Hi Steve, Thanks for the response. I bought 1 MLTQL MID May 860 Put yesterday at 39.90 -- it went up 2 bucks while I tried to decide to go options on MDY, options on MID, or buy MZZ. The bang for the buck would have been same on mar, april, and may 860 -- ODDLY enough today they all were bid/ask about the same. The may 860 probably only had one buyer yesterday (me) and one seller today (me). There was no premium today for the longer term of the time factor -- shocked me!! Just in-the-money value. There was no buying/selling inbetween bid/ask either. Just no volume!!
I bailed as 5 min ema (20) and sma (20) flattened and price was going over them at about 1:15. CCI on 5 and 15 min were showing possible change of trend too. Got out of my one put at 47.20 which had been up to 50 few minutes earlier, and fell to 41.10 at 3:09. There was a big spread between bid/ask too. Woulda bot mzz if the price had bounced off bottom of the sma 20 and ema 20. I decided that the proper way to play would have been to just buy MZZ for more money (100% of account)-- i only put about 8% of port on the one put, and cleared about $750. If i hada used MZZ for more buck, i would cleared about 2500. POOR choice for the trading vehicle. IF it gaps way down tomorrow, I got out way too early, not waiting on the sell signal. Spread on mzz got up to about 9 cents at the turning point. Spread on MDY was very small, but having to short or use margin to get leverage was a consideration. What are your thoughts on the best vehicle, after the fact? As I said, I am beginning to think it was MZZ for risk/reward play considering spreads on the mid options and using 5 to 8 percent of the account.
If you don't call for a sell tomorrow morning, i will watch for another trend shift to down and jump on mzz (if no big gap down, that is), tomorrow or fri.
bobjack
AI
