Option Trading Strategies

Discussion in 'Professional Trading' started by raymond008375, Aug 21, 2008.

  1. I'm a prop trader in Swift Trade, but just for 2 months. My boss doesn't allow me to trade derivatives. But derivatives is my favorite subject anyway. So I want to learn sth from anyone here......

    Do prop traders perform option strategies which can be seen ordinarily in textbooks? Such as bull/bear spread, butterfly, condor, straddle, strangle.....etc.
    Do these strategies have to be hold for a longer time period, like several weeks or even months? Are they useless in day trading?

    And may you tell any other possible trading strategies about option?

  2. MTE


    Options are not really designed for daytrading because of the relatively wide bid-ask spread. So all the multi-leg strategies are not a very good candidate for daytrading, either.

    The penny pricing has made them more daytrading-friendly, but I think futures are more suitable.