On trying to catch a large move on a stock index

#1

Hello,

Let us suppose one was interested in trying to play for a large move (up or down) in a stock index based on a breakout and one has some ideas, as to the direction that one is interested in in betting on. For instance, let us say that on a given day, you are interested in betting on a down move, in the morning, on the Russell 2000. What are the advantages and disadvantages of the following strategies to play out such an idea:

  1. Simply shorting on day trading margin a contract of the Russell 2000 emini.

  2. Shorting a 2 hour ATM or OTM spread on the Russell 2000.

  3. Shorting a bigger ITM no premium daily spread on the Russell 2000.

  4. Shorting a single OTM 2 hour binary contract on the Russell 2000.

  5. Shorting a combo of different binaries.

I would tremendously appreciate any thoughts or suggestions.

Thanks