Scaling / Portfolio size

Discussion in 'Options' started by thatscapital, Oct 7, 2008.

  1. I know the answer my question depends heavily on one's strategy, horizon, market conditions, etc. but I'm just interested in general thoughts.

    Approximately how large (dollar value) of a portfolio can one comfortably trade options with, with a time horizon of ~1 hour - 5 days?

    Does slippage become a problem? Are there enough highly liquid contracts to trade a large portfolio?

    Thank you for your thoughts. Please specify if you are speaking from firsthand knowledge or not when you answer.
     
  2. there is no answer.
    It depends on your skills, your confidence, and your bankroll.

    Rulle #1: Don't go broke.

    Make sure you play small enough so that your bankroll is not in jeopardy.

    Mark
    http://blog.mdwoptions.com/options_for_rookies/