Successful option spread trader

Discussion in 'Options' started by jlryan87, Feb 3, 2011.

  1. jlryan87


    I am referring to traders who trade vertical spreads here. So if you are one of these successful spread traders, how many contracts do you put on initially (not including adjustments)? Are you having problems getting good fills, or not getting enough fills at all? Most appreciated if someone who trades RUT can chime in.

    Best trading :)
  2. MTE


    RUT options is a good product to trade. You can usually get a fill close to the mid point.

    I'm not sure knowing the number of contracts other people trade is gonna help you in any way!? If you are concerned about the liquidity then unless you plan on trading huge size, I wouldn't worry about it.
  3. I stopped trading options spread because of size and a couple other factors. Futures made everything easier and cheaper.

  4. Hi,
    Can you please tell me the IB symbol for RUT? I can get the options, but not the index.
  5. MTE


    I'm not using IB so can't help you.
  6. It's RTY but you have to subscribe to the NYBOT data feed to see it.
  7. rew


    There's RUT on "exchange" RUSSELL and RTY on exchange NYBOT. Both purport to be the Russell 2000 index and both require paying for a market subscription that you probably don't have. I only see options for RUT.
  8. jlryan87


    If you trade 100 contracts with premium of $1, then you get $10,000. 1,000 contracts then you'll get $100,000. While the ability in managing the spread is part of the equation, it is the possibility of being able to put on such volume that let you make it as a full time trader.

    But you can do fancy things with options. The only problem is liquidity and wide b/a spread.
  9. tonyalva


    microsoft has decent gamma bets.
  10. If you look through my old posts it is apparent that I know pretty much all the "fancy" things that can be done with options. I'm not against them, just think that about 75% of guys who trade options should be trading e-minis instead. They just haven't realized yet what they are giving up.
    #10     Feb 3, 2011