tradersams blog

Ahhhh – no trades today, so continue the BHP paper trade.

bhp today

Looking at the chart the share is continuing to rise.  The bottom of the black candle is still above yesterdays close.  Hang in there.

As for the rest of the portfolio, all looking ok today, a few of the stops have moved up.

Volatility

I have commented a couple of times lately that I have found that my trading increases in times of increased volatility, and as things start to trend I lower the number of trades.  This is not a concious decision, rather it is a result of my trading style.  Adam Warner at the “Daily Options Report” has posted a comment in the last week or so about volatility. He’s basically saying that volatility is dropping off – and numbers don’t lie – go have a read.

… regardless of the reason, numbers don’t lie, and we still have the unresolved issue of options volatility overpriced vs. stock volatility.

Basically what I get from his comment is that options are overpriced… I might have to take this into account, because options are a great way to trade BHP.