Curious... if DRJ isn't a member, why is he on the floor of the CBOE so much for "CBOE-TV" PS... Insideoptions blows.. Buy Cottle... something you can use...
It was an excellent jump start. But remember, it was 1977 and there was so little help available for option traders. It was so long ago, that there were no put options traded - only calls. Marty introduced us to the idea of using theoretical values (Fisher Black sold his monthly list of estimated stock volatility for every stock with options). we had computers (very few of them and you had to wait in line to use them) called 'Monchick-Webers' that did the theoretical value calculations. Many floor traders refused to use those theoreticals, giving us an edge. Marty taught us to use the Greeks to help manage risk and various other, useful stuff. but, it's been more than 30 years and I don't recall the details. Thus, a jump start - yes. But I believe everyone would be as knowledgeable today without that introduction. The big difference is that some of us would have gone broke - with no road back - without that training. I cannot speak to Najarian's issues. I know him from the floor, and well enough to say 'hello' if our paths cross, but that's all. Mark
Two questions; were you on the floor of the CBOE floor in 87? and who was the best option trader you met and why. Thanks in advance. As a comment it seems that rock star traders are almost universally hated.
In October 1987, I was trading from off the floor. Still got into plenty of trouble. The truth is I cannot tell you who was 'best.' I traded in one pit (Hewlett Packard was main stock) and did not roam the floor. I know one trader (whom I dare not name) who refused to go onto the floor during the crash, but made lots of money from positions and gained a lot of fame. For what? For being afraid to make markets when customers needed markets to be made! Totally unfair. People get reputations from making money and sometimes it's just luck. I know one guy who decided to take a chance and 'bought the book' (all public orders available) of a FOTM call by paying 1/16. The market gapped higher the next day and he made a fortune. Best trader or lucky? The best trader is one who quietly and consistently made lots of money every year, did not boast, did not reveal his secrets - if he had any - and is probably unknown to this day. But, I have no idea who that is. I know this is not the answer you seek, but it's the best I can do. I don't believe in 'rock star' traders. And I don't know if they are hated because of their success, their lies about being successful, or because of all the boasting they did - regardless of success. Has any one of these 'stars' even provided proof of success, other than living the lifestyle of a wealthy person? Mark http://blog.mdwoptions.com/options_for_rookies/
Good points, here is an interesting article on survivor bias. As far as trading goes its hard to prove you are skilled vs lucky, even if you have a good track record. It is going to be impossible to prove future results, which is all any investor is interested in anyway. Good trading. http://www.mutualimprovement.com/2006/09/understanding_s.html
i don't see the need to write a full sentence...(and on and on) so i use the ... sorry it bothers u...
========================= I like thier well charted books more than thier e-commrnts or TV talk; books last longer than TV talk. TV talk is cheap. Hope these are normal, understandable sentences.......................................... Never did find out how Joe's exit on penny stock trade E-Trade did?? He must have been a market maker, as short term as he trades perhaps. As far as past TV talk , i found Karen Finerman swing trades to be more helpful,old news example, short LEH, long something else.She liked big trends ,but that mothers time frame varies. If one likes videos,bloomberg.com has free good nuggets all the time;Jim Rogers free video on ''Bankruptcy good for GM'',today.: