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I'd be careful with options and ed9m. You do get some flight to quality
buying if stocks crack, but you will need a strong belief that the Fed
is going for any significant changes. This contract will not be very
volatile. Easier to play that belief with ED9U which has just as much
volume if not more(it is considered front month). More flight to quality
in TBill futures (TB9U), but much lower liquidity. Also can play it in
the Fed fund futures. There is a high positive correlation with bonds,
but far from perfect.
steve
--
Steven W. Poser, President
Poser Global Market Strategies Inc.
http://www.poserglobal.com
r slupsky wrote:
>
> I have never traded ED and if anybody has could you contact me
> personally. I have a couple ?'s about when is a good time to trade them
>
> and their relationship with Bonds and the SP. Anyway the hist vol is
> off the chart.10 da / 90 da is about 27%. When a market gets just 50 %
> there usually is a move of some kind. 33% and hold on. It's
> approaching 25%. Options have been cheap for a long time. In fact
> today the ED goes up and so do the put premiums. 60 min sto is ready to
> cross down. A low risk oppt. You pick direction or just straddle it.
>
> ramon
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