Options Swing Trades

This is a discussion on Options Swing Trades within the Swing & Position Trading forums, part of the Methods category; T2W members, I forgot - but wanted to emphasize here - that on average, I allocate my bets to be ...

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Old Jul 21, 2014, 10:22am   #16
Joined Apr 2014
WklyOptions started this thread T2W members,

I forgot - but wanted to emphasize here - that on average, I allocate my bets to be able to attack a specific entry setup with at least 2-3 "bets" accordingly.

Especially when dealing with US and European binary option types - since these products are all-or-none products at expiry, it is important to have sufficient bankroll and # of bets per setup.

Unless one is effectively trading a longer-term swing campaign lasting several wks or months, it is difficult to hedge or apply "repair hedging" techniques.

Hence - again the need to carefully allocate out the risk capital to at least 2-3 potential entries per trading setup/criteria.

I have also found the forex volatility - and the strike price intervals of the US binary options on the Nadex - to be much different than the CBOE wkly or monthly options. So it is still a learning/fitting process for my setups vs volatility vs correct time frame to select out for the T1 time frame.

The European binary options are easier to trade/manage per setup because there is no need to evaluate strike price levels and strike price interval size vs volatility. I trade European binary options for intraday binary trades < 2 hrs in trade duration. Longer than 2 hrs - I tend to use the Nadex binary options.

Well, more to follow-up later.

Regards,

WklyOptions
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Old Jul 21, 2014, 8:13pm   #17
Joined Apr 2014
WklyOptions started this thread
Quote:
Originally Posted by WklyOptions View Post
T2W members,

I forgot - but wanted to emphasize here - that on average, I allocate my bets to be able to attack a specific entry setup with at least 2-3 "bets" accordingly.

Especially when dealing with US and European binary option types - since these products are all-or-none products at expiry, it is important to have sufficient bankroll and # of bets per setup.

Unless one is effectively trading a longer-term swing campaign lasting several wks or months, it is difficult to hedge or apply "repair hedging" techniques.

Hence - again the need to carefully allocate out the risk capital to at least 2-3 potential entries per trading setup/criteria.

I have also found the forex volatility - and the strike price intervals of the US binary options on the Nadex - to be much different than the CBOE wkly or monthly options. So it is still a learning/fitting process for my setups vs volatility vs correct time frame to select out for the T1 time frame.

The European binary options are easier to trade/manage per setup because there is no need to evaluate strike price levels and strike price interval size vs volatility. I trade European binary options for intraday binary trades < 2 hrs in trade duration. Longer than 2 hrs - I tend to use the Nadex binary options.

Well, more to follow-up later.

Regards,

WklyOptions
EURJPY Binary Update:

The EURJPY Nadex $137 short call binary trade was exited this morning at 0816am EST at breakeven. The bearish momentum stalled after several hrs in the trade. The T3 Hourly chart formed Key Support at 136.926 - 136.930 across several hourly bars without being able to close < 136.925.

The T1 Daily chart still indicates a bearish trend & momentum bias over the past several days.

Will look to retest another bearish trade later today IF the proper T2 H4 and T3 H1 charts indicate realignment back to the bearish momentum bias.

Thank you.

WklyOptions
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