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Ansare
Registered: Mar 2007
Posts: 161 |
08-31-12 11:58 PM
I regularly trade /SI and occasionally place an option trade for giggles. Have been working on something I'd like to try with a bit more serious effort and need some advice.
Love the liquidity of spy and the q's but prefer those that move more like goog/amz/bidu etc. Are there a few generally accepted and well-known products which offer good volume but higher volatility that I'm missing?
BTW, I have awesome respect for anyone who regularly is profitable trading options. The complexity is pretty mind-boggling.
Thanks very much.
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Don Bright
Bright Trading, LLC
Registered: Oct 2001
Posts: 11698 |
09-01-12 01:38 AM
Quote from Ansare:
I regularly trade /SI and occasionally place an option trade for giggles. Have been working on something I'd like to try with a bit more serious effort and need some advice.
Love the liquidity of spy and the q's but prefer those that move more like goog/amz/bidu etc. Are there a few generally accepted and well-known products which offer good volume but higher volatility that I'm missing?
BTW, I have awesome respect for anyone who regularly is profitable trading options. The complexity is pretty mind-boggling.
Thanks very much.
Well, first off, options, like trading, is as simple as you'll let it be, or as complicated as you want to make it.
Higher vol, more likely movement. The Pro's, on and off the floors, can respond immediately, with and without HFT algo's.
Before going forward, be sure you understand the concept of conversions completely. Check them out before placing any trades, and you'll find that every option is priced within pennies of fair value based on interest rates and time to expiration.
After that, think about earning theta's, simply time decay. To quote a famous friend of mine "Options are meant to be sold."
If you have specific questions, let me know. If I can't help, I'm sure Atticus can.
Don
__________________
Don Bright (not an alias)
Bright Trading, LLC
http://www.stocktrading.com
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Martinghoul
Registered: Jan 2009
Posts: 5641 |
09-01-12 01:22 PM
Quote from Don Bright:
After that, think about earning theta's, simply time decay. To quote a famous friend of mine "Options are meant to be sold."
I am sorry for your loss  .
In general, with all due respect, Don, I think you should be more careful with recommendations like this, especially when addressed at novices. The proper understanding of all the nuances of your friend's somewhat correct statement requires experience and hard work. Without proper understanding, the recommendation can be misleading and a recipe for complete and utter disaster.
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Ansare
Registered: Mar 2007
Posts: 161 |
09-01-12 01:53 PM
Quote from Don Bright:
Well, first off, options, like trading, is as simple as you'll let it be, or as complicated as you want to make it.
Higher vol, more likely movement. The Pro's, on and off the floors, can respond immediately, with and without HFT algo's.
Before going forward, be sure you understand the concept of conversions completely. Check them out before placing any trades, and you'll find that every option is priced within pennies of fair value based on interest rates and time to expiration.
After that, think about earning theta's, simply time decay. To quote a famous friend of mine "Options are meant to be sold."
If you have specific questions, let me know. If I can't help, I'm sure Atticus can.
Don
Appreciate the reply and additional information, thank you. But unless it went zooming over my head I didn't see a reply to my question: "Are there a few generally accepted and well-known products which offer good volume but higher volatility that I'm missing?"
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Nanook
Registered: Nov 2006
Posts: 303 |
09-01-12 05:34 PM
Quote from Ansare:
Love the liquidity of spy and the q's but prefer those that move more like goog/amz/bidu etc. Are there a few generally accepted and well-known products which offer good volume but higher volatility that I'm missing?
At the very top of the EliteTrader website is a green band; click on Options Analysis; hover your cursor over tabs that are displayed for imp/hist vols, volumes, etc.
Yahoo Finances' Option section for additional info.
Optionistics is another source.
The above are free and may be of some interest to you.
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newwurldmn
Registered: Apr 2011
Posts: 2622 |
09-01-12 05:40 PM
Quote from Martinghoul:
I am sorry for your loss .
In general, with all due respect, Don, I think you should be more careful with recommendations like this, especially when addressed at novices. The proper understanding of all the nuances of your friend's somewhat correct statement requires experience and hard work. Without proper understanding, the recommendation can be misleading and a recipe for complete and utter disaster.
+1
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