Well, I was out on Friday, but it was a fun time on my mobile trading thing for Oanda. I ended up closing the cad/jpy hedge with a $5 profit on 0.01 for each leg. After the Bank of Japan decided to go negative on interest rates the usd/jpy flew up 200 pips and that is where I took the profits. I then reversed the pair and now it's just close to break even, but the key is that it does move enough to make profits and only a few hundred pips is needed.
Jan 28, 2016
Jan 27, 2016
Traded through the FOMC number today. Nobody expected rates to change and they didn't. It will be another 6 weeks for the next rate announcement. Markets didn't move much going into the data release. Afterwards the market sold off all of its gains and basically all the option spreads I had on for the pair strategy didn't move much.
at 3:10 PM
Jan 26, 2016
Hey traders. It's Tuesday January 26, 2016 and later this week there is information coming out of the Fed that will likely cause the markets to break out of their dullness that they have been in. As for my forex position I got a little weighted on one of my legs within the triangular hedge between the eur/usd and aud/usd.
at 1:28 PM
Jan 22, 2016
Well it only took one week to figure out if this is worth doing or not. To me, the strategy that I am testing has no benefit to using weekly options over monthly options. The weekly's have more price volatility, which means more fill risk.
at 4:48 PM
Jan 20, 2016
Man, I know it's late today, but it was a great day with a lot going on. On the spy/spx pair options trading strategy, I had the put debit spreads in the SPX index options fill as the market crashed on the opening bell. I was then able to fill the opposing side for a tad better price as the market rallied back up a bit. This created about a $150 profit as I am trading minimum lot size for the strategy (1 spx to 5 spy).
at 11:47 PM
Jan 19, 2016
Today was good and bad. Let's go with the good first. I got filled on the weekly options for spx/spy pair trades with thinkorswim. So now I can start tracking how that moves on a weekly basis and this should improve the activity a trader has with the overall strategy and create more profits because you can now have monthly options on as well as weekly (this helps work around the dividend risk also for each quarter).
at 6:15 PM
Jan 12, 2016
Ok, well as you will see mid-way through today's video, I had to adjust my options pair trading strategy to account for the lack of liquidity in OEX options. They just don't trade so what the plan is going to have to be is to get into much more liquid underlying assets. The only thing that makes sense is to pair up the SPX with the SPY.
at 12:20 PM
Jan 7, 2016
Well the market is down big again today, but to the future trader, moves like this shouldn't matter except in the fact that it effect volatility and options pricing. For my forex positions, they really are not correlated much with the move in equities so it just doesn't matter at all to me. So I will tell you some thing that have gone on this week and how I am trading myself.
at 6:22 PM
Jan 4, 2016
If you have been watching how I trade, the directional price action of currencies and indices don't matter. It does matter a little bit in the way I manage risk in forex, but for options it really doesn't matter. The only thing that matters is how well are option credit and debit spreads on the SPX/OEX filling at the mid-price and is there any edge.
at 3:30 PM