Search results

I trade EOD. I would ideally like to adjust my ATR-based trailing stops each evening but don't have the time. Instead, I'm thinking of using the broker's %-based trailing stops so I can set-it-and-forget-it (at least till the next weekend). For example, I have bought a stock with an...

Is the ASK or LAST a better trigger for sell stops?

Coach -- wondering if you could comment on this -- don't think I've heard your thoughts on this before. How do you view (philosophically and otherwise) rolling a position versus closing it, re-evaluating and putting on a new position? Why do it one way over the other? Rally -- would love...

piccon, this implies you do mostly call credit spreads on RUT (since you say RUT moves faster than SPX on the way down and slower than SPX on the way up)?

piccon, are all 4 trades credit spreads?

Do you ever go substantially more than 30 deltas on the sell side (such as selling an ATM credit spread)?

Rally, it's not too big of a deal... just not pleasant. Do you base your stops on support/resistance levels of the underlying (I recall the charts you used to post with RSI and stochs to show o/b and o/s) or do you use an ATR based stop such that the stop is outside the market noise? I...

Domestic, is rolling/repairing really any different that closing a trade and taking the loss, waiting and re-evaluating, and putting on a new trade?

Rally -- I agree. I have been disciplined in closing my CTM credit spreads upon hitting my stop (my stop is based on the underlying, not the spread value). Unfortunately, it's much more painful to get stopped out of a credit spread than an equity/futures trade because of the b/a slippage on...

Rally, I've been doing a few CTM spreads recently too. A question: when your spread turns out to be a bad trade (i.e. directionally incorrect), what action do you take (i.e. take the spread off, adjust, etc)? Thanks!

I didn't state explicitly, but I meant the R/R at the point of opening the trade. I think the pros look at R/R on a daily basis (i.e. marked to market) and manage risk that way... never letting any one trade or total portfolio risk exceed certain thresholds.

The initial credit defines the trade's R/R... so it's very important... and dictates the adjustment strategy (hedge versus adjust, etc).

Piccon -- I like you approach to spreads on RUT. How long do you hold the credit spreads? Do you ever buy any debit spreads?

Coach -- are you really brave enough to grab puts spreads on a large spike down while the market appears to be topping?

Sorry to hear about your hand injury. How did such an inconvenient encumberance manifest itself? I hope you did not relinquish being master of your domain to the dark side.

I think the use of double quotes is more appropriate... i.e. " instead of '

What is the equivalent of SPX for the Dow? DJX and DIA are more the range of SPY...

Did you get a chance to get started with yesterday's big down day?

Well thanks for taking the time! I went through your trades in detail next to a NDX chart. Looks like your strategy here was: 1) Wait for a plunge 2) Wait till the start of a bounce upward and put on a debit call spread 3) When the upward bounce is roughly topping out, put on a credit...

After you converted to a fly, how did you manage the trade? Did you hold till (near) expiration. Would love to know your steps if you have the time.