Daniel Mankani "DynamicTrader – Trend Trading Dynamics" Trading for a living, systematically profiting from longer term trends.

22Jun/12Off

Trading Tip: Watch the futures and not the option price.

If you have a position on an option, always watch the underlying instrument for technical trading directions, the underlying drives the derivative, whose pricing determined mostly by its own supply and demand. Therefore, dont watch the options price when trading, instead focus on the underlyiing.

if u see the underlying moving, breaking ur levels, then decide on the options price you will trade at, the decision making process of the trade, should be based on the futures direction, and not on the option price.

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