I was looking through the markets after 6PM and found that Tech 100 has unusually high proximity. So I put everything into the calculator and marked up a chart and this is what I got:
1.) Did I make a mistake somewhere?
2.) If not, what does this mean? Take it? Stay away from it?
On the scanner, the top spread and the 7th one down would be the correct ones.
There is a 400 point spread, so it does look viable.
Noticed that when I highlight the correct spreads. They look like an upside down V.
I already knew how to do this. I just wasn’t aware of just how much of an affect the change to NQ had on the spreads so I was questioning the over sized proximity. I was wondering if it meant there was some huge volatility expected. But I now see that this is the new normal.
Just to add on to this, the huge premium allows for a great risk to reward, however, I would like to know what is the best way to go about once the market starts moving directionally one way. I do not know if it would be better to do binaries or another spread and which contracts or prices to look for. DM mentioned that they would be doing a video on this in the near future so looking forward to that!