The options market seems untradeable now

Discussion in 'Options' started by floho, Mar 19, 2020.

  1. ironchef

    ironchef

    Because of the volatility and wide bid/ask, it is hard to trade but not impossible.

    One way was to trade when the underlying was fast moving then it was easy to get ask when you sell, like GILD options this morning.
     
    #11     Mar 19, 2020
  2. FriskyCat

    FriskyCat

    ES futs options aren't bad today.
     
    #12     Mar 19, 2020
  3. I got you no worries. I’ve never had more profitable week than now, even though spreads are wide. Sure it makes it harder, but then again the crazy volatility makes up for it, atleast the way I trade.
     
    #13     Mar 19, 2020
    ironchef and FriskyCat like this.
  4. guru

    guru

    I have no problem trading illiquid options at near mid prices, potentially making market. Here are some UVXY calls I was just playing around day trading couple days ago, with $2-$4 spreads, just bought, sold, bought, sold, bought, sold - usually at near mid-prices and didn't pay attention to wide spreads:

    upload_2020-3-19_10-34-52.png

    Today getting some great deals on SPX options I can't even show because I don't need competition.
    Though here is a small arbitrage I did couple weeks ago that is too good to be true, thanks to wide bid/ask spreads:
    upload_2020-3-19_10-38-51.png

    (yes, an actual, pure SPX arbitrage is still possible in 2020 if anyone asks)

    Basically if you don't try then you simply won't know what prices you can get. While no one stops you from competing with market makers and helping other traders fill their orders. Complaining won't make you money.
     
    Last edited: Mar 19, 2020
    #14     Mar 19, 2020
    qwerty11, ffs1001 and FriskyCat like this.
  5. MKTrader

    MKTrader

    Are you saying we can't believe the hype from TastyTrade and Options Alpha types...that Joe Sixpack with a day job can't amass a small fortune trading and managing 20-30 small positions...especially with insane volatility?
     
    #15     Mar 19, 2020
    JesseJamesFinn1 and ironchef like this.
  6. kmiklas

    kmiklas

    What you need is a 1.5T cash injection into the options markets to close spreads and grease the axle. :D
     
    #16     Mar 19, 2020
    Tony Optionaro likes this.
  7. Delete this before Trump makes fed actually do this..:wtf:
     
    #17     Mar 19, 2020
    kmiklas likes this.
  8. taowave

    taowave

    Completely disagree with OP.
    Having no problem getting filled mid market,and there is nothing better than wide markets with flow

    This is the enviorment where you can actually get significant edge
     
    #18     Mar 19, 2020
    ironchef and zghorner like this.
  9. TommyR

    TommyR

    i think you need both. if you want to blitz them you have to. one thing i will say you need to think you can't lose much in terms of expected value. furthermore they sometimes dont help themselves with so-called hedging practices.
     
    #19     Mar 19, 2020
  10. ironchef

    ironchef

    Joe Sixpack needs to learn how to count cards. :D
     
    #20     Mar 20, 2020
    MKTrader likes this.