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Vol Guy
Registered: Oct 2005
Posts: 15 |
08-10-12 12:01 AM
Question: What are the best remote options-focused prop firms that will let you trade your own strategy?
I'll admit it. I'm new to this world (prop trading). I have a strategy that has been borne out of a decade of investment experience, as an equity trader, analyst, and portfolio manager. I'm in the process of reinventing myself from a long-term investment guy to an options trader. I've seen my strategy best described as a "reverse-dispersion strategy". I don't think this description is entirely accurate, butwhatever. BUT, the strategy needs more capital than I have to execute properly.
What are my options (sorry) in the prop trading world? Not enough hour in the next month to read all the prop firm threads, although they ARE very informative.
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1245
Registered: May 2012
Posts: 522 |
08-10-12 12:07 AM
BTW: dispersion theory says that the parts are more volatile than the whole. You look to buy volatility in the components of an Index and hedge it with selling options on the Index. It does not always line up because so many automated systems are looking to do this. The reverse would be buying index option and sell the options in the components. This a very difficult strategy to implement and the math has to set up, or it's a certain loser.
Good luck with that.
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Vol Guy
Registered: Oct 2005
Posts: 15 |
08-10-12 03:46 AM
Didn't really answer my question, now, did you? I was afraid of this. After having read these forums for awhile, it's clear that 95% of these posts are of the "passive/aggressive, hide behind your handle, don't know shit but read it in a book" variety. Of course, some of us were raised with a dose of "if you have nothing nice to say, don't say anything". Unfortunately, some were not.
There. Feel better already.
And if the remaining 5% can reply substantively to my original question, I will be very grateful.
VG
BTW - You may have really meant "good luck with that", but I took it as a snark. I apologize if it was not (but I doubt it).
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1245
Registered: May 2012
Posts: 522 |
08-10-12 11:08 AM
Outside Chicago, it it difficult to find a Prop firm that allows option trading. I'm assuming you're asking about the Prop model where you become a Class B member and trade with your own capital. Traditional Prop firms that back traders as employees are very difficult to break into.
Many Prop firms have closed or are the process of closing because volumes are down and the Clarence firms they need to join with, don't like this business any more.
If you have enough assets for a Customer Portfolio Margin account, over $125K at most Online brokers and more at larger brokers, I would start there. See if CPM will provide you with enough leverage to run your strategy.
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Vol Guy
Registered: Oct 2005
Posts: 15 |
08-10-12 03:00 PM
OK. Thank you.
Another dumb question. Why is the minimum that you specify so high, when I see that IB, for instance, has a lower margin account minimum than 125K?
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optionbull
Registered: Apr 2012
Posts: 245 |
08-12-12 03:32 PM
Quote from Vol Guy:
OK. Thank you.
Another dumb question. Why is the minimum that you specify so high, when I see that IB, for instance, has a lower margin account minimum than 125K?
I have never heard of one particular shop that does this. However as prev. poster described volumes are own, as a result I thnk Bright trading has to look for other means to make some money.. if you look around Don Bright is always trolling these boards.
Curious what do you kneed prop leverage for with options ?
Thnks
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