Today I was feeling a bit frisky and noted the extreme volume in the Qs 42 near puts early on. Being a lazy sort, I figured the big guys knew something special so I picked up a block at .16. Now, just an an aside, I love these kind of plays and have probably made most of my money piling on these setups.
With the NYAD in steady decline after the first 5 minutes and the IWM leading the way down (not shown), I was looking to S1 as a reasonable target for today.
AT 13:00 the Qs made a dive for S1 on the highest volume bar of the day and I decided to bail as the 42 puts (QQQSP) hit .28/.29. I managed to get out a few seconds before the bid dropped to .27 and was thus able to book a .12 gain (75%) over 150 minutes. Only wish I had another 100 contracts, but things are always clearer in hindsight.
The market is still in a strong technical decline and I probably should have left a few of the contracts open to pick up further weakness but I'm done for the day and off to the links. A pick up item on Cheaphooker: (clever, huh?)
Cheaphooker was originally inspired by a weekend carry system for the British pound developed by Joe Krutsinger, the holder of Tradestation license #1 (back when TS was $2000-2500). Joe's been around a long time, is a master system developer and a great teacher and very entertaining speaker if you get a chance to see him (he's been at recent TradersExpos lately hawking, what else?, TS . Here's a little item from him and you can check out more of his products and record here.