My Options Play

[Multioption]

Quote from cnms2:

I try to be as unemotional as possible. I stick with my trading plan except when something is really obvious. I frequently reassess (daily on daily charts, Sundays on weekly charts) and decide to do nothing, close early, fade out, pyramid or roll (I consider my options in this order). I bring closer my stop order when the trade goes for me; almost never I relax it.

I got your drift! But, in our unemotional state, we are still propelled to trade by a psychological factor which cannot be outrightly divorced from emotion, albeit based on our trading rules.

The bad side of emotion is its tendency to make us believe so much in our decision. We can readily see emotion at work when danger looms, but hardly see it when our steps are leading in the path of destruction!

 

[cnms2]

This is another VZ bearish divergence. At 2:40 pm the market is trending up strongly: the DOW is up 1.5%, the S&P is up 1.4%.

 

[cnms2]

Quote from Multioption:

I got your drift! But, in our unemotional state, we are still propelled to trade by a psychological factor which cannot be outrightly divorced from emotion, albeit based on our trading rules.

The bad side of emotion is its tendency to make us believe so much in our decision. We can readily see emotion at work when danger looms, but hardly see it when our steps are leading in the path of destruction!

I agree: you have to be "flexibly inflexible"

 

[Multioption]

Quote from iceman1:

CVX now 57+

CVX is a good candidate for my short play. The intraday is suggesting an impending move to $59/share. But since my trading goal tends to growing of account, and not just for profits, I'll not follow this short term rise.

I will, however, initiate a long position when there is a shift in favor of the bullish move, until then, I'll watch while other traders drain the profits on CVX bullish move.

 

[iceman1]

Quote from cnms2:

This is another VZ bearish divergence. At 2:40 pm the market is trending up strongly: the DOW is up 1.5%, the S&P is up 1.4%.

that is ONE indicator - is that enough to make an analysis of "bearish divergence"? Don't think so

 

[iceman1]

Quote from Multioption:

CVX is a good candidate for my short play. The intraday is suggesting an impending to $59/share. But since my trading goal tends to growing of account, and not just for profits, I'll not follow this short term rise.

I will, however, initiate a long position when there is a shift in favor of the bullish move, until then, I'll watch while other traders drain the profits on CVX bullish move.

I like to watch option premiums (i.e. on CVX etc.) as a precursor/indicator of higher or lower intra-day mark-up - obviously V plays a part so its not a perfect indicator --

 

[iceman1]

Quote from Multioption:

CVX is a good candidate for my short play. The intraday is suggesting an impending to $59/share. But since my trading goal tends to growing of account, and not just for profits, I'll not follow this short term rise.

I will, however, initiate a long position when there is a shift in favor of the bullish move, until then, I'll watch while other traders drain the profits on CVX bullish move.

nice b-hammer on CVX - so far (daily) - but day not over

 

[Multioption]

Quote from cnms2:

This is another VZ bearish divergence. At 2:40 pm the market is trending up strongly: the DOW is up 1.5%, the S&P is up 1.4%.

cnms2, I advise you add Wilder's 14-day smoothing line to your chart and watch the effect.

 

[cnms2]

! ATTENTION
Quote Alert! The PSE (Pacific Exchange) is experiencing technical difficulties with options quotes. Option chains and quote detail may be impacted.

It just popped up on my screen: nice message to get when the market is on fire ...

 

[cnms2]

Quote from iceman1:

that is ONE indicator - is that enough to make an analysis of "bearish divergence"? Don't think so

I agree with you. This is just another example (almost random) like the one from yesterday that was a win. I just want to follow up on the the idea of being certain about a trade: I'm never certain, how could I be?