wasn't cassandra that hollywood advisor that scammed a bunch of actors and artists. It was on American Greed.
In terms of the Chicago options prop firm business model, it is primarily in market-making. The market is very efficient, competition is fierce, and the bid/ask spreads are very tight. If you are making markets in exchange-traded electronic options markets and hedging your delta risk on NYSE or NASDAQ, you are eating at McDonald's for the most part. After expenses, slippage, and the finance carry on the book there is just nothing much left. There is alot more meat on the bone in OTC options, but that is another discussion altogether because of the risk and capitalization requirements.
figured. Id be weary of taking a tainted name. (unless of course this is the original and the scammer copied) ------------------------ What type of trading do any of these shops do? It would seem that day trading options isn't very profitable due to bid/ask spreads and commissions. I would assume they would be using some sort of swing trading strategy.
Everything from market making to momentum trading. Some of the most lucrative traders are actually daytrading options. Sometimes 5k to 20k contracts a day. On a good day these guys can pull down 100k. The irony is that momentum trading is probably easier with options then stock. Much more liquidity.
Yes, momentum trading is the model I was looking at for options trading from signals I get in the futures markets (momentum out of highly out of balance open interest based supply and demand events......like the 02-11 CL had today in the $92.30's and above).