Ratan, Too bad you missed the last 13 minutes of down in the futures markets, which of course your cash oex options responded quite nicely to. I believe that is probably the finest vehicle for the small investor to play that is not set up with a commodity brokerage firm. Comissions on options on futures are more reasonable than you might think if you are with the right firm. The reason is that you don't need to buy nearly as many, because they represent blocks of 500 instead of 100 (in other words, 5X more potent). A good discount futures trader can get you done, round turn, for between $19 & $25 per contract. I think that compares very favorably versus trading cash options.
As for the continutation of this move, there's no doubt in my mind!! And a break of 1124.70 on the S&P futures will blow out the natural support of a megaphone pattern that formed on the s&p's in the last couple hrs. This level being broken should signify to all bulls that their party is over, Rover!! Beyond thursday or friday, i would probably avoid daytrading the options to exit on the close, as you'll want to be partaking in the large gap downs that are soon to come.
Just click on my name and examine my most recent posts to get the latest word, ok? (or just search through BK, the only thread i post on).
Now let's get ready to Rumble!!
David |
