ES Friday 9-26-14

The key today will be the O/N midpoint retest as we failed yesterday and the majority of yesterday was spent forming a bell curve..the selling really came in from the first 90 minutes and the rest of the day we spent chopping back and forth.....initial key levels on upside are the 64 - 65 and 68 ...below will be 60, 56.50, 53.50 and 50.50......my focus will be taking trade to get back to the midpoint of the On session in RTH .

starting small longs in On at 56.75.........I have 53.50 as a spot they may need to test so O/N midpoint may change before RTH opens....that is the danger of trying for the midpoint before the O/N session has completed ...target now becomes 59.50...just slightly below the 60 volume I saw in O/N session...we also need to get back above YD's RTH VA low......Midpoint has shifted down now too

wow....what a lucky trade... i think you guys remembered I was heading out of town and must have helped me along....thanks

Nicely done Bruce! And thanks for the video again

some brief and probably confusing options ramble...but the main point is that I am expecting volatility to revert back down....it doesn't mean prices will shoot to the moon but it may mean some consolidation which is good for options sellers......in general .time is the enemy to an option buyer in most cases and a friend to sellers......anyway here is some babble...and I want spx to close above 1950 today in order to capture about 125 bucks......in the future I plan to start an option journal or thread when I get my brain around them a bit more

hope they are of help New kid and you are welcome....I am trying to hold one for the O/N midpoint at 62...in rth I will try small longs under 59.75 and near the O/N lows as long as midpoint hasn't printed yet....I plan to exit bad entries quickly as I donot plan to give up much of the gift profits from the O/N trade...

They are very helpful Bruce and help me tremendously. I truly do appreciate them.

damn...it's like as soon as I type the thing moves...sure wish I had the magic typing/ trading touch like this everyday.....LOL....I exited at 62 print

that's nice to hear ...thanks for the compliment

Originally posted by NewKid

They are very helpful Bruce and help me tremendously. I truly do appreciate them.

at yesterdays close my 1950 put option that I sold had an 88% chance of expiring out of the money...so that is critical and I will see where it opens....with these option it seems sometimes best to take the quick profit...I sold that for a credit of $125 so if it got to $ 60 I could buy it back and have a 50% return

this market will need to test that 64 - 65 I think first .........

The greenies definitely seem to be the key Bruce. Very insightful...