Day trading OEX options

Discussion in 'Options' started by roncer, Dec 2, 2006.

  1. roncer


    Anybody else out there day trading the OEX's? I use IB and generally trade about 4 to 5 times a day and generally get flat before the close. I am a timer primarily so I use at or near the money $2 to $6 OEX options. I find the time lag before recieving fills frustrating yet I like the slower price data moves compared to the emini futures.
    I am posting with the hope of talking with any of you out there that are trading the OEX's as it seems that very few do. It would be nice to be able to share and learn what others in this area are experiencing.

  2. I'm not any longer, but I had some pretty good success with them. I had an automated trading system which looked solely at the price action of the put & call I selected for the day and then would go long only. Simple momentum trades actually worked pretty well.

    I stopped trading OEX when I started messing with OEX boxes and did something stupid. :) I've often wanted to come back.
  3. i traded those bad boys back in `98 /`99 when there was nice vol on a daily basis.......always had trouble getting good fills on them,& if you get a nice fill,it`ll usually go against you......but hav`nt touched them since 2000.
  4. roncer



    My background is 10 years plus of trading index futures. But I have burned out on fast snappy price data action. And therefore I do find the OEX's rather peacefull to watch......much less stress. But I definite open to suggestions as the the fills are terribly slow.
  5. roncer


    Spooz Top,

    So what do like now?
  6. Maybe russell 2000 would fit the bill? I've been trading them lately. The spreads aren't super, but the index is much more reasonable than ES (IMHO). I wish S&P 400 had options--EMD is often pretty relaxing to watch.
  7. roncer



    I will give the Russel a good look...............Thanks.

  8. Hi Ron,

    Like yourself, I trade the OEX daily and have for a number of years. (I also trade stock options.)
    I started out several years ago with using mathematical mechanical systems. I traded this way for a number of years and finally got tired of the inconsistant performance from month to month and the lack of fills.
    I eventually switched over to using a pivot point daytrading method. I like this much better, but of course there is a lot of variables one can do with pivot points and OEX options.

  9. i`m pretty much an ES`er exclusively.......i`ve used them since their inception in `97.........against the advice of my friend/broker at the time whom insisted they are only hedging tools against he could`nt see the future (pun fully intended) with such a great product.

    so much has changed from then to now with the ES such as abundant opportunities intra day....even getting in on a trend ,you were given multiple entries during the day,even if you missed a great one,there was another an hour later.sad to say black boxes/algorithms rule the day & have heard they accrue for up to 2/3 rds of the daily volume.....they just step over each other off small coils/pennants & rip from there.

    i can remember in 97` thru `99 ,300 point whipsaws on the dow & 30 handle saws on the spooz....those were the rich days where trading was fun & you get a 100 point gap & grind at the open & wait for around 1pm to find a non conservative entry from the daily range.don`t get me wrong there maybe 4 decent vol days a month but vs. the 15 -8 to 9 years ago is really night & day.

    i prefer the ES because it`s an old friend that i know well but can`t trust vs. a new friend (YM/ER)i don`t know well enough & can`t trust...........knowing the old friends habits gives me that little edge to stand maximum heat & to know it`s/his filthy habits like setting traps(ex. friday close) or running stops only to reverse(fri afternoon) & making the newer traders want to vomit.key to the game is defence,defence & more defence.....when you load up on max size & leveraged to the hilt is when you`ll be lit up & smoked like a philly blunt....the market seems to know when you`re at your most vulnerable & will exploit you.pick a vehicle & master it the best you can.

    back to the OEX....`98 ,i believe.....we were close to limit down( when the hell was the last time that happened...LOL) 30 points to go on the dow & pretty much new it was inevitable we`d bounce.i wanted some calls,so i split the did/ask & was bidding for 10 to the dow crept to limit,this son of a bitch would not budge the ATM calls an inch,finally we go limit,i went to take the offer,he froze them & started inching them up 1/16ths........story be told, i missed one of the sickest V bottoms i`ve ever seen.
  10. roncer


    Yeah Spooz Top, Whew, I hear you. I was there in the 90's with the ES and the good volumn with the afternoons often turning higher. But then I gradually let the fast price data effect me too much. When it got volitile I would get more volitile and I have now found more of a comfort zone with the OEX options, yet they are full of drawbacks. Sometimes you get your fill in 5-10 seconds and another time which is more typical you don't know for sure if you are filled up to a minute or so. It makes one feel that you are at the mercy of the floor people or what ever it is that is making this market. Liquidity often seems pretty light or at least it feels that way, then bam OK here they are and the game is very alive for awhile with price moving nicely. Interestingly I time and trade these options almost like the way I traded the ES and I pretty much just use ES chart data and indicators. I do keep one eye pretty much glued to the NYSE advancing issues.

    I would like to know more about the routing of our OEX orders if anybody can comment about what's going on after an order is entered??
    #10     Dec 3, 2006