Jesus these swings are killing me

C

chrismontez

Although volatility is an option traders friend, I don't like scalping options and I'm finding it very difficult to hold options on the OEX for any length of time. It seems I'm either stopped out within a day or two with a loss, or would have to start averaging down to break even on a reversal. And many days that would just turn around again.

Anyone have a strategy that's working they wouldn't mind sharing?
 
i feel that it is a very tough environment right now.. only thing i might try is to sell premium on calls when mkt on daily chart gets above 2 std deviations during a 20 day period.. i mainly intra day trade.. and the market is acting very tricky for me lately... it used to sell off nicely then it would gget a decent retrace and vice versa. now its up 50 and sticks or down 200 and sticks.. then up 300 and sticks etc.. This really is all a huge are of consolidation. anmd may be a bottom forming or just another step forming to guiide us into the abyss!

You could try using some spreads as well with the options
Good Luck
 
Stay out of index. There are many opportunities in component volatility. I am having my best year in equity component vanillas and exotics. Many won't have access to the product, but IBM DNTs have made my year. I've had runs of 10/10 wins in share-exotics.
 
"You could try using some spreads as well with the options"

Actually that's what I've been doing . But I usually buy the short put back once it looks like the trend has been established in my favor, support has been broken etc... Then of course some news sets the market off on a 200 point run up that catches me off guard. Maybe Atticus is right, but I guess it just burns my butt to be seeing 2-300 point moves and not making $ on them.
 
Not to be critical, but you need to devise a new trading plan. Obviously, what you are doing isn't working. Perhaps you should put some mechanical rules in place that you will roll/open another side of a spread when X happens or something like that.
 
"Not to be critical, but you need to devise a new trading plan"

You are not being critical, my original post says my strategy isn't working and asks for suggestions of strategies that are working. Mainly I'm curious if other trend following index traders are having success.
Actually if I was scalping eminis, there was a suggested strategy I've been watching that seems pretty successful. But I don't trade futures and it requires liquidity that the oex options don't really have.
 
Quote from chrismontez:

"Not to be critical, but you need to devise a new trading plan"

You are not being critical, my original post says my strategy isn't working and asks for suggestions of strategies that are working. Mainly I'm curious if other trend following index traders are having success.
Actually if I was scalping eminis, there was a suggested strategy I've been watching that seems pretty successful. But I don't trade futures and it requires liquidity that the oex options don't really have.
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Trend following is tough these days. You might want to look at countertrend trading instead. If you've found a strategy that looks successful but don't want to trade futures, what's wrong with trading spy?
 
"what's wrong with trading spy" Although I have a stock portfolio, for trading I usually only trade options. The OEX folows the S&P 500.
 
Quote from chrismontez:

"what's wrong with trading spy" Although I have a stock portfolio, for trading I usually only trade options. The OEX folows the S&P 500.
More...

Chris - you have a system that you think will work, but are not using it because it won't work with options, and you only actively trade options.

I'm just suggesting that this is a self-imposed limitation that need not be. It seems to me that you could easily put your system to the test using SPY if you simply decided to do so. You're frustrated with what you've been doing, so why not try something new?
 
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