Considering career at CBOE! Need advice!

K

kacija

I have a brother who does some computer work at the CBOE. I went to visit him a few weeks ago and spoke to some people he knows that might be able to get me on the floor as a phone clerk.
In doing so I would have to take a $20,000 a year paycut. Of course with my goal being to become a trader and earn more.

It would be nice if I can trade on my own but perhaps I may be a little undercapitilized with a trading account under 100K and I also have a full-time job that takes up too much of my time. Im not a very experienced options trader but I am far more advanced then you average joe and am familiar with many theoretical and option writing concepts and have been trading a small account an my own for years now. I figured if I work on the floor full time ill be getting an education and a paycheck at the same time and maybe ill be happier. I really hate my job:)

Can some of you who worked or work on the floor please tell me what my advantages/disadvantages may be. If there are any phone clerks or former phone clerks please give me your opinion on this.
 
Quote from kacija:

I have a brother who does some computer work at the CBOE. I went to visit him a few weeks ago and spoke to some people he knows that might be able to get me on the floor as a phone clerk.
In doing so I would have to take a $20,000 a year paycut. Of course with my goal being to become a trader and earn more.

.... I figured if I work on the floor full time ill be getting an education and a paycheck at the same time and maybe ill be happier. I really hate my job:)
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Floor clerks are at the bottom of the food chain - no matter as to whether you work for a member firm or the exchange. You will learn a lot but unless you are very smart, very aggressive and very lucky you will not move up the ladder from a clerk position. You will however learn quite a bit but only if you are completely unfamiliar with the markets and trading business.

At the merc, exchange clerk jobs were often given to people with connections that wanted to trade and wanted an easy way to observe the markets for a 4 month to one year period while they were waiting for their background investigations and funding to be put in place or where they were waiting for a seat purchase or transaction to clear. Some people worked their way up within the exchange from clerks but most people were there short term.

If you have somewhere near 100K you have enough to start trading - I think at the merc you still need a minimum of about 50K in a bond plus additional trading capital.

Make sure this is what you want to do: remember you are giving up 20K each year to do this but if you hate your job and have no major fianncial burdens then I would try it ....
 
nowhere to go...but unemployed

try to stay off the floor unless you are young and tied into a great firm...

i was a cboe member for almost 20 years...if you need advice pm me...
 
Quote from linuxtrader:

Floor clerks are at the bottom of the food chain - no matter as to whether you work for a member firm or the exchange. You will learn a lot but unless you are very smart, very aggressive and very lucky you will not move up the ladder from a clerk position. You will however learn quite a bit but only if you are completely unfamiliar with the markets and trading business.

At the merc, exchange clerk jobs were often given to people with connections that wanted to trade and wanted an easy way to observe the markets for a 4 month to one year period while they were waiting for their background investigations and funding to be put in place or where they were waiting for a seat purchase or transaction to clear. Some people worked their way up within the exchange from clerks but most people were there short term.

If you have somewhere near 100K you have enough to start trading - I think at the merc you still need a minimum of about 50K in a bond plus additional trading capital.

Make sure this is what you want to do: remember you are giving up 20K each year to do this but if you hate your job and have no major fianncial burdens then I would try it ....
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Linuxtrader

The paycut wont kill me. Im 29, very aggressive, and easy to get along with. I dont really know any big shots on the floor but my brother works for John Stafford (Stafford trading). I believe he might be able to get me into that trading firm once I get my foot in the door. He knows quite a few people from other trading companies as well. I can go on my own but I dont like working 2 jobs. Life is too short. I really have a passion for trading. Thanks for the advice.

Chiguy

Ill PM you. Id like to ask you a few questions about your experiences on the floor. Thanks
 
cannot give any specific advice. just happened to know CBOE a little. not a organization any decent people want to work for long. try walmart.
 
I took a job as a pit reporter back when just to get on the floor of the NYBOT. The pay sucked. But the experience was invaluable.
Once you're down there you can network.

Exchange floors/pits/rings can be tight knit groups. Kinda like dealing w/ a gang. You're the newbie jerk until you get the collective nod.."He's OK"

From my experience and from talking to friends working on other exchanges like NYMEX, guys are always flipfloping and usually after new years (It's all about the bonus).

Give it shot. What the hell you're 29.

If after a year nothing develops, move on.

You'll have learned a great deal, met alot of sc*mbags, and will be all the wiser from the experience.

:)
 
Hey kacija. As the last reply said "give it a shot". If you can hook up with a smart and helpful boss, mentor or group, the time could be well spent. What you learn as a clerk is up to you. Just being down there doesn't mean you will automatically pick up good trading techniques. With most traders now being tethered to a mother ship, you might not see how traders hedge without asking them directly. If the position is as a price reporter or quote reporter, you better have a game plan to get with a firm REAL QUICK.
Good luck. I did something similar 24 years ago. Left a well paying job to trade on a floor in Chicago, rented a seat and traded small. Times different now, floors not place to be for undercapitalized rookies. Learn, make contacts and get some financial backing.
kny3:cool:

PS I feel younger than I am, or look
 
IF you have enough money to do it then do it but I wouldn't plan on making a floor job a career. They will be gone.

Try and hook up with a firm that has a computerized trading division because that's the futures.

The floor traders days are pretty much over.
 
Quote from Difital Fibers:

kacija,

Did you make the switch? Was it worth it.
I currently have the same predicament as you do..
Any Advice?

DF
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Try PM'ing. His last post was over a year ago.
 
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