Registered: May 2011
10-28-12 11:27 PM
Quote from sle:
You used to be able to get them OTC, but they were expensive and not very popular (I'd know best, given that I used to make markets in that sh*t). And obviously there is no added leverage effect given the cost, you just as well might trade options farther OTM.
Options on options should be much cheaper than normal options,
and from that point of view I think they should become popular if marketed well by the big firms, not OTC.
I believe one can create very powerful strategies with such vehicles, ie a kind of "chain reaction", x levels wide.
Unfortunately it seems the time is not ripe yet for them.