I was very pleased with my short position on /ES this morning. The economic reports released at 8:30 EST amplified an already profitable position. I had also entered an /NQ short based on this intraday graph.
I am counting on behavior similar to yesterday; that is, a falling away from the cluster of activity mashed up beneath the retracement line.
I have a question for you out there who have more experience than I do trading e-mini futures (and by "experience", I am talking about the past few days, which is all there is under my belt). Why would anyone choose to buy index puts when selling e-minis is possible? In other words, with puts, I am getting:
- A relatively thin market
- A giant bid/ask spread
- Decaying time premium
Whereas with futures the only negative I can deduce is a large commission (like $350 instead of $30) and the high degree of leverage (which is obviously a two edged sword; I can make a lot or lose a lot very easily). Thoughts?
