taterhill Posted November 9, 2004 Share Posted November 9, 2004 I posted this on the Stadium Wall, but may have better luck here....I know this is slim, but I am looking to get into some option trading, and the last time I really looked at some of that was my 1999 series 7 exam....Just have a few questions, that I could not find when using google Link to comment Share on other sites More sharing options...
Alaska Darin Posted November 9, 2004 Share Posted November 9, 2004 I posted this on the Stadium Wall, but may have better luck here....I know this is slim, but I am looking to get into some option trading, and the last time I really looked at some of that was my 1999 series 7 exam....Just have a few questions, that I could not find when using google 110290[/snapback] I don't. The risk simply isn't acceptable. Decades ago Merrill Lynch published a study that showed the lifespan of the average margin account was less than 2 years. Food for thought. Link to comment Share on other sites More sharing options...
GG Posted November 9, 2004 Share Posted November 9, 2004 Active options trading is not something I recommend someone to dabble in. Either you suck your whole time into it, or you'll get creamed. You also need to have immediate access to a PC to send trades in on news breaks. But you can use options as good hedging strategies for your long (ownership) or short (sold) positions. Still, if you can stand the ribbing, ask away. Link to comment Share on other sites More sharing options...
taterhill Posted November 9, 2004 Author Share Posted November 9, 2004 Active options trading is not something I recommend someone to dabble in. Either you suck your whole time into it, or you'll get creamed. You also need to have immediate access to a PC to send trades in on news breaks. But you can use options as good hedging strategies for your long (ownership) or short (sold) positions. Still, if you can stand the ribbing, ask away. 110340[/snapback] yes, right now I am looking at selling some call options(and writing some covered calls), just wondering on some strategies as far as that goes.... Link to comment Share on other sites More sharing options...
GG Posted November 9, 2004 Share Posted November 9, 2004 yes, right now I am looking at selling some call options(and writing some covered calls), just wondering on some strategies as far as that goes.... 110419[/snapback] This is a good start CBOE - otherwise you may want to dig out the old Ser 7 manuals. I usually write calls when I hit a confort period on my long term holdings and just ride the income stream. I just write the option where the strike price is just above the trading price. The income won't be huge (esp) if the stock isn't volatile, but the return is better than t-bill. Link to comment Share on other sites More sharing options...
Willyville Guy Posted November 10, 2004 Share Posted November 10, 2004 thinkorswim, Inc. specializes in retail options trading, complete with training. I know some of these guys; they are very experienced, very successful options traders. Link to comment Share on other sites More sharing options...
HopsGuy Posted November 10, 2004 Share Posted November 10, 2004 thinkorswim, Inc. specializes in retail options trading, complete with training. I know some of these guys; they are very experienced, very successful options traders. 110664[/snapback] Do you know Tom Sasnoff (sp?)? I caught a seminar he and his partner (whose name escapes me, but he did mention that he still trades in the XEO pit) at the CBOE last summer. Seems like those guys like to push the Iron Condor selling, but "only at the right price". They did let slip that odd lots (like 3 contracts) submitted at the theoretical price (split the bid-ask) have a decent shot of getting filled just to clean up the book. The BOX has done alright, but the price improvement thing hasn't taken off quite like I expected. I figured by now they would have eaten everyone's lunch. PCX and PHLX can't have much left, though. Link to comment Share on other sites More sharing options...
Willyville Guy Posted November 10, 2004 Share Posted November 10, 2004 Do you know Tom Sasnoff (sp?)? I caught a seminar he and his partner (whose name escapes me, but he did mention that he still trades in the XEO pit) at the CBOE last summer. Seems like those guys like to push the Iron Condor selling, but "only at the right price". They did let slip that odd lots (like 3 contracts) submitted at the theoretical price (split the bid-ask) have a decent shot of getting filled just to clean up the book. The BOX has done alright, but the price improvement thing hasn't taken off quite like I expected. I figured by now they would have eaten everyone's lunch. PCX and PHLX can't have much left, though. 110757[/snapback] I've met Tom several times socially. From what I hear, the seminars are hugely popular and thinkorswim is doing great. When they started I was skeptical about whether retail online options trading would catch on. They proved me wrong-- people are flocking to it. I don't know much about the exhanges you mention, but the news in Chicago is that the CBOE is considering an IPO with the hope that it will be as successful as the Merc. Link to comment Share on other sites More sharing options...
HopsGuy Posted November 10, 2004 Share Posted November 10, 2004 I don't know much about the exhanges you mention, but the news in Chicago is that the CBOE is considering an IPO with the hope that it will be as successful as the Merc. 111001[/snapback] The ISE has been the leader in equity option volume for quite a while now. They have even beaten the CBOE a couple of months including index contracts. The CME simply ownes the futures world right now with the ES and NQ e-minis, so it's not surprising how well their IPO worked out. The proprietary products that the CBOE have (SPX, OEX, DIA) keep traders coming back, so it might work out for them. ISE wants the SEC to come in and allow all 6 exchanges to trade those contracts, but I don't think they will. If they did, then you could probably say goodbye to the pits. Then there's the whole penny increment argument, but that's another thread... Link to comment Share on other sites More sharing options...
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