Independent Option trader

[rick cremer]

My ambition is to work independently as a trader.
I have had a 9 to 5 job and I don't enjoy that and I always wanted to be my own boss.

Are there any Independent Option traders here? Please share your routine. Do you work from home or you have an office?

My routine? Well, my hours are rarely 9-5 but I am able to work from both home and the "office". Some months, for example, I work a 5am-5PM shift (Chicago Honolulu), other months 7PM-7AM (e.g. a 7 hour flight from New York to London) , and so on. Now I am working longer hours, routinely 14-16 hours a day. The length of time, roughly, that it takes my co-pilot(s) and I to get our Boeing 777 from Washington DC to Tokyo or Shanghai. Since our airplanes are WiFi, I can trade enroute too.

Because of the weird hours I keep I chose to trade the E-mini S&P options contracts (/ES). They trade, as others have pointed out, 23+ hours a day. Although the volume can be pretty thin in the wee hours of the morning (U.S. time). What I like about the /ES options is that they're very liquid, use the CME's SPAN system for risk analysis and margin determinations (lower margins than equity options), tight bid/ask spreads, offer EOM, Weeklys, and Serial options chains, and I can trade them from any of my iDevices, everywhere I fly. Also, the /ES options are not subject to the SEC's Pattern Day Trading rules. You can day trade the /ES with an account of less than the $25K required for equity day traders. I use ThinkorSwim as my trading platform, I probably could do better than that but it works for me. I don't generally day trade. Most of the time I keep a trade until time/Theta has worked her magic which means holding a position until expiration or until I can take 75% of my profit off the table at which time I close out the short and let the long ride (just in case.)


Best

 

[vanzandt]

The length of time, roughly, that it takes my co-pilot(s) and I to get our Boeing 777 from Washington DC to Tokyo or Shanghai. Since our airplanes are WiFi, I can trade enroute too.

You sure you want to post that on a public forum?

F.A.R. §121.542 part D. is pretty cut and dry.

Your profile says your 70 so maybe you had a few "fingers" too many today.

I like your option strategies though.

 

[syswizard]

re: "F.A.R. §121.542 part D. is pretty cut and dry. "
Zandty....What is that ?

 

[rick cremer]

You sure you want to post that on a public forum?

F.A.R. §121.542 part D. is pretty cut and dry....I like your option strategies though.

Yes it (121.542) is clear but doesn't apply when you're on your rest period as defined in Title 14 CFR Part 117.

Thank you. My options strategy works for me.

 

[ktm]

My ambition is to work independently as a trader.
I have had a 9 to 5 job and I don't enjoy that and I always wanted to be my own boss.

Are there any Independent Option traders here? Please share your routine. Do you work from home or you have an office?

As Robert and others have said, find your way first. You need a consistently profitable strategy that is going to put your equity moving in the right direction. Everyone is different and what works for me or the next guy may not work for you for various reasons.

Once you get on the right track, the daily routine is whatever you want it to be. Whether you are at the beach or over the Atlantic or sitting around watching The View all day - your day becomes your own. And isn't that the goal?

 

[rick cremer]

re: "F.A.R. §121.542 part D. is pretty cut and dry. "
Zandty....What is that ?

He (or she) is referring to Title 14 CFR Part 121 Section 121.542 subparagraph (d). Which states that "

§121.542 Flight crewmember duties.
(d) During all flight time as defined in 14 CFR 1.1, no flight crewmember may use, nor may any pilot in command permit the use of, a personal wireless communications device (as defined in 49 U.S.C. 44732(d)) or laptop computer while at a flight crewmember duty station unless the purpose is directly related to operation of the aircraft, or for emergency, safety-related, or employment-related communications, in accordance with air carrier procedures approved by the Administrator.

Note that the aforementioned regulation does NOT apply to a flight crewmember who is taking a rest period as defined in Title 14 CFR Part 117 (and not at the controls.)

Note also that vanzandt said "part D." It's not part D, it's subpargraph (d). Big difference in the federal regulatory world. But I got his meaning.

Best

P.s. Since this is an Options discussion board it may be helpful to you to know that Options are also heavily regulated under the Code of Federal Regulations (CFR). For example the CFTC regulates commodity options IAW various parts of Title 17 CFR (e.g. Parts 3, 32, etc.). The SEC does equity options also under Title 17 CFR. One must also consider the self regulatory bodies such as the NFA, FINRA, etc. They're like the foxes guarding the hen houses. They give the Jon Corzines of the world some cover to do the deeds that they do.

 

[vanzandt]

He (or she) is referring to Title 14 CFR Part 121 Section 121.542 subparagraph (d). Which states that "

§121.542 Flight crewmember duties.
(d) During all flight time as defined in 14 CFR 1.1, no flight crewmember may use, nor may any pilot in command permit the use of, a personal wireless communications device (as defined in 49 U.S.C. 44732(d)) or laptop computer while at a flight crewmember duty station unless the purpose is directly related to operation of the aircraft, or for emergency, safety-related, or employment-related communications, in accordance with air carrier procedures approved by the Administrator.

Note that the aforementioned regulation does NOT apply to a flight crewmember who is taking a rest period as defined in Title 14 CFR Part 117 (and not at the controls.)

Note also that vanzandt said "part D." It's not part D, it's subpargraph (d). Big difference in the federal regulatory world. But I got his meaning.

Best

P.s. Since this is an Options discussion board it may be helpful to you to know that Options are also heavily regulated under the Code of Federal Regulations (CFR). For example the CFTC regulates commodity options IAW various parts of Title 17 CFR (e.g. Parts 3, 32, etc.). The SEC does equity options also under Title 17 CFR. One must also consider the self regulatory bodies such as the NFA, FINRA, etc. They're like the foxes guarding the hen houses. They give the Jon Corzines of the world some cover to do the deeds that they do.

Yeah, part D is for Medicare.... speaking of which....

... what do the FAR's say the mandatory retirement age is these days? You sure you're not flying from DC to Tokyo in a sim?

 

[JBM]

I think the mic just got dropped from 36,000 feet...

Back to the case, I am looking into the options but very conservative on the sell side only. I have been doing cash secured puts and covered calls for about 2 years (sexy I know), but I have garnered close to 20-30% return each year, as I maintain the position have a high prob of 70% or so. When I do that I look at the tech analysis and the option statistics and make a closer OTM if I feel that the market will go a certain direction. I have a good amount of capital but I am trying to make it where I can be part time trader full time dad vice my current job where I am working 10-12+ hours each day.

I have been reading up a lot about the aspects of the market, and I am learning to like the strategies that have the known risk from the placing of the trade. I will make my transition once my wife clears her ATC probation period.

 

[ironchef]

My routine? Well, my hours are rarely 9-5 but I am able to work from both home and the "office". Some months, for example, I work a 5am-5PM shift (Chicago Honolulu), other months 7PM-7AM (e.g. a 7 hour flight from New York to London) , and so on. Now I am working longer hours, routinely 14-16 hours a day. The length of time, roughly, that it takes my co-pilot(s) and I to get our Boeing 777 from Washington DC to Tokyo or Shanghai. Since our airplanes are WiFi, I can trade enroute too.

Because of the weird hours I keep I chose to trade the E-mini S&P options contracts (/ES). They trade, as others have pointed out, 23+ hours a day. Although the volume can be pretty thin in the wee hours of the morning (U.S. time). What I like about the /ES options is that they're very liquid, use the CME's SPAN system for risk analysis and margin determinations (lower margins than equity options), tight bid/ask spreads, offer EOM, Weeklys, and Serial options chains, and I can trade them from any of my iDevices, everywhere I fly. Also, the /ES options are not subject to the SEC's Pattern Day Trading rules. You can day trade the /ES with an account of less than the $25K required for equity day traders. I use ThinkorSwim as my trading platform, I probably could do better than that but it works for me. I don't generally day trade. Most of the time I keep a trade until time/Theta has worked her magic which means holding a position until expiration or until I can take 75% of my profit off the table at which time I close out the short and let the long ride (just in case.)


Best

I don't think you depend on the profits from your trades to put food on the table.

That said, I like your strategy.

Regards,

 

[JBM]

So if you were trade independently and be conservative (no naked puts on the vix etc) what would be the best security to trade on. I saw the futures of the indexes allow for a tax "benefit", more liquidity, and more trading hours. What are the drawbacks for those future options?