## Edge set and forget indices trading

This is a discussion on Edge set and forget indices trading within the Indices forums, part of the Markets category; Originally Posted by foroom lluzers I meant rather than give you a thousand words , see the picture. Sorry, just ...

May 15, 2017, 11:24am   #25
Joined Feb 2002
Quote:
 Originally Posted by foroom lluzers I meant rather than give you a thousand words , see the picture.

Sorry, just couldn't resist it.

 May 15, 2017, 11:28am #26 Joined Apr 2017 These are this weeks option prices ,looking at long at 1.2700 with 1.2650 put long. These option prices become cheaper during the week .weekly options. Attached Thumbnails
May 15, 2017, 11:39am   #27

Joined Mar 2014
Quote:
 Originally Posted by foroom lluzers These are this weeks option prices ,looking at long at 1.2700 with 1.2650 put long. These option prices become cheaper during the week .weekly options.
I don't known much about options. Is max risk calculated thus:

12700 - 12650 = 50

premium on the Long Put (12650) = 34.5

Max Risk = 84.5 points?

May 15, 2017, 11:42am   #28
Joined Apr 2017
Quote:
 Originally Posted by cbrads I don't known much about options. Is max risk calculated thus: 12700 - 12650 = 50 premium on the Long Put (12650) = 34.5 Max Risk = 84.5 points?
price will be 50 for 12650 put today (when price reaches 1.2700) , it will be cheaper as days pass

100 points risk

By wednesday you may be able to buy put for 25.

 May 15, 2017, 11:57am #29 Joined Mar 2014 To what extent is 12650 a technical level? A function of the option premium? and a function of your R:R strategy?
May 15, 2017, 12:06pm   #30
Joined Apr 2017
Quote:
 Originally Posted by cbrads To what extent is 12650 a technical level? A function of the option premium? and a function of your R:R strategy?
If it drops , it touched 1.2650 last time , double bottom there.
If I have stop loss at 1.2650 , then if touches I lose without an option.

Option just gives me the holding time for a week.Trade may go to 1.2600 and rebound to 12800

 May 15, 2017, 12:25pm #31 Joined Mar 2014 OK thanks
 May 15, 2017, 2:18pm #32 Joined Apr 2017 I use options as protection , just in case market falls 30% within a few weeks .I only risk 15% of my capital in this strategy. By using options I limit my risk