riskarb, thanks for the education. do these strategies require prime brokerage accounts (exotics in general) since it's all OTC?
FYI, Mickey mouse exotics trading for the not so well endowed retail trader or for fun: www.betonmarkets.com www.clickoptions.com Country of residence permitting. Edge loss can be v.large! I'm sure there are others out there. Oh, FX exotics at various places e.g. www.oanda.com I believe.
I just read the preceding 8 pages of posts in this journal and I am uncomfortably humbled. translation: there's alot goin on here I don't have a clue about. I am however impressed by the relative sophistication of the posters and riskarb as well as riskarb's and others willingness to share I just started reading Natenberg and find all this intriguing but I imagine until I lose some money (or all of it) will I learn beyond basic option strategies. 11Blade
Risk, Good to see you are back in the Journal Business! Do you ever do anything in Crude Oil or Natural Gas?
Mo thanks as usual for some very interesting links...at least I will kinda understand what he is doing although it is so far out of my league it may as well be Pluto
LOL, yes. Must emphasize, edge loss on these products can make the b/a spreads on SPX options look like charity
Yep I can attest to that. I play some of the hit/miss binary options in FX provided by Oanda. Basically you can use the options to make directional bets on the underlying only, no chance of actually eeking out good profits from trading the options themselves.
Another great site to learn about binary options and trade with small capital is www.hedgestreet.com this site is the bombdiggity, mention my name and get free transaction costs for sixty days, $1.50 thereafter. Each option either ends itm worth $10 or it doesn't $0. They are legit and made a strategic alliance with the CBOE. Their products range from energy to metals to housing derivatives to macro-economic numbers(CPI, PPI,etc.). I don't work for them but I am a customer.