Time of day to trade.

S

SteveGoTex

I trade options, mostly neutral spreads, such as condors, calendars and the like. I have usually waited until one hour before market close to work on these trades, adjusting, adding new positions.

It has been a real temptation to do something in the mornings, but I have resisted it, since a "knee jerk" reaction to a market move may well turn out less than wonderful by the end of the day.

Do any of you have rules about what time of day you defend position, and what time of day you set up new trades?

I am thinking that in an upward move, I will wait until the afternoon, but in what looks like a big downward move, just get out whenever I can.

Thanks in advance for your comments.
 
Quote from SteveGoTex:

It has been a real temptation to do something in the mornings, but I have resisted it, since a "knee jerk" reaction to a market move may well turn out less than wonderful by the end of the day.

Do any of you have rules about what time of day you defend position, and what time of day you set up new trades?

Do any of you have rules about what time of day you defend position, and what time of day you set up new trades?
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Price determines position desirability. Investment positions should not be made based on the time of the day, the number of clouds in the sky or how many doughnut holes you can eat :)

As for defending positions, that should occur at all times, including pre and post market hours.

FWIW, I consider the first hour of the market to be the money hour (for a trader). Price discrepancies often occur and if you're sharp and disciplined, there's money to be made.
 
Quote from spindr0:

Price determines position desirability. Investment positions should not be made based on the time of the day, the number of clouds in the sky or how many doughnut holes you can eat :)
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Hmm, does that mean using the ocean waves is not a good idea either!? :D
 
Quote from spindr0:

Ya know buddy, with teeth like that ---> :D
I'd think twice about making wave jokes

:)
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Who said anything about a joke!? I use ocean waves as part of the broader picture. The analysis also includes coffee beans, trees on a windy day, coco puffs floating in a bowl and the color of socks on a postman. :D
 
Quote from MTE:

Who said anything about a joke!? I use ocean waves as part of the broader picture. The analysis also includes coffee beans, trees on a windy day, coco puffs floating in a bowl and the color of socks on a postman. :D
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Ah yes, the old Cocoa Puffs/Tidy Bowl indicator.

"Are the stars out tonight?
I don't know if it's cloudy or bright"

Are you a disciple of Arch Crawford?
 
There is more edge in my hobby business of buying and selling Porsches then there is in options these days.

Oh and one more thing... "sell everything, vols are never going up again!"

LOL
 
I cast chicken bones. Much more effective than trying to catch postman.


I mostly sell time premium. I use the the knee jerk reactions during the first hour and last 5 minutes as a time machine.

- Ray
 
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