Need a quick lesson on E-Minis

Originally posted by rs7

I understand the problems you encounted with options.

I recommend reading Options as a Strategic Investment...by Lawrence McMillan. He has other books as well, but OSI is the standard "textbook".

Customer margin requirements and high commisions make most strategies impractical.
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Thanks for the post rs7...it's nice to hear from guys who've
"been there-done that".

I have the McMillan book, and yes, you're right about the
commissions making a lot of strategies impractical for the
off-floor trader.

I always thought some of the bull/bear spreads looked
interesting, but back when I was into options, commissions
were something like $20 a side, so I didn't mess with it.

Still, I've always been fascinated with options,and my favorite play is still the "Naked Combo"!

:p
 
Originally posted by Breakout



Thanks for the post rs7...it's nice to hear from guys who've
"been there-done that".

Still, I've always been fascinated with options,and my favorite play is still the "Naked Combo"

:p
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The firm I worked for on the CBOE loved the naked combos too....but when they went wrong....they were DISASTERS!!!

My favorite.... backspreads....too bad I don't have the kind of cap I had in those days....an event like sept. 11....could have retired rich. Naked combos would have been killers then. (not implying i would want a sept. 11....let me tone it down to an unexpected cut in rates or something like that...the crazy swings when they were doing florida recounts off and on, etc.).
Naked combos cause loss of sleep. High percentage play usually, but oh those losers!!!!:(
 
Originally posted by rs7

The firm I worked for on the CBOE loved the naked combos too....but when they went wrong....they were DISASTERS!!!

My favorite.... backspreads....too bad I don't have the kind of cap I had in those days....an event like sept. 11....could have retired rich. Naked combos would have been killers then. (not implying i would want a sept. 11....let me tone it down to an unexpected cut in rates or something like that...the crazy swings when they were doing florida recounts off and on, etc.).
Naked combos cause loss of sleep. High percentage play usually, but oh those losers!!!!:(
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I hear ya...it's those damn opening gaps. lol
 
Originally posted by Breakout



I hear ya...it's those damn opening gaps. lol
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Yes, but those gaps can do you in with any vehicle (or make you a bundle if they go your way)
 
I prefer the futures to options ONLY because the time decay factor is a variable that I always had difficulty dealing with properly.
 
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