I know with traditional options, implied volatility plays a fairly large factor in option prices.. higher volatility = higher prices and vice-versa.. I'm glad you guys are discussing option strategies, because I've been wanting to spend time soon trying to find an option strategy to hedge my forex trades.. I always envisioned that low volatility times would probably be the best times to use an option strategy (I believe almost all strategies have certain types of market conditions that they will either succeed or fail in). I haven't had any time to see if betonmarkets.com uses volatility or not in their pricing, but any standard option stategy certainly should take volatility into consideration.
The funny thing about standard option prices relating to volatility is that volatilty typically goes opposite of market direction and "most" people purchase call options, betting on the market to go up.. Not only is time working against them, but so is volatility! I've done lots of demo trading with stock options along with some live trading, and it is so frustrating to watch a market price slowly go up (like you anticipated, just slower of course), but yet your option value keeps on dropping or staying the same.. lol
Anyhow, sorry if I am wasting time here and everyone already knows these things, but I thought it might relate to your strategy and option trading is one of the few trading experiences that I have
The funny thing about standard option prices relating to volatility is that volatilty typically goes opposite of market direction and "most" people purchase call options, betting on the market to go up.. Not only is time working against them, but so is volatility! I've done lots of demo trading with stock options along with some live trading, and it is so frustrating to watch a market price slowly go up (like you anticipated, just slower of course), but yet your option value keeps on dropping or staying the same.. lol
Anyhow, sorry if I am wasting time here and everyone already knows these things, but I thought it might relate to your strategy and option trading is one of the few trading experiences that I have