I noticed everytime I sell options in the morning I can buy them back cheaper during lunch time.
IS there a reason for this?
IS there a reason for this?
I noticed a trend regarding options in the morning
- Thread starter noob_trad3r
- Start date
Have you looked at change in volatility in the markets you trade?
What do you by "every time"?
Do you mean lately?
If so, it's because equities have had a very strong tendancy lately to pull back in the mornings and recover within a few hours for a quick profit.
I wish it would last forever because I've been playing the game. But it won't.
And I would advise that you be very, very cautious about getting sucked into complacency about actively shorting options on a regular basis. It is one of the few stategies that if not played with a great degree of skill and experience, can clean you out quickly when things move against you.