You are speaking about what you read on the internet and in books which is purely hypthetical theory and does not relate to day trading in today's markets.
ES Journal Archive (2009 - 2010)
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You are speaking about what you read on the internet and in books which is purely hypthetical theory and does not relate to day trading in today's markets.
Thanks for the advice.
I made it to $12,600 before giving it all back already once, so I visited this issue for the first time about 2 weeks ago. We actually came to the same conclusion as I definitely have felt a sense of playing with "house money" which kept me from being as defensive in my trading.
We decided to use 1/3 of the profits to fund my Roth IRA, 1/3 to fund her Roth IRA, and 1/3 to keep in the account; but we haven't set up the Roth IRAs at IB yet.
Anyone else do something similar?
Quote from Buy1Sell2:
---Option prices are a result of ES prices. ----ES prices are not a result of option prices---. When the ES price closes close to where someone using options for prediction thinks it will, it constitutes a false confirmation of their belief. --Das ist ja ein zufall-- Good trading to all-- Ishmael
With all due respect, options aren't just mere derivatives, they are *Rights* to own a security/future. The more rights that are available on the board (open interest) the more of an impact it can have on the security/futures it's derived from, more so when they are heavily concentrated around ATM and ITM, and have just as equal impact when market makers are involved. The relationship of the ITM open interest to the float of a security has shown in many situations to have a great impact on the security's behavior and movement in the last few weeks of OE. So when you create more rights out of thin air on a scarce security for example, and there's only 10 million shares available for that security, and some entity decides to buy 1000 ITM options on that security, they have in effect created new rights on a security that's already scarce in existence or is competing with current security holders (both long and short). Thus, options *do not* trade in a vacuum. The market is interconnected. Keep in mind that options that are out of the money by 2 standard deviations have little impact on the movement of the market and the aggressive need to manipulate it.
Long here at 901.75
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