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  1. I am curious as to how professionals trade the eminis, with the average daily difference between high and low being only 20 pts. Is'nt that very little movement? Assuming a pro intraday trader manages to capture 8 points everyday, for 10 contracts he stands to gain $4k per day. Considering 200 trading days a year that sums up to $800k per year. Definitely an awesome figure no doubt. But not all that spectacular considering he'll be stuck at that point almost forever unless the eminis are liquid enough to allow bumping up the no. of contracts to lets say a 100. I know emins are liquid enough to allow a single trader to put on a trade the size of 100 contracts so long as the transaction in question is a positional one spanning multiple days. But can a trader transact 100 contracts on an intraday trade without moving the markets and consequently eating into his own profits?
  2. thnks a lot mightymouse.... i totally understand that we are in a multi year bull run, probably stronger than any other in history and that call writers consistently lose money in this environment, eating up into their account balance bit by bit what am doing is selling into strength.and if it was a bull market, i would sell puts(and sure am in healthy profits since the start of bull run). its just the way i do it. what am trying to know is whether my profitability will be affected by gap up events, and historical examples in this regard would be highly welcome.
  3. am doing an options strategy which chiefly relies on selling naked OTM calls- no stocks, only s&p 500 index selling puts seems risky coz there have been several instances in history where the index gapped down significantly at the open(1987 crash, 2010 flash crash.......one can find a list of such events at wikipedia). am assuming that selling calls is less risky coz historically, afaik, there have been no disastrous gap ups even during those days when the spx gained record no. of points(one can find this list by searching wikipedia for :list of the largest daily changes in the S&P 500) so am i safe selling calls?its a bull market now....but i actively manage positions so any intraday movements can be easily handled. theres nothing i can do about opening gap ups however(theoretically the spx can go up to infinity but am looking for historical occurences)
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