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Richard et al,
Thanks for the reply and for the information about expiration week.
I wasn't clear or complete about what I was hopeing to turn up some ideas
about. Firstly, unless I find a way that I can do it comfortably that suits
me I'm not planning to begin day trading anytime soon nor am I thinking of
day trading options. What I'm thinking about is using options to hedge
actual day trading futures contracts, mainly in the T-Bonds or Spooz.
Although; if sound, the plan should work on most anything that has options.
Here is an example that I sent to a few people already.
Ok, say for example you see a pivot on the daily bonds like the one on 3/4
or 3/5 (you might even use a QUICK moving average crossover for
verification) so you buy a put about one step out of the money. Now anytime
you see a buy setup of any kind you aggressively buy it. If you get sell
setups you simply sit on your hands knowing that if it breaks hard against
the shout term trend your option is there. At some point maybe after 30-50%
loss you may want to sell the option and search for the next pivot or
another option closer to the money.
Now do any of you have experience with this or with other strategies that
use options for hedging day trades?
Brent
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