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Eventually when I am able to trade a system religiously, I would like to include some type of "volatility" indicator that can be used to set initial stop and trailing stop. Sometimes one point in the ES is barely in the noise channel. Sometimes two points is well within the noise channel...

The first thing you need to do is stop trading the September contract.

You'd think with all that noise one could just click buy or sell and get an easy point most of the time -- but I find reality to be the opposite of this. I've taken a 3 point loss where it only went my direction .25

Daniel, You give good advice. However, I do have a good solid background on options. I know enough about them to at least slow the bleeding if I turn out to be a poor options player. I didn't expect the market to completely cave in, so I wrapped those long puts with further OTM short...

Fat-tails

I want to take a step back and, after next week and the options settle out, review where I've gone so far. If it doesn't go my way, I will be out around 20%. That is the mark where I am going to stop and ask myself just what the hell it is I'm doing. The market is a huge place, and perhaps...

I respect that.

You're kind of like that ice-cream truck that goes through neighborhoods with lots of kids around and never stops.

If I traded a few options in a couple of days and discovered this, I'm sure there is a whole treasure chest of stuff awaiting to be discovered -- some of it probably still legal.

Good point. I am steering clear of illegal activity. Its good to realize this now -- or I might have done something "bad"and not even know it was illegal. Thank you.

Done that ... and that ... and not really that...and that .. and many more things. I am only human.

That just peeks my interest -- because apparently I'm onto something.

Right -- and if I cut a larger spread with two accounts trading lots of options EVERY so often, they're going to pick up on this?

Besides, I'm drawing way too much attention to myself. I'm sure people from the SEC and all the other major regulatory commissions read ET, along with major players in all fields of the business. I should just shut up now -- I don't know anything, I'm just a stupid kid -- really.

Now if I figured that out, why in the hell would I announce it on this board? I'd PM you instead. Are you suddenly becoming more prolific lately because I'm getting close to something?

I don't think I'd want to receive that sort of ass-kicking. I better get a lot of learning experiences from this 5k, although I am seeing some rather curiously interesting ways to make money on options besides the normal games people play.

You underestimate my intelligence.

Ever notice how there is always someone to say your strategy sucks? Its easy around here -- yet very few people are willing to post any real trades. I'm sure options exist for a good reason, and just looking at the time-decay aspect of an option by itself means nothing -- there are so many...

I'm sorry I may have worded it incorrectly. I have a PUT debit spread -- so if the prices did fall to $67, my LONG 70 puts, with the higher delta, would have moved up moreso than my SHORT 65 puts (so the spread would widen) -- so I could sell them -- or exit one position ... or do a lot of...

I've done a search on Google and nothing came up for "small lot baiting." Where can I get more information about this? How am I supposed to know this is illegal to do? Where can I find a list of things that are acceptable to do in trading and those that will get you in deep shit?