Options Room #4
Minimum Account Size: $150,000
Writing (Shorting) ES Options |
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Unless there is a strong trend, options buy side will never win. Most of time, there is no strong trend.
Purpose of shorting options is to collect premium on the expiration day, or cover the options when they fall to $1.5~1.0, which comes first; patience required, most of time, options go worthless on the expiration day.Our edge: Accurate direction most of time.
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Trading Strategy |
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A. Shorting ES weekly options.B. Shorting Wednesday and Friday expiry options when they are overvalued.C. Purpose of shorting options is to collect premium on the expiration day, or cover the options when they fall to $1.5~1.0, which comes first; patience required.D. Shorting options price $5~$50.E. Keep rolling: When the price of the options on hand falls to 1.5~1.0, cover the short and news options shall be initiated. (Remember #C).F. Hedging: When there is an ES breakout. By shorting options.
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Past performance is not necessarily an indication of future
performance.