Starting out - What tools?

[nitro]

Arbing those butterflies might work, never tried that, but everything we make money on no one has ever heard of or popular belief is it can not be done.

Cool!

The biggest problem is identifying and hitting the leg(s) that make the trade work, and hitting them before they go away and then putting on the other legs.

Hoy, maybe not so cool. How long is the window that you got? I have a problem doing this on highly liquid equities sometimes!

The manual intervention rules have handicapped the upstairs trader in that regard; more risk to exotic arbs when you miss a leg, the spread will kill you taking off your opening legs to flatten out if you misidentify the order of execution. Retail commissions are going to hurt.

_EXACTLY_ I guess you are _NOT_ trading options by trading the whole "spread" as one trade - you are putting on the legs. This is a problem no matter what kind of trading you are doing tho, not just options

I think the best off floor option traders are the ones with the biggest balls.

Hehe. True of _ANY_ trading.

nitro

 

[metooxx]

Originally posted by nitro

Hoy, maybe not so cool. How long is the window that you got? I have a problem doing this on highly liquid equities sometimes!

usually not very long, seconds on average.