No hitman, I did not sell options, I sold the underlying contract that the options are based on, the futures contract.
It is traded just like cattle, beans, corn, gold, silver, etc...are traded, on the futures market.
1 contract is worth $10 X Dow =$104,330
The margin requirement, through my firm is around $5000 per contract, so basically, you are getting 21 to 1 leverage....a 100 point drop in the dow, would be a $1000 profit, and a 20% return on your "investment" (if that's what you want to call it).
On the downside, if the dow went up to 10933, I would lose my entire $5000..(margin) on the trade, for a 100% loss.
I am well on ahead, on the short @10680, and made a decision then, that I would sell it all the way down. I have stops, (get out of the market) at 11001.
If you noticd today again the first minutes was one end of the daily range. happens 1-3 a week sets up good trades. by the way last hour of the last day of the month tends to go down. why/ becausethe big funds dont buy they dont want a problem with the sec regarding painting the tape. its a high proability trade worth watching. good luck
Ditto. All of these high gas prices are gonna hurt the economy in the "future". Dober is right though, the market is supposed to measure about 6-9 months into the future not now. I still think we have an ass buster day or week coming. A minimum of a 200 point drop in the Dow is my prediction by next Friday (in one day). This disaster is gonna have a trickle down effect. God forbid if the Feds keep raising interest rates what that is gonna do to the economy.