Does anyone make a living using straight directional trades ?

[newwurldmn]

Quote from SamGold:

I have made 40% and 110% ROI in 2 consecutive weeks playing directional moves with flys and calendars... with small sizes... on the ES and SPY...

Impossible to do with big size (10,000 ES and up). Bid-ask spreads too wide, commissions too high. Execution delays too big. Ass open wide cold in the open for too long to get them off.

A crap market for pikers, that's what options are.

And before you comment, do the math: 10,000 ES is about 650 M non-leveraged bet. Peanuts compared with the cash or futures markets. I can get 10,000 ES done in or out 1,000 times faster than a 100 ES FLY at mid.

A waste of time.

If you are trading 10,000 ES at a clip, you can easily get insitutional coverage where you can do 5000 SPX options mid through a bank on a clip.

 

[Cdntrader]

Quote from newwurldmn:

If you are trading 10,000 ES at a clip, you can easily get insitutional coverage where you can do 5000 SPX options mid through a bank on a clip.

You would need electronic execution(aka instant execution) to make it viable.

If only the ES/SPXW options had the liquidity and spreads of the SPY.

 

[newwurldmn]

Quote from Cdntrader:

You would need electronic execution(aka instant execution) to make it viable.

If only the ES/SPXW options had the liquidity and spreads of the SPY.

At the mentioned sizes you could do it over the phone instantly. The cboe floor is crazy liquid.

 

[Cdntrader]

Quote from newwurldmn:

At the mentioned sizes you could do it over the phone instantly. The cboe floor is crazy liquid.

From experience that just isn't viable. Too many variables.

Remote daytrading options must be simple, or it doesn't work.

 

[newwurldmn]

Quote from Cdntrader:

From experience that just isn't viable. Too many variables.

Remote daytrading options must be simple, or it doesn't work.

What variables are those?

 

[Cdntrader]

Quote from newwurldmn:

What variables are those?

human.

 

[TskTsk]

Doesnt everyone here make a living doing directional? Not just ul direction but vola. Systemic alpha where you do the same thing over and over again and make money is hard to come by...most money is made picking direction in a discretionary manner. Am I wrong?

 

[newwurldmn]

Quote from Cdntrader:

human.

what kind of human variables? if you are trading 10,000 ES/day you are a very valuable client to any firm/bank. You are paying the street anyhwere from 2.5 - 7.5MM in commissions. There will be no issues.

 

[traderlux]

Quote from newwurldmn:

what kind of human variables? if you are trading 10,000 ES/day you are a very valuable client to any firm/bank. You are paying the street anyhwere from 2.5 - 7.5MM in commissions. There will be no issues.

...yeah...but i feel they call me a muppet after i hang up the phone....

 

[newwurldmn]

Quote from traderlux:

...yeah...but i feel they call me a muppet after i hang up the phone....

If you are paying some salesman 7MM in commission he's probably got your photo on an alter in his house (which you paid for and he knows it).