How to get options with distant strike?

Discussion in 'Options' started by thecoder, Aug 3, 2020.

  1. Not sure how they exactly work but try quoting it as a Flex.

    http://www.cboe.com/products/flex

    Xandman is right that they'll be laughing at the request, unless you come in with a big order (500+ lot). Regardless, the main MMs are going to make you a wide-ass market. And when you show your side (bid), they are going to move their offers and make you pay up to teach you a lesson for not lifting their original offer.

    Either way, you are going to have to pay up because the MM's won't have any other place to lay it off.
     
    #11     Aug 3, 2020
  2. xandman

    xandman

    Believe me. I thought I could rob you first. And, I mean a "fair" robbery.
     
    #12     Aug 3, 2020
  3. FSU

    FSU

    Unfortunately as of June 1 you can no longer request new strikes this way. You must go through your broker and they will contact the CBOE.

    https://cdn.cboe.com/resources/release_notes/2020/New-Series-Requests.pdf
     
    #13     Aug 3, 2020
    Option_Attack likes this.
  4. thecoder

    thecoder

    I should have done this trade about 4 years ago by investing $10k when AMD was about $2.90.
    Just imagine how much I would have made if I had held it till now? :)
    Can anybody calc it?... :)
     
    #14     Aug 3, 2020
  5. xandman

    xandman

    You're one of the more sophisticated operators here. But, I do not see how anybody else can attempt trading strikes outside the average chain much less trade the edges. I know I can't.
     
    #15     Aug 3, 2020
  6. xandman

    xandman

    Don't punish yourself with that thinking. You made a decision back then that was right for you at the time. Question the process, not the result.
     
    #16     Aug 3, 2020
  7. thecoder

    thecoder

    A follow-up question:
    What happens if your trade counterpart (ie. the option writer) goes bankrupt in the mean time? :)
     
    #17     Aug 3, 2020
  8. thecoder

    thecoder

    I just try to learn from such a past experience hoping to find another such candidate like AMD.
    That strategy would have made in about 4 years more than 300x the initial investment, ie. 10k to 3M.
     
    #18     Aug 3, 2020
  9. xandman

    xandman

    Retail is protected from counter-party issues. Everything is cleared and settled with the exchanges.
     
    #19     Aug 3, 2020
    thecoder likes this.
  10. thecoder

    thecoder

    Oh, good to know. Thx.
     
    #20     Aug 3, 2020