Quick question about the SPY btw... Does anyone know on which exchange it does the most volume/ is most liquid?
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Market Calls
- Thread starter inandlong
- Start date
Quote from Rearden Metal:
I really need to re-activate my futures account. (I kind of retired when day trading hit the skids in early '03. To go from making 7-figures to barely scratching out 'regular guy money'- well, my heart just wasn't in it. Just started trading in earnest again a few months ago.) Have been scaling in and out of 200-400 SPY calls & 7000-16,000 SPY underlying.
Yes, I know futures would be better. Better tax rate & much more liquid than the options.
Well, that's good to know. Is there any success in trading b/w the two instruments in a risk arb. formula? You may have success with those figures but i imagine one would use more leverage.
FYI... I'll never retire from trading, ever. I think you and i both took a break around that time although mine lasted about six months and was self prescribed because i had too much on my plate and not because of lack of participation. Lately, it's been hard to not laugh at business proposals of associates and friends. In my world, things get done in seconds not days. Some people are such schleps it pains me. I have to meditate to be around such weak ideas and people. I need more trader friends in a bad way. Good luck to you. It seems you know how to grab hold of it and shake for all it's worth.
EDIT: AMEX should be doing at least 40% of the volume SPY and has hidden pools of liquidity. you can easily check this out for yourself to be sure from the listed exchange.
EDIT: only buy side imbalance now: 06/28/05 15:50 AAPL buy side imbalance of 62709 shares.
EDIT: i like the trading in XLE today. in this one tomorrow; will fade in and out until i get positioned and leveraged correctly to my advantage. thanks.
I don't look for pure risk arb plays, but sometimes when someone needs to fill size, the options markets get out of line for a few seconds. Example- Lets say the option (Doesn't matter if it's a put or a call, but it must be liquid- Ideally over 5,000 contracts volume/day ) is 0.60 bid, 0.70 offer for about half an hour. The underlying isn't moving. Suddenly someone puts a large buy for 1000 contracts at the ISE at 0.70. He takes the entire existing offer (say, 400 contracts), and the remainder is bid at 0.70, crossing the market. At that point, It's a race of me vs. all the other players to hit that 0.70 bid. If successfully filled, the idea is to put in a 0.65 bid right away, and hopefully get filled within a few minutes.
Not really risk arb, but that's the closest I get.
Edit: Yeah, My size is a mere fraction of what it used to be. Back in the late 90's I had huge OPM to work with, now I'm trading mostly my own money. I posted here about the time I took a $2,500,000 hit in about five minutes on Jan 3, 2001 (Surprise rate cut, first in cycle, no fed meeting that day). I can't take that kind of hit on my own money!
Not really risk arb, but that's the closest I get.
Edit: Yeah, My size is a mere fraction of what it used to be. Back in the late 90's I had huge OPM to work with, now I'm trading mostly my own money. I posted here about the time I took a $2,500,000 hit in about five minutes on Jan 3, 2001 (Surprise rate cut, first in cycle, no fed meeting that day). I can't take that kind of hit on my own money!
"Watching the 10400 area closely for a short on the YM.
It may be fast so I will post it now and report it when I can."
I reshorted YM at 10427.
It may be fast so I will post it now and report it when I can."
I reshorted YM at 10427.
Forgot to mention why. Resistance from the previous bottoms at this area and we are right at the 200 day ema.
http://stockcharts.com/def/servlet/...[dd][pc200!c50][vc60][iUb14!La12,26,9]&pref=G
http://stockcharts.com/def/servlet/...[dd][pc200!c50][vc60][iUb14!La12,26,9]&pref=G
Hello.
for newer traders....
please look over MON for a lesson in management risk and timing. you'll need to go back to early June and look over price action, volume, and company news/outlook/guidance to see how management played this quarters event and how maybe in the future you can play them.
be good.
alex
EDIT: i would not get too attached to this price level ($62.50)
we should see more exits at the close and next few days(about 11:00)
EDIT: late sell signal (which is my buy indication) on MON but i am NOT taking it.(MACD-MCDO-MCD-SIG)(about 11:15)
for newer traders....
please look over MON for a lesson in management risk and timing. you'll need to go back to early June and look over price action, volume, and company news/outlook/guidance to see how management played this quarters event and how maybe in the future you can play them.
be good.
alex
EDIT: i would not get too attached to this price level ($62.50)
we should see more exits at the close and next few days(about 11:00)
EDIT: late sell signal (which is my buy indication) on MON but i am NOT taking it.(MACD-MCDO-MCD-SIG)(about 11:15)
hmmm....
MAESTRO should be selling LYO Aug. 30 calls; they are only up 400%. nice action so far, but a chems company that hedges growth and earnings is bound to attract sellers no matter how much they can capitalize on this new proposal offer. it would pay to short this price action in the near term-imho.
MAESTRO should be selling LYO Aug. 30 calls; they are only up 400%. nice action so far, but a chems company that hedges growth and earnings is bound to attract sellers no matter how much they can capitalize on this new proposal offer. it would pay to short this price action in the near term-imho.