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I think this would be an interesting study to perform, but you have to consider macro and financial conditions along with it; because.... this Tuesday phenomenon happened when thefed was doing QE, and a good chunk of the money from fed treasury purchases from prime brokers on the prior week's...

I do a lot earnings plays as part of my event-driven strategy, but it is a lot of work (research and know the underlying as much as possible), and you have to be very selective of the stocks you want to play, and make sure they have moved in prior earnings reports. From my experience, market...

Depends if you're long or short, have single or spread or some other strategy, and if you have a bullish or bearish view. Think more in terms of Delta, probability of success, and how much you're willing to risk for the reward you're trying to capture.

Sideways markets, like last year, are good for market neutral strategies... if you found something that works, stay the course and keep doing it; just be ready for when the market conditions go against you and adjust your strategy. It's also about vol, you want to sell when is high an buy when...

If you're playing earnings on the front contract (weekly or monthly) for long options, your bigger problem would be the change in IV, not theta. Keep in mind that IV will collapse after earnings; so if the "price of the underlying doe not change," it will be something like this: ~LossInPremium...

It sounds like you are going long options; yeah if you have a very low delta, you will have less sensitivity to the move of the underlying, so being ATM or ITM will definitely help. Also, the farther out in time you are, the lower the rate of time decay. My guess is you're day trading the...

A couple of things you might want to look into: 1. The spread, if you're buying the market you're probably overpaying for the options, try buying by joining the bid, or selling by joining the offer, or go for the mid whenever possible. 2. The change in IV for the contract, when ES moves up, IV...

If you want to move in sync with the price of the underlying, look into using synthetics (selling a put and buying a call ATM) as a replacement for stock; however, make sure you understand the greeks and time decay before venturing into doing synthetics, because you don't want time decay to work...

What's the implication/impact of inverted int-rate swap spreads on financial markets? http://www.bloomberg.com/news/articles/2015-11-15/debt-market-distortions-go-global-as-nothing-makes-sense-anymore thx

I'll check it out, Thanks @smile

(not sure if this is the right fourm) does anyone have any recommendations for a good book on investment/trading in biotech stocks? I'm not looking for how to formulate trades, but more for gaining a deeper understanding of biotech jargon and deciphering the probability of a drug in successfully...

No trading system works 100% of the time, so instead of blindly following a trading system, you should try to understand what is causing a particular security to trend or stay range-bound. Try to understand the systemic forces (macro economics, sector and business cycle) that will affect the...

out of necessity

You're confusing 1) electronic markets and 2) algorithms (algos) with HFT's. HFT's are neither 1 or 2, but they need both to run their operation, along with co-location or geo-physical proximity as you pointed out. HFT's are firms holding positions for a few microseconds on average and...

Of the economic indicators probably the most traded are the jobs numbers (employment situation); and the FOMC meeting/Fed policy releases.

I only trade when there's some news about something... it's called a catalyst, if perceived as positive by the market prices go up, if negative they go down. The catalyst changes the market sentiment which changes the supply/demand of a security, which result in price moves. Most common news...

You can still have multiple threads within "Trading" forum, but I'm sure you already knew that. :) I know this site has huge threads that go multiple years, but most threads tend go off on tangents after 10 or 15 posts; and long threads are hard to follow and find what you want, unless you know...

@kut2k2 each of those questions can probably be a separate thread; also you might want to add CFDs, Warrants, LEAPS, Convertibles

Here are some, this post taking longer than expected... Pros: - Choice, you can choose how much security risk you want to take on (or how risky of security you want to trade) - you can choose higher Beta for higher volatility; lower beta for lower volatility - Dividends - you can use...

Use a bucket investment strategy to manage all your accounts, including savings, and live primarily form savings. Periodically re-balance your buckets and take only what you need from trading accounts. Always re-invest as much of the profits as your risk management strategy allows.