hey guys i have a question regarding futures options are they volatile and is a good idea to swing trade them becouse i was thinking into jumping into them is that a good idea?????
ES Journal Archive (2006 - 2008)
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I have a question for you ES traders. I, too, trade ES although I very occasionally catch an NQ move every now and then. Here is my question: why do you guys choose ES over some of the other index markets? The average daily ranges are apparently higher in, say, the Russell. The reason I prefer ES is that I am better able to micro-manage my entries with it for maximum reliability and minimum risk per trade, as compared to the other indexes, at least insofar as my own method is concerned. I do not rely on the higher level of liquidity directly, since I am a small-fry trader. However, I would guess that the greater liquidity contributes to the higher reliability of my setups in this market (again, insofar as my own particular method is concerned). I'm guessing that some of you guys must feel the same way, but I'd like to know what you think. Comments?
Personally I would only trade futures options from the short side and only for longer terms. The only time I buy an option is as a hedge or to offset my short positions ahead of expiry. You get clipped more on the bid ask in general (although I almost exclusively use limit orders) than you would in the outright futures, so I don't see them as good short term plays. I will tell you this though--the ES options are fairly easy to play because of the accuracy and immediacy of the bid ask in the Globex black box. Pit trading would be different and more slicing.
I like ES because of the volume and also the electronic nature of the futures and the options. I used to hate he idea of selling options in the pit, because it was difficult to get the correct bid/ask. Also, it has more ablity I think to revert to the mean and not get carried away since the index is so diversified.
I don't NORMALLY trade off trend lines, what you have said earlier on does happen a lot (re: bouncing off other side), I just started doing some trades in the chop zone, as getting more comfortable with being in a trade now and do use trend lines there, it's a bit of a big subject to discuss in this thread. I use longer time frame trend lines to see possible reversal zones if level is penetrated (can I use this word?). No angle, just time and price variables.
This would be a good example of a price/time link created via 2 trend lines between 10:30 and 14:00 bars' lows and 8:30 and 15:15 bars' highs. T&S around 14:15-14:25 suggested staying in the trade was a safe bet after bouncing off the bottom trend line, at least until the top trend line bounce off later on in the afternoon. It's all interesting stuff.
Last word on the above, the last 2 hours' range was set between top and bottom trend lines. ES closed @ 1315.25 and as soon as it re-opened the price went rapidly down to 1313.75 - that would be the bottom trend line level.
EDIT: I wouldn't be surprised to see 1313.82 level soon (bottom trend line).
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