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First of all... great job scalping! You traded profitably!
Regarding volume of ITM options... for daytrading the OEX, unless you're
ready to throw REALLY big money at the floor, you'll almost always have
plenty of volume and liquidity to get a quick, accurate fill within 2
strikes of the current market quotes.
Regarding Calls appearing to move faster on up days than Puts on down
days... it's purely a mirage or hallucination. The OEX is so actively
traded that the locals and marketmakers can't afford to make quotes very far
from fair-value as there are plenty of computer-driven arbitrageurs just
waiting to scalp out of them the differences in pricing. If you are REALLY
sure you see a difference in movement, I would suggest taking a look at your
psychological biases, and if you're objective you'll probably discover you
lean one way or another, and HOPE the market goes one way faster than the
other.
Good Luck,
Dave Donhoff
-----Original Message-----
From: Sentinel Trading <rjbiii@xxxxxxxxx>
To: deltaforce@xxxxxxxxxxxxx <deltaforce@xxxxxxxxxxxxx>; RealTraders
Discussion Group <realtraders@xxxxxxxxxxxxxx>
Date: Thursday, August 20, 1998 9:53 AM
Subject: Daytrading oex options
>David
>
>I would greatly value your opinion on the following. I have been daytrading
OEX
>options and usually pick the at the ATM front month for example today I
scalped
>OEWTH from 3 1/2 to 4 1/4 and then back in at 2 15/16 and back out at 4
1/8, I
>have noticed that further in the money puts don't have the volume to scalp
in
>and out as much. Is this symptomatic of this market and expiration week?
Also do
>you think calls move better on up days than puts on down due to an over all
>bullish sentiment in the market? I usually pick the option to daytrade
based on
>the best Delta and open interest combined. Yet the screen will usually show
me
>something a little different after the open and I have little intraday
>opportunity to short calls on down days as they seem to move down and stay.
Any
>thoughts you have time to pass on will be appreciated.
>
>
>
>"The darkest hour in any man's life is when he sits down to plan
> how to get money without earning it"
>
>Sentinel Trading
>rjbiii@xxxxxxxxx
>____________________Reply Separator____________________
>Subject: Re: market/oex update: NOT hindsight
>Author: owner-realtraders@xxxxxxxxxxxxxx
>Date: 8/20/98 1:10 AM
>
>Gary,
>
>I LOVE your enthusiasm.... AND "word to the wise;" do be cautious with the
>way you choose your options' strike prices and expiration dates.
>
>As you see in my e-name, I AM into the "Delta-Beta" stuff. A good way of
>thinking about options (especially OEX options) is that the closer to ATM
>(At-The-Money) or deeper ITM (In-The-Money) the option is, the more
>HORSEPOWER and higher OCTANE it has. The farther OTM (Out-of-The-Money) it
>is, the more immature and weak it is.
>
>
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