a potential blow to options trading

First, they knocked out the numerous stock daytraders with <25K, then they are getting their hands on options daytrading. What next? Are they going to limit futures daytraders too? Small investors fought hard to get a piece of the pie during the last decade with the advent of ECNs, etc. We can't let them roll things back.

I don't know whether Larry McMillan, Jon Najarian or others will be willing to voice their concerns to the AMEX and PHLX. We need to get a few of those who are well-known in the industry to speak up--though probably they don't want to take the hot seat.


stockoptionist
 
hey guess what

as relatively small individuals we cannot do anything about the fact that the big players control the markets. this will always happen. guess where the whole pattern day trader thing started and ended - in the senate, that "millionaires club" who is not in our pockets, but in the pockets of GSCO et al. who want us to disappear so they can better screw the public. and do you really think the SEC has any power over the big players? come on....

what can we do about it? forget about writing your senator or congressman - unless you have $10 million to dangle in front of them. instead, why not support firms who in theory AND practice make it more difficult for the exchanges to screw americans, such as Island. i personally will not trade NYSE or use supersoes because i'm not giving some uneducated imbecile, like a specialist or market maker a slice of my pie. it's really amusing that the NYSE technology is so pathetic that you can't be guaranteed a fill in under 2minutes (a relic from the old days when the specialist had 2min to haul his fat ass back to his booth and fill your order), AND that they REFUSE to move to a consolidated quote system where ECN's get represented on the book.

wouldn't it be nice some day if markets were totally transparent and you could trade directly with whoever the f*ck you want to trade with??? patronize a firm like island, because they're the only ones who have actually DONE something about this problem.

for a good rational rebuttal of the new "pattern day trader" margin rules, check out datek's (who owns island) letter to the sec at http://www.sec.gov/rules/sro/nd0003/nicoll1.htm

the public doesn't understand what day trading actually entails - they think of us as fat, cigarette smoking lunatics whose every other word is f*ck, so don't try and get any support from them, or their elected officials. if you want to form some sort of lobby for day traders, or "non-institutional market makers" i'd suggest you start with Island. they have the cash, the clout, and would benefit the most from day traders having our own lobby. write them a letter professing your love, and how nice it would be if they were to start a lobby for us. i'd pay membership dues for that.
 
And nobody there had heard of this regulation. They said that the CME comes under CFTC regulation, not SEC regulation so they're a bit more independant. So I'm guessing that daytrading CME index options is still allowed. If the AMEX and PHLX want to screw themselves over by losing valuable clientele (volume is thin enough as it is), then fuck 'em. I think a lobby is a great idea but also consider other effective methods of voicing your opinion: trade options on Eurex or trade index options. It's a global economy and the AMEX and PHLX do not have a monopoly on options trading.
This might be off topic but Gandhi made a huge impact in India by refusing to buy british products. Just some thoughts. And I think a electronic trading organization might be a great idea.
 
Hi. I am a stock day trader and was wondering if anyone here make their living by trading options only.

I am a stock daytrader making $ consistently but begin glued to the screen 6.5 hours per day is getting old. In addition, I like the idea of holding positions overnight but am too chicken to hold outright stock positions so options seem like a reasonable route.

I used to be an options market maker on the floor in the soft commodities for 5 years and have made good living there. Is anyone here doing it well enough OFF the floor for stock options on a consistent basis? Could you share some insights/experiences?

Last year, I've read posts in the internet lamenting the struggles option traders have regarding the basic stuff such as accurate option quotes, quote vendors, and most important-order execution platforms. Do these problems still exist?

Thanks.
 
Few people got upset when they came after the under 25K crowd... now they come after the options players... then futures....will "they" stop before it's all theirs again? Not unless they are made to.

We are in their cross-hairs!

It's been fun.

~EC
 
The introduction of single stock futures could kill the equity options markets unless they wise up. The Nasdaq group is determined to avoid restriction on SSF's that impede daytraders. They intend to make it as similar as possible to Lev II and that will drive the options crowd nuts. This will be a much better product than options for daytraders, so we can kiss those options spreads and MM crap goodbye.
 
GA Trader,

I use RealTick and can't say I have much trouble with options quotes, although the analytics could be better if you use that. IB and Preferred both have killer execution setups. The problems are big spreads and relatively high commissions.
 
Then do you think we'll be safe trading futures? Will they leave us alone then? I'm trying to build a business here!

~EC

Find the brokers that supported this and short 'em to death!
 
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