Once modification and cancellation fees...

Discussion in 'Options' started by qdz3, Apr 1, 2003.

  1. qdz3


    Once modification and cancellation fees are not avoidable, will you join us to protest to the options exchanges and brokers? What actions will you choose.?

    What do you think?

  2. I don't know how you guys do it, but when I scalp options, I balance my delta using the underlying, since it is usually a lot more liquid and has acceptable spreads. One thing I am thinking now is that I might do just what they want customers to do: Before I send in my order I will calculate a good price on the daily timeframe and then just submit a DAY order and wait and see if I get an execution throughout the day. If I do, I immediately neutralize my delta (like I do now anyway).

    So basically, all will remain the same, except I won't follow the bid/ask anymore but rather wait for an optimal entry/exit point.

    That will probably decrease my options trading volume by approximately 80% and profits from options by 60%.

    Speaking of finding something else to scalp, has anyone noticed that NYSE executions are a lot friendlier this week than the last couple of weeks? Or is it just my getting used to the new game?
  3. qdz3


    well, Lob, as long as you have sufficient capital to put up with a safe broker, you can do whatever you want to do.

  4. Get into Futures and out of stocks and options. The S.E.C doesn't rule the Futures market.

    Qdz, I have been on the same side of this fight with you since October. But for your own benefit, stop wasting your energy and time on anything governed by the S.E.C. All the time spent complaining about S.E.C. regulations could be spent in positive efforts studying the Futures market.

    Although I understand that margin seems scary if you've never used it, it's actually much less scary than Time Decay. Buying options is a sucker game, because your timing must be perfect. With futures the market can go against you, and you can wait it out without losing sleep, because the value of your positions doesn't decay just because time has passed.

    The best way to start with Futures I believe is with SSF. Start trading one or two contracts of a low-priced SSF. For instance, BRCD or AMD. It will cost you maybe $100 to try it out. You will soon find how much better it is to trade these than to try trading options, and you will be glad the PDT rules pushed you out of options. As lousy and unfair as I believe the PDT rules are, I am actually glad they pushed me out of Options and into Futures.
  5. qdz3


    Hello hii,

    Well, I think I may give it a try. Thanks.
    But the reason I complain is that they never stop. They whip us small investors like dogs from one risky disadvantageous market to another riskier market where sooner or later they will do the same thing again and again. Is there no laws to prevent this happening?


  6. For us small investor dogs, the CTFC is a much kinder master than the SEC. That's what I'm telling you. The Futures market is not a risky more disadvantageous market than the Options market. The opposite. The Futures market is less risky and more advantageous than the Options market (or even Stocks). That's why I'm saying stop howling about what a cruel master the SEC is, recognize that the SEC is a cruel master that doesn't like dogs in general, and likes particularly to kick little dogs. And come over to the bigger kinder CTFC kennel. Arf arf! :p

    My advice to you is this: do start with very small SSF trades. Do this for a couple months before trying the larger ES and NQ futures.