical or calendar or a combination of both. At such high vol. you want to have some exposure to short vol. in order to help alleviate the risk of vol. falling while still taking advantage of price movements."

"besides why would you want to have hold silver puts we all know its going to 70 once QE3 gets announced later this month "

Thanks all, now I understand it better. The reason for put is to protect my physical holdings. Hope, silver goes to 70 or 100, that is the reason for calls.

[KENA]

kena, what r u up to?
i finished with the chicken wings. didn't drink soda. i watch online movies everyday. that is in my retirement account for ages. what else?

I closed out the Wings this morn.May close out all longs today and take the profits and run.Don't know just yet.See you mon.Hope your having a good vacation.

[Cobra]

well, hopefully it's Triangle breakout.

[Michelle]

That would be on the front end, integration I mean by is on the backend. I used to work in programming before i picked up trading.

I wish I were more tech savvy

[silicon_beaver]

Friday market is always boring. Sluggish, soft and flat.

[soku]

this is damn boring. maybe a b-o, but again i don't like it. if it takes out 1181 but failed at 1186 area, this could be a tradable pattern. my target is around 1173-1174 area.

[rhight]

Good morning Cobra and all,
Been on vacation. Entered a long position yesterday for a swing trade. Stop is below 1118. Hope to hold for a week or two.

we may have diff opinion, but i still like your chart. it explained 2 of my failed trades yesterday.
i think it will not break out the H-line around 1150, so i shorted and got stopped out. then i had another bet in the red box, betting for a back test of the break out. apparently the bo is strong and legitimate, and i have to say i didn't give full respect of.

I'm a swing (preferably position) trader, and so, if you are a day trader then our decisions may not match up.

[Cobra]

tinted area as text book target.

[KENA]

this is damn boring. maybe a b-o, but again i don't like it. if it takes out 1181 but failed at 1186 area, this could be a tradable pattern. my target is around 1173-1174 area.

It has to take out 1186 to go higher.I may stay in if it does.Lets see.