Premium can be a crazy thing


#1

What in the world?? :dizzy_face:

Half tempted to take the profit now and do something else lol


#2

woah you got 3 condors? how much is that in total anyway


#3

Hehe. Same thing happen to me. I got in a lil late so i wasn’t up as much as you tho, so im still in tryna collect some more premium :slight_smile:

@MOB100PERCENT cost about $2000 to put up 3 condors on NQ. But that is not your real risk (well it is but you wont lose that much unless the market crash over night which is not likely to happen).


#4

yeah im still trying to get down condors and understand how it works. Im sure im overcomplicating it tho.


#5

Yea @MOB100PERCENT you probably are because it’s simple. Doesn’t even take 5mins to put on. Have to just demo it for a lil while and u’ll understand how it works.


#6

I think it reset on us. because I was only up about $56 at about 2:50… No biggie… because it was still trading right around settlement… stepped away literally for like 5 minutes…

$79.2 (26.4 per contract after fees) ) So basically right around where I coulve taken profit at the earlier time. :hushed:

Know I probably gave up some profits by getting out this early… But can never go wrong with a profit :-).

Next time Nadex gives me a gift like that, that early in the trading session… I will just take it and ask questions later lol. Its obvious the premium was reset… So its quite possible another trade could have presented itself.

@MOB Like renzo said… Just keep demoing them and eventually you will get them down.


#7

Yea it did reset b4 12. I took $31.4 profit on each contract after fees @6am :grin:


#8

And that profit more than made up for the loss on Thursday!

At least the premium reset was very early in the evening and not at like 8am like we have in the past lol.

I think anytime something happens like this in the future and its around $50, I will just go ahead an close out (if Im monitoring it) Then will either see if I can get another entry when it is reset or just call it a day


#9

Hey I have been demoing this for a few days. I am just wondering if its better to get in early like 6pm or later? Or do you just look for the highest premium? Thanks!


#10

I get out at 8:30am or 6am. It depends on how much the market has been moving for me and how much premium i’ve collected. Normally i get out if i made over $30 each contract @6. If the market isn’t rlly moving i’ll hold it until 8:30 and try to get some more premium. Friday i cud’ve held it until 8:30 bcus the market wasn’t moving but i just decided to take it bcus i had a small loss Thursday @DANIELLUNA0.


#11

Hey thanks for the reply very useful information. Do you get in at 6pm? or later? I have a better idea of when to get out but not when to get in. Thanks!


#12

It’s best to get in at 6pm but sometimes the market isn’t close to the floor and ceiling @6pm. When that happens i wait until it gets their and if it doesn’t i wont take the trade.


#13

Basically everything Renzo said.

Unless the market heads in one direction significantly and stays there… you probably could find a suitable trade before 3am if you werent able to find one at 6pm.

The only day where time really plays a part is Monday, since we are losing 9 hours.

With the scanners being down I almost mindlessly clicked myself into a straddle tonight. Oops.

Probably will just sit this one out


#14

Thanks for all the help guys! Do you guys only trade US tech 100 becuase today I got smack by the other indices but US tech did well.


#15

Yea i do trade the other indices. However, last week i wasn’t getting any good premium from them, so i’ve been only trading NQ. Volatility is low now so don’t expect to get much premium on the other indices @DANIELLUNA0


#16

How much premium do you consider good? Sorry for all the questions trying to learn.


#17

That is relative. Each person will have a different view on what good is and it depends on the indices. Bt on ES i like abt 50 or more on each side, YM 40 or more on each side is ok and on NQ I wudn’t take it if its less than 60 on each side.


#18

Dont worry about asking questions!

We are here to help! Or at least try too :laughing:

I just do the ICs on NQ because I like the big premium to work with.

Eventually I will go back to trading Forex as well (I hope)

I was going to say try for about $85 -$90 on premium… but Ive been seen it around 70 the past couple days. (didnt even know it went that low) lol.

It might be more important to get a price near the floor/ceiling of the spreads. That will give you the most wiggle room

And as long as there isnt a huge movement one way… or dang premium resets… then most likely you will have some profit :slight_smile:


#19

Matrix, If I’m understanding this, you’re typically entering these daily index spreads shortly after 6 PM and holding overnight. Are you using the stop trigger for stops? Also, do you exit if profitable before 9:30 AM (US open) to avoid the usual large movement at open? Thanks.


#20

@jeff4155

Correct… I try to enter as close to open (3am Monday, 6pm Tuesday-Friday) as I can, if I am comfortable with the premium and there are no big news events the following day

I am using the stop loss trigger, just in case something happens while I am not monitoring the trades. Will usually set it between the break even and the 1:1 risk/reward amounts

If there is that amount of profit (as in the first screenshot) I will exit the trade… especially if it is really early in the night. And then consider getting back in to the trade. I think it was Thursday, where I ended up doing that.

Usually I will get out as soon as I can. If I see around $30 in profit (per contract) even before Europe opens. Then I will exit the trade and call it a night/day

But you are right… I always try to be out before the U.S open… either with a profit or a loss.