Goldman Retreats From Options as Stock Derivatives Trading Struggles An unusual calm in markets has

Discussion in 'Options' started by ajacobson, Nov 3, 2017.

  1. newwurldmn

    newwurldmn

    The thing that's interesting is that Goldman is known to have a long view on their businesses. for them to get out is saying they don't see the business having long term potential.
     
    #11     Nov 3, 2017
    cdcaveman, ironchef and sle like this.
  2. ironchef

    ironchef

    If they cannot make money trading options how about us retail traders? Maybe there are not enough of us?

    Should I follow them and get out of trading options?
     
    #12     Nov 3, 2017
  3. ajacobson

    ajacobson

    They can't pick their trades as a MM and have huge technology costs. Two advantages you have that they don't.
    Your transaction costs may reflect the benefit of some rebate -they're the guys paying it.
     
    #13     Nov 3, 2017
    ironchef likes this.
  4. sss12

    sss12

    Are you a market maker in options ? I believe (simplified) that is what GS is mainly getting out of.
     
    #14     Nov 3, 2017
  5. ajacobson

    ajacobson

    Probably $300,000 - $500,000 in fixed costs to be a size MM today.

    The CBOE's old member's lounge now has a coffee bar. Nice touch.

    Markets evolve. Enough of the big firms quit MM and that could open up more opportunity for the mid-size and smaller MM firms.
     
    #15     Nov 3, 2017
    JesseJamesFinn1 likes this.
  6. ironchef

    ironchef

    Short answer: No.

    Long answer, MM can be a dream job. If I have a do-over career, I may want to be one.:D
     
    #16     Nov 3, 2017
    JesseJamesFinn1 likes this.
  7. sle

    sle

    That sounds low. I would guess upwards of a buck. The colo fees alone are going to be a few hundred.

    No you do not :)
     
    #17     Nov 3, 2017
  8. ironchef

    ironchef

    The grass is always greener on the other side of the fence.:finger:
     
    #18     Nov 3, 2017
  9. Nope, but you should learn where they target profits. You can figure out a lot of future price movement knowing this. ;)
     
    #19     Nov 4, 2017
  10. ironchef

    ironchef

    How do I learn/find out where they target profits?
     
    #20     Nov 4, 2017