Are there any successful OEX traders out there or am I just kidding myself. It seems I take 2 steps forward and 1 step back. I am a discretionary trader and those huge OEX bid/ask spreads can be a wonderful thing when the market moves in your direction but the reverse is also true. The spreads can take out a break even position rather quickly.
Check out this guy: http://www.daytradertoad.com/oldspread.html He's got a great track record. Mainly daytrades. (I'm in no way connected/affiliated to him)
I've corresponded with him past 9 months, Really nice guy, Can't do what he does though, sell premium turn it to fly after decay. Wish I could but.... I still don't know how these OEX traders do it off floor with these huge spreads. Any commemts?
I think its a rough gig...Even selling premium, you still have to have some feel for direction because you are always exposed to directional risk...If you can really gauge overbought and oversold really well(and thats not at all easy in this environmetn), I think you can do some decent stuff with a balance of long vs short premium...But I still dont think that it is at all easy to manage the OEX with large opening gaps, then flat periods, followed by large event risk in the form of economic reports, etc... I had done some stuff with butterflies in the center and then selling premium on the peripheral wings, but you still have to take on some pretty big risk while building the position...It gets very complicated, very fast...Sometimes it works, othertimes its a disaster...
Thanks for the replies. Hardrock375: I'm not sure who Beck is? Jocke: I acutally followed the Toad some time back. At that time he would hold positions that went against him overnight or for a few days. In several cases it helped him, but I normally don't hold a simple call or put position overnight. It appears that he now limits the overnight plays. Vulture: I agree. I have had some success with various spreads. For pure directional trades it has been tough. I keep a notebook of trades that I closed but didn't have the guts to keep overnight just to see how they would turn out. There are some big winners in that notebook along with some big hits as well. It's frustrating because just a few of those trades could really make a year but the risk is just too big for me at this point. I have started looking at futures but fear I would be making a larger number of trades than I do with options.
Real nice guy who used to moderate a yahoo group. I don't know where he is nowadays. REally knows his options inside/out PLUS nice enough to share insights w/o getting or expecting any in return. (i.e not selling anything)
GATrader, I agree that Beck is a nice guy. The Delta Neutral group over there has been taken over by trolls and other useless posters. I can imagine that watching either Beck or Cottle trade would be amazing. Both are very nice guys, and love to teach. I hope to reach their level someday. I have gotten to the point where I can trade around positions pretty easily, however I am not quite to the some of the exotic positions yet. This is partly due to commission structure, and partly due to having homework at night (still in school). LOL. Oh well, I have two months off this summer before I start flight school.