StockFetcher Forums · General Discussion · 2-Period RSI trades with ETFs -- Using Options<< 1 2 3 >>Post Follow-up
ZeroSum
33 posts
msg #109707
Ignore ZeroSum
12/30/2012 12:15:43 PM

I have been trading leveraged index ETFs and country ETFs (both are mean reverting) with the 2-period RSI setup for quite a while now.

At this point, I know the system inside and out, and am comfortable with it, but would like to explore the use of options instead of the underlying. Can anyone offer some guidance?



gmg733
619 posts
msg #109745
Ignore gmg733
12/31/2012 10:25:55 PM

What guidance do you seek?

ZeroSum
33 posts
msg #109757
Ignore ZeroSum
1/1/2013 6:04:05 PM

gmg733,

Basically I'm looking for guidance on how to structure an option position for mean reversion / RSI(2) type trades. For example, here's a typical trade that I might take:

Buy1000 shares TNA @ $55.00
Stop at $51.50
Sell 1000 shares TNA @ $57.50
Duration of trade was 4 days

How would I approach this trade with options?

Thanks.

Eman93
4,659 posts
msg #109758
Ignore Eman93
1/1/2013 10:24:47 PM

Basically I'm looking for guidance on how to structure an option position for mean reversion / RSI(2) type trades. For example, here's a typical trade that I might take:

Buy1000 shares TNA @ $55.00
Stop at $51.50
Sell 1000 shares TNA @ $57.50
Duration of trade was 4 days

=====================================================

Its really too complicated a question.

Get an options express account... its free you dont need to fund it..

four
3,998 posts
msg #109759
Ignore four
modified
1/1/2013 11:12:13 PM

ZeroSum
5 posts
msg #109707
- Ignore ZeroSum 12/30/2012 12:15:43 PM

ZeroSum ,

I have been trading leveraged index ETFs and country ETFs (both are mean reverting) with the 2-period RSI setup for quite a while now.

At this point, I know the system inside and out, and am comfortable with it, but would like to explore the use of options instead of the underlying. Can anyone offer some guidance?



Would you care to share your system (bold my emphasis)?

ZeroSum
33 posts
msg #109762
Ignore ZeroSum
modified
1/1/2013 11:50:14 PM

Eman93,

Sadly, your answer adds zero value to this forum. What was the point of replying?

At a minimum, an appropriate reply might have been "buy deep in-the-money calls on IWM" or "sell a put spread" or something thoughtful and constructive.



ZeroSum
33 posts
msg #109763
Ignore ZeroSum
1/1/2013 11:54:12 PM

four,

I will share it on a different thread but do not want this thread to get off-topic.



four
3,998 posts
msg #109764
Ignore four
1/2/2013 12:21:27 AM

Thanks

Eman93
4,659 posts
msg #109765
Ignore Eman93
1/2/2013 12:35:29 AM

Options Express has a lot of great tools and free education....

Eman93
4,659 posts
msg #109766
Ignore Eman93
1/2/2013 12:46:56 AM

Buy 10 of the 55 calls and sell 10 of the 57 puts? when it gets to 57.50 sell the calls to close and buy the puts to close.

You usually want to be the seller of high volatility options.. or a buyer of way out of the money... IMHO

dump the trade at 51.50?

dose that help?

StockFetcher Forums · General Discussion · 2-Period RSI trades with ETFs -- Using Options<< 1 2 3 >>Post Follow-up

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