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     sir_lance
Member
Username: sir_lance
Post Number: 21
Registered: 12-2005
Rating: N/A
Votes: 0
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| | Wednesday, December 03, 2008 - 12:42 pm: |  
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OK
I used to trade options with Sanford and all was good. Then Sanford was swallowed up by ComSec and now all is not good. Beside the fact that the ComSec trading platform sux, position statements are delayed (ie have to wait a day until it shows up on your account), and other annoyances I just dont want to mention, I have noticed that there does not appear to be option traders trading, only market makers !
This could be that people are moving to CFDs, Warrants, Spread betting ? I am not sure?
However when i use to trade with sanford, an option may have had a 0.5c, 1c, or 2c spread ie
Bid 0.98 Ask 0.99
Now if you have a look at BHP87 for instance which is an at the money PUT, the bid ask is:
Bid 1.76 Ask 1.86 a 6% spread !!!
So here are my questions:
Q1) Are traders still trading options or are there better derivative products that I should be looking at ?
Q2) I have had a gutful of Comsec and need to move in order to continue option trading OR another form of derivate trading. Any suggestions as to the derivate I should trade and provider would be greatly appreciated ?
Sir Lance
(Message edited by Sir_Lance on December 03, 2008)
(Message edited by Sir_Lance on December 03, 2008)
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jeffro112
Member
Username: jeffro112
Post Number: 1
Registered: 12-2008Rating: N/A
Votes: 0
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| | Wednesday, December 03, 2008 - 05:18 pm: |
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Hi there Sir Lance, Well here is an options trader !!
I have traded options for the past 3 years , and ...I Love it . I have had my ups and downs as we all do, but overall it's very nice.
I trade the Aus & American markets, it's been a great time for puts ay. I use the new Commsec Iress platform , I personally feel it gives me what I need , I had to adjust my Java to get it going OK though. For the U.S. I use Options Express which I find really good if you are trading Strangles.
Jeff
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morton
Member
Username: morton
Post Number: 121
Registered: 05-2005Rating: N/A
Votes: 0
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| | Thursday, December 04, 2008 - 10:21 am: |
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I am an ex-options trader, unfortunately it lacks volume. I agree with the poor spreads. I also disliked the lack of choice for placing limit bids and offers, and the worst, having to execute and buy shares if no one wants to buy your contract at expiry. (Once cost $1700 in brokerage)
The art of options is to pick direction, magnitude and time, it doesnt help having a 6% spread handicap. The options writers can suffer in their jocks, I'm one trader that wont buy options anymore...
Isnt it stupid that naked shorting is banned, but not CFD's or ETO's.
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sir_lance
Member
Username: sir_lance
Post Number: 22
Registered: 12-2005
Rating: N/A
Votes: 0
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| | Thursday, December 04, 2008 - 06:01 pm: |
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Ta Jeff and Morton
Jeff - I will have a look at Iress, but assumes it costs ?
Jeff can you tell me what you think off the option volumes but more the spreads, ie what are you seeing ?
Morton, what does an ex-option trader trade now, CFDs?
I am considering CFD's myself - time to start searching the IC threads.
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jeffro112
Member
Username: jeffro112
Post Number: 2
Registered: 12-2008Rating: N/A
Votes: 0
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| | Thursday, December 04, 2008 - 07:15 pm: |
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Hi again sir Lance, Well Commsec Iress is offered free, but as usual there is a catch. You are required to do (I think it's 8) trades per month, once you have done that they usually leave you alone and it's for free.
Regarding the spread on Options, yes they can be anoyingly wide at times, and you wonder what the market maker is thinking!...Here is the trick I use. I typically look for Options that have a high historic Volitility, watch them and when their volitility is at a low point I check their option chains. You will notice that the option spread has decreased and the price is less too. (Usually... not always)
With this Option I dont care what direction it goes as long as it's not sideways.
I look for options 60 to 90 days out but NEVER keep it less than 30 days from expiry, if you do Theta will murder you.
The reason I dont care about direction is because I Straddle the Option !!
ie Buy atm calls and atm puts, same amount in each leg and same exp date.I also play mind games with the market makers ...usually you can shave the prices down, but you have to be patient.
Well this has been a little long winded but that usually keeps the money trickling in....Jeff
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morton
Member
Username: morton
Post Number: 122
Registered: 05-2005Rating: N/A
Votes: 0
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| | Saturday, December 06, 2008 - 03:50 pm: |
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I moved from ETO's to shorting, however I applied the day before naked shorting was banned, hence, I am so angry to Rudd and Swan...Now I dont short at all...very boring
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