Search results

Find a stock in an industry that you expect to increase in value vs a correlated stock you expect to do poorly. And example would be to trade NIO vs Tesla or BA vs GS or RUT vs DOW etc. By being long/short it removes market risk and targets your opinion on a particular stock or industry versus...

Long/Short equity pairs. Option spreads. Directional trades.

I know Andy very well. I stood in front of his specialist post for 25 years. About 8 of those with him as the specialist. Great leader. Great for the public. Made tight-deep markets even during times of stress. You can really see the character of a man when he puts the customer first all the...

They are not trading yet. "Subject to regulatory approval."

I think there is a place for a retail investor that is not day trading and can't get leverage on their own to swing trade these instead of SPY. No wash sales. MTM P/L. 1256 tax treatment. For active traders, these are too small.

I would have prefered a Micro E-mini Future that is $25/point or 1/2 the emini. 1/10th is too small and commissions and fees will be too high to actively trade. Seems like the CME wants to attract those with very little and still want leverage. I'm not a fan.

Interesting. They expire today and right now that spread is worth much less than $0.25. Are you sure you entered a live order? I would cancel it and call your broker.

I can't tell you that.

These are very wide markets. Right now the mid point is $0.45 but I expect it is worth more if I ran a flat vol which I do not have the capacity to do with options on futures. You are basically bidding lower than anyone would sell it.

What does it say the bid/ask spread is on all the legs? Is this a live order or sim?

I agree that it is liquid but market makers do not show their best bids and offers so it requires manually working your orders to find liquidity. And, I if lived in a different time zone than US markets, I would consider ES for the longer trading hours.

Yes, it is. Have you considered that it is also based on assumptions that will be off too. Interest rates, dividends, Vol skew, etc. These are just estimates that should be used by retail clients as estimates. Making trading this complicated only detracts from more important items like...

I skimmed the paper and read the Conclusions. It seemed to imply that valuations were OK but BS did not provide an accurate delta. If the average retail trader used .42 or .40, it is really not much different. As a market maker I used Actant Quote which used a variation of the Cox, Ross and...

You should enter spreads orders not try to leg. You need to calculate fair value for yourself and not use midpoint which can change with small customer orders. Then decide the most you are willing to give a market maker to enter the spread and enter an order a little lower than fair and move up...

Ok, I have not heard that one before. Why would you use a different model for Jan 2020 and Jan 2021 vs Dec 2019 or Aug 2019? I would need to make assumptions on the inputs, but I would use the same model.

You are correct. Spy has narrow liquid spreads, but SPX is 10X SPY and has better tax treatment. A $0.01 spread is SPY is like $0.10 in SPX.

Can you give a live example of the spread and what the bid/ask is on the markets if you entered a market order and then what price you are looking to trade. Maybe your bid is just too low.

A little too simplistic. Short term uncertainty would not move the 1 and 2 year options as much as their expected returns from those moves would not be expected over that time period. And, if you buy a calendar - Long 1 or 2 year options and short options say out 30 days, and you get a big move...

https://www.lightspeed.com/trading-platforms/lightspeed-trader/downloads-and-documentation/

The thread was about what is best for day traders. I'm going to avoid pointing out what I consider other brokers don't have and focus on what we do best. We offer choice. LS Trader is really fast. Switching charts from symbol to symbol seem instantaneous. Same with hot keys and hot buttons. The...