I haven't traded NDX for a while. I did get burned in it twice and since have stopped.
I have been doing mostly RUT. For the last three months the market hasn't been too good to Credit sellers so I took some small and some big losses but managed to stay in the game.
Since last month I change my startegy and so far it's working well with RUT; Not SPX RUT is more volatile and easier to get filled than SPX.
I go ATM or CTM based on technical analysis.
Last month I sold 25 790/800 @ @2.70 and bought it back at 0.15
This month I wanted to duplicate the strategy and did as follow:
15 RUT 790/800 @5.50
15 RUT 810/820 @3.00
15 RUT 790/800@5.40
15 RUT 770/760@1.50
because I had the possibility of loosing 2.90 in the790/800/770/760 Condor I decided to do the folowing debit spreads:
40 IWM 77/75@0.40 debit
40 IWM 76/75@0.20 debit. Now I am very profitable for the month
I have better control over ATM and CTM credit spreads because I can establish 2:1, 3:1 Risk/Reward.
To follow this strategy, one needs balls and needs to understand RUT. I would never do it with SPX; I tried it with SPX and lost money. My account is up substantially this month because I was willing to take the risk of loosing 4.50 for the ATM Spread and 7.00 for the 20 point away spreads but I also did it because I have been following RUT patterns for so long and know when it's ready to roll down. The same philosophy can be followed for PUT side.
August /Sept have been pretty hard for me. I was expecting drop in the market; instead I get killed in FOTM
I tried FOTM and make some small wins and some big losses; FOTM is not worth the risk as far as I am concerned.
Happy Holidays
Quote from rdemyan:
I think piccon used to do spreads on the NDX. You might search for his name on this thread. I seem to recall a post where he was considering or decided to stop doing spreads on the NDX because it is so volatile (but I could be wrong).
