Recent content by Abundance Magnet

this is promising... can you show one of an spx leap? i.e. something that is less liquid. i'd like to see if it just showing the traded Hi-Lo, or if it is the bid ask of the option for the entire day. Ideally, over the last 5 days... thanks!

thanks for this. Very helpful. It reminded me that I'm not always trading against a singular entity. In the past, I would stop inching up my price because I didn't want to get string-ed along (price baiting), but really, it is about what i'm willing to buy/sell the security at. If there are...

Yeah, lots of money to be made trading the channels. I've sharpened my charting skills because of this current market. I got sloppy and out of some of my previous habits.

I would say price and volume. Current rally has lacked volume, therefore I am more cautious. That said the last couple of days have been a little better. Still more conviction needed imo. There's what I want to happen, and what I am prepared for happening...

thanks for the insight! For things like SPY i've noticed that sometimes I get a mid-fill or sometimes better (slightly closer to bid). other times, it's mid plus (closer to the ask). That was the case today... any reason why there is that discrepancy? I trade small lots...

i hear ya... MM and their games. I track the b-a of holdings via snapshots so that I can get a better sense of fair value. anybody know of a software that shows/graphs the historic bid-asks for an option?

my observations with spreads like these, is that they will tighten throughout the day. by the last couple of hours, they are tighter and more 'normal'.

Hi, This might be a Q for the former MMs... how much (if at all) does open interest affect the pricing of an option? i.e. if i'm looking at 2 similar similar strikes, but one has more OI than the other, will the higher OI have narrower spreads, and does the MM price it tighter? In particular...

So... Would converting the position to a strangle have helped protect their position? I. E sell naked puts.

Well.. . My guess this is another example of saying one thing and doing a different thing. I can't imagine that if he was applying all of these risk rules in his trading that this would have happened. More likely, one bad trade begot another begot another, etc... Human folly. Pride, fear, greed...

I agree with you. The move was strong but there seemed to be plenty of time to make adjustments. Especially easier to cut losses because it's not his money. Or maybe that she video is so remorseful. It will be interesting to see what unfolds. If it gets exposed to the public... The big news is...

Don't most brokers have margin requirements to enter a naked position? IB has pretty high margin requirements to sell calls or puts for example. Ie cash on hand to be able to sell a call or put. Even with a strong move, wouldn't they be forced to close the position and still have some cash on...

ouch!!! Feel for the clients in this one. As a learning trader, I feel there is lots to learn from this experience. Q... why couldn't the hedge fund hedge the position? I understand they were naked premium sellers. Couldn't they convert their naked put to short strangle? Or close the...

I'm not looking for different, or the same. I just read the markets and do my assessment on a day to day, week to week basis. I'm not stuck on my assessments because my assessment may change tomorrow. Just make the best possible trade given the current situation. =)