Anyone scalping the FTSE Futures??

Artycharty · Aug 20, 2021

Artycharty · Aug 20, 2021

Our supp broke

Artycharty · Aug 20, 2021

Tiz in our bounce zone
will it hold.?

2be · Aug 20, 2021

Today is the 3rd Friday of the month, option expiration, often high volatility, not necessarily correlated to PA patterns one is used to trigger the trades. MMkrs and big players will do what is necessary to get their options working to their advantage.

Do not forget that options like all trades have two parties with opposing interests at that same given time, suppliers of the options (the institutions or individuals that write these options) the other party are the buyers of these options. Both parties are of formidable size, at times being on the both sides. It takes real skill to make both sides profitable at the end of the cycle (expiry), since the existence of the proverbial toaster. Of course they also can roll them over, you try to roll them automatically, and the toaster will set a smoke alarm, not so with the big boys, giving themselves huge discounts if and when they roll them in for another cycle. When buyers are satisfied, and cover their option, usually there is a turn for the option originators (writers) to have a go, and the PA is volatile like the last few days. This is how the well engineered market miracle happens, when both sides are satisfied at the cost of the ignorant but for ever hopeful. Years later you can read it in the books written by retired traders who made it, institutions are not that forthcoming with describing the arrangements, why would they?
A good part of this happens in the dark pools anyway.

What Are Dark Pools? How They Work, Critiques, and Examples

A dark pool is a private financial forum or an exchange used for securities trading.

www.investopedia.com

Due to the above I observed that often few days before that 3rd Fri expiry are also very volatile especially Thursdays, like yesterday, sometimes these Thursdays are more volatile (in both directions) than following Fridays, especially before the triple witching Fridays.
Something additional to be aware.
Good trading to all.