QQQ Sep Puts
- Thread starter TimtheEnchanter
- Start date
The payout is only 5.62% on an annualized basis. Not good for the risk you're taking if you're the writer.
Yaz is a billionaire,as is a couple of his college buddies..
There is another guy who left Susquehanna trading his own capital who was/is well on his way
There is another guy who left Susquehanna trading his own capital who was/is well on his way
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who is yaz.
edgie prob made a few hundred before he blew up in 2011
I know the other guy. But not sure how much he’s actually making.
So btw, what’s the risk on owning QQQ at 10% discount? Most people are chasing and dreaming of owning QQQ or SPY at prices from last year. Others are buying real estate hoping for 4% return, probably with similar risk of ending up with a loss of value on their property. While everyone is desperately searching for any place to put their money. Some can do better, but getting 5.6% with a risk of buying QQQ at 10% discount may sound like a dream investment with no risk
I have a video to post about that, but I digress.
@newwurldmn, @taowave , I'm genuinely interested in this topic, meaning trading equity options with risk (not market-making). I was assuming there are plenty of funds and traders trading equity options, indicated by quite large OI & volume on expensive names with underlyings priced over $1K (from SHOP to AMZN).
I think it's common knowledge there are plenty of SPX options strategies being auto-traded (at least when we hear about funds being blown up), but once you have the technology to trade any options then you could expand to equities. And if one guy could make it then there may be others.
So I'm curious what's actually known about various large $billion+ funds in terms of trading equity options? From your comments it may sound like no one touches them?
I think it's common knowledge there are plenty of SPX options strategies being auto-traded (at least when we hear about funds being blown up), but once you have the technology to trade any options then you could expand to equities. And if one guy could make it then there may be others.
So I'm curious what's actually known about various large $billion+ funds in terms of trading equity options? From your comments it may sound like no one touches them?
I would be the buyer of the spread.
What does open interest signify for you?
Open interest doesn’t make much sense to me in highly liquid underlyings.
But in less liquid UI’s where let’s say the $100 strike has 50,000 open contracts and the $90 strike has 3k, then that peaks my interest. As far as it’s use, I just gauge where the money is flowing in and out, which is all I do really. Peep the various prices across the distribution that have higher trading activity (value areas) and predict price @ time.
Open interest doesn’t make much sense to me in highly liquid underlyings.
But in less liquid UI’s where let’s say the $100 strike has 50,000 open contracts and the $90 strike has 3k, then that peaks my interest. As far as it’s use, I just gauge where the money is flowing in and out, which is all I do really. Peep the various prices across the distribution that have higher trading activity (value areas) and predict price @ time.