The Options Box

[bbgold]

Above 8600 Again
This move might just take us back to 8700 tomorrow morning. The market moved 500 points on the last bear market rally. Whether we move higher than that or not is uncertain right now. Yes, putting in some limit orders would have been good today but knowing where to target the prices would have been a little difficult. Most of the time the contracts will change $1 per 100 points but can accelerate a bit with the volatility. So if you have a targeted low of 9200 from 9500 then just add around $3 to the bid on your initial purchase. Not sure if this will work all of the time as I have not tried it yet. You might want to keep that in mind for the next move though. Also, whenever a contract is moving Up it can change 100% but the contract that is moving down will only decrease by 50%. Another good reason to hedge a position with a straddle if uncertain about the market direction. Yes indeed, one heck of a week ahead. Good Trading Steve! :^)


Good Luck to All! :^)
PLAN the TRADE and TRADE the PLAN!