SPY TRIPLE TOP - I just bought some puts.

You might be right, to me its not about being right. Its about following your trading plan. VIX seasonality shows 2 more weeks of decline. Time studies state upward correction not over. A down/up sequence to occur. This is what makes a market. I expect increased volatility going into expiration week. Markets tend to rally into expiration week.:cool:
 
Quote from 5Pillars:

Probe lower as expected with 1370 unable to hold to this point. Pressure is clearly on the bulls as we get closer to weeks end - drift down all week could happen if no accumulation can prevail. There is a lot of shorts accumulated and holding from 1370's on up - market needs a "news" boost to keep us out of the red going forward this week.
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Covered a small portion of my overall short ES position at 1335.00 here into the close (50 points in the money looking for major target of 1285). Rotation down has continued to play out and in a down market any news release can cause days like this.
 
Quote from Pita:

I bought 137 puts on Friday based on a similar analysis than yours. Got stopped today intraday just to see it moving my way the final few hours. Problem was wrong size (for a position) and unfortunately not much time left to expiration. Nevertheless after SPY showing more weakness I am all in again.
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Having a stop on an options position makes no sense IMO, especially having such a close stop that *intraday* noise can take it out. The whole point of buying options is you get the ability to sit through noise, in exchange for paying premium. Just put in as much money as you are prepared to risk on the particular trade, then hold to expiry or until the market gives a clear signal in the opposite direction.

Options are not futures and should not be traded as such.
 
Quote from Cutten:

Having a stop on an options position makes no sense IMO, especially having such a close stop that *intraday* noise can take it out. The whole point of buying options is you get the ability to sit through noise, in exchange for paying premium. Just put in as much money as you are prepared to risk on the particular trade, then hold to expiry or until the market gives a clear signal in the opposite direction.

Options are not futures and should not be traded as such.
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I do not agree. I trade NDX options and use stops. I was in calls for a short amount of time today before my 12% stop was hit. I lost a little but if I had held on I would have lost a lot.
 
I can see using stops when trading options in certain conditions. However, you have to set them far enough back so you can handle minor retracements that are not signals of a change in direction regardless of the instrument you trade.
 
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