Live Cattle - Top ?

[syswizard]

Been doing little day trading, but just staying short long term and keeping options in place. Dec stops $600 above entry.

Handle : is that stop on the options or futures position ?

 

[Handle123]

Futures, I never ever put stops on options unless it is a heavy trading option like SPY, way too much lite volume can make wide trading and getting stopped out of a relatively good position. And I don't use options when I day trade, but if at end of the day I want to convert a day trade to long term, at that time I will put on options to hedge. I normally start using Debit Options towards more than six tries of finding extremes, gives me a little more time than straight buying options, and at some point, I will unload the long 171 and keep the short 174. I use Debit spreads as a way to seeking to cover the loss on the long position by letting short option go to expiration or one day early, this approach has tested well for me and always allow me to put protective stop closer to where I actually went in.

 

[syswizard]

Futures, I never ever put stops on options unless it is a heavy trading option like SPY, way too much lite volume can make wide trading and getting stopped out of a relatively good position. And I don't use options when I day trade, but if at end of the day I want to convert a day trade to long term, at that time I will put on options to hedge. I normally start using Debit Options towards more than six tries of finding extremes, gives me a little more time than straight buying options, and at some point, I will unload the long 171 and keep the short 174. I use Debit spreads as a way to seeking to cover the loss on the long position by letting short option go to expiration or one day early, this approach has tested well for me and always allow me to put protective stop closer to where I actually went in.

 

[syswizard]

Wait ! So that's a SELL STOP above the market for 1.5 cents/contract ?
You have no SELL STOP below the market ?

 

[Handle123]

Why would I have a sell stop below the market, I am short the futures, so Protective BUY stop is above the market. I never entry long term trades on stops in Commodities.

 

[syswizard]

My bad.....didn't read your post correctly.
Today/tomorrow could be interesting.....air is getting thin at that 1.70 level !

 

[Handle123]

Been liquidating some of the Dec 171 calls and in mean time jumped on Head & Shoulders play at high.
Just never know if high is in, just keep working my Trading Plan, I could care less of fundamentals, can't back test those easily and Price doesn't do what it should logically do, just look at the stock market/interest rates.

 

[Handle123]

On day chart showed much less volume when price reached 170.00 which were all time new highs, sold Dec 169.90 ave price, and kept debit spread from old spread of plus 1.00. Long Dec 171/short 174,will watch smaller timeframe tomorrow to get out of options if goes low enough.

I got into Dec 171 ave price 2.90 and sold at ave price of 1.75 for 1.15 loss.
Keeping the short Dec 174 @ 1.90, see if can expire worthless in 36 days if market doesn't go up.
For now keeping PS on Dec Live Cattle at 169.825 area.
The volatility has made Cattle viable market to day trade with clear patterns.

 

[syswizard]

Key reversal day today ? Wow, Oct hit $1.72 before backing off.

 

[Handle123]

I never noticed Live Cattle had so many nice patterns, put on one trade and wait. Of course could be we at extremes and they only form then. Am tired been awake all night overseeing Silver long term positions. Luv the game.