StockFetcher Forums · General Discussion · 2-Period RSI trades with ETFs -- Using Options<< 1 2 3 >>Post Follow-up
Eman93
4,659 posts
msg #109899
Ignore Eman93
1/7/2013 3:18:23 AM

here is how the RSI 2 works.. when the weekly, daily and hourly RSI 2 are all below 20 look to buy. the weekly tends to front run the reversal.... daily and hourly work well..

Cheese
118 posts
msg #109913
Ignore Cheese
1/7/2013 11:04:09 AM

Eman93, thank you very much for the tip and prompt reply.

jldelta
16 posts
msg #109958
Ignore jldelta
1/8/2013 10:50:07 AM

ZeroSum

>The whole point of this is to remove overnight gap down risk.

Using deep ITM calls would reduce, but not remove, this risk (by reducing the $ at risk). I can't think of a cost-effective way of removing such risk with this kind of approach.

I understand Connors has updated his RSI(2) work specifically for use with options, but I haven't looked into it.

ZeroSum
33 posts
msg #109961
Ignore ZeroSum
1/8/2013 11:19:41 AM

jldelta, I haven't looked at Connors' latest writeup either. It might be worth spending the $50 and read what he has to say.

gmg733
619 posts
msg #109965
Ignore gmg733
1/8/2013 12:11:38 PM

If you want to go naked, go the other way. Out of the money you will have a very defined risk, benefit from gamma and you're theta will be close to the In the money equivalent and you won't have nearly the delta exposure.

ZeroSum
33 posts
msg #109988
Ignore ZeroSum
modified
1/9/2013 12:38:03 AM

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

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