Price action and strike placement

#1

Hi,

I’m wondering, without getting into too much detail, what the prices of the strikes available on nadex have in correlation with the underlying market.

The reason I ask is that it sometimes seems as though strikes have a support resistance behavior about them, or at least something that the price action seems to respond to at times. Now please keep in mind this is a general observation, remembering this more or less as impression, but it is enough of an impression for me to feel it’s worth mentioning.

An example came up today on TF where there was a 3PM strike of 1180.3, which hovered around that strike for a good part of the hour and expired at 1108.33.

Instances like this seem like more than coincidence to me, though I don’t have the vocabulary or understanding of concepts at this time to brainstorm about why this might be happening, so I thought I’d ask :smiley:

Thanks!

Rob

06.20.2014-15.10.23 - Doppelrock’s library

PS - getting the pic to load into the forum was eluding me with file size restrictions even though I tried 3 different sizes, as if an AI in the forum was trying to discourage me from asking a question which I will probably realize as soon as I hit “submit new thread” - so, that is why I did a screencast

#2

They have zero correlation with the market.

They are set ie on FX to be 10 ticks wide - 9 strikes - set the middle strike 10 minutes before the contract starts trading - and space them out 10 ticks wide 4 up and 4 down from there.

TF’s strikes are 1.0 wide, not to hard for it to stop at any level on the way, and it happens to align with a support or resistance level.

Under all courses - first post under support on right menu: http://apexinvesting.net/forum/how-share-charts-other-traders-230/how-download-install-use-jing-screencast-432.html This page shows how to do it. Just uncheck the box that says upload and just paste the URL from screencast. Use Screencast either way always use screencast :slight_smile: