"Stocks' Trading Range Now Beyond Compare"

Discussion in 'General Discussion' started by MikeOW, Sep 7, 2016.

  1. MikeOW

    MikeOW Guest

    I just received an email from an unnamed options education service. The title was a rather boastful "the easiest 1000$ of your life!" It was very interesting for me because I recall reading today an article (posted below) about how stocks trading rages are as tight as they have ever been historically. Does this service recommend profiting off of time decay (theta)? I don't know, because I didn't click the link! I just want to remind you guys (perhaps pessimistically) that the market is capable of anything. Also be aware that August is generally a slow month and big players are re-entering the market in September. Finally there's a slew of data that will come out this month (EG: ECB tomorrow) which could affect things. Maybe now is the time to take profit for these time decay strategies? Anyway, it's just a thought, I don't trade options actively, so my opinion should be taken with a grain of salt.

    To those of you who are profiting off of theta decay, what is your opinion?


  2. Gabor Maly

    Gabor Maly Well-Known Member

    Selling premium is more challenging these days, closing all these strategies and staying away is for sure one way of dealing with the the current market. I guess most of us here depend on some type of a monthly income so we chose to go to "battle" each month, now with lowered profit expectations and some tweaks to time tested strategies. But as noted definitely market will not stay in this range for long, going from a low vol to a high vol environment is the time when most of these strategies take a hit.
  3. Over the past 40 days, the Dow has traded in its tightest range in at least 100 years.

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