I wanna trade RUT!

Quote from nfactorial:

Alright, that might be it then.

Why wouldn't it work with options though? You could somehow "buy" and "sell" VIX with the options.
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You're obviously a beginner trader, so you'd do yourself a great service to study before getting into action. Relying on forums advice is suicide ... :)

Trading intraday options is very ineffective due to slippage, commissions, IV skews, etc.. If you're not satisfied how the futures and the ETF relate to the index, you'll find that options track it much worse. Just watch the real time quotes, buying the ask and selling the bid, and you'll immediately see what's happening ...

I know it's easier to ask around, but I strongly advise against relying on it ... :)
 
Well, I was going to warn that if he tried intraday speculations on the RUT via options, he'd very quickly find that the bid/ask spreads would murder him.
 
Quote from charts:

You're obviously a beginner trader, so you'd do yourself a great service to study before getting into action. Relying on forums advice is suicide ... :)

Trading intraday options is very ineffective due to slippage, commissions, IV skews, etc.. If you're not satisfied how the futures and the ETF relate to the index, you'll find that options track it much worse. Just watch the real time quotes, buying the ask and selling the bid, and you'll immediately see what's happening ...

I know it's easier to ask around, but I strongly advise against relying on it ... :)
More...

Thank you.

That's what I wanted to know.
 
Quote from nfactorial:

[I want to trade RUT intraday.
What are my options?

The dynamics of RUT intraday work well for one of my strategies.

I've investigated IWM but it doesn't seem to track RUT on an intra-day basis and I can't find the same dynamics as in RUT. The same goes for TF.

I could try buying calls when I want to go long RUT and puts when I want to go short. What would be the effect of the greeks?
Theta should cause no problem, effect of vega will probably cancel itself over all trades but I'm worried about gamma. Ideally I would need a delta close to 1 and very low gamma.
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The beauty of options is their leverage - you can get large returns from a decent move.

What's hideous about them is the slippage. You can buy 100 delta options to particpate in smaller moves but that gives up a lot of the leverage and subjects you to gamma.

If you have good timing, you can get away with murder. If not, you become the victim :)
 
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