The options market seems untradeable now

[.sigma]

@.sigma, I obviously cannot post any actual trades here but Sig mentioned something similar regarding acting as a market maker - that's what "trading the spread" actually is. You take advantage of the wildly fluctuating and wide spreads that exist, to buy at one price and close quickly at a slightly higher price.

I realise this response is probably more annoying than useful, and there's nothing more irritating than someone saying "I made money yesterday on a trade but I'm not gonna tell you what trade and how". But you understand that if anyone reveals the stock, and the trade type, then a 100 other people from here will try the same thing and the game is over.

In terms of fly's - yes, this is a great time to open them. I trade them on SPX only at the moment. I like the cash-settled nature and the European expiry stytle. Theta decay and vol reduction are friends; large movements of the underlying are the foes.

Happy trading.

Okay.... I understand MM and their books, I’m wondering how a retail trader can “trade the spread” and I don’t mean just buying the bid/selling the offer.

Ive been mostly trading flys as well, not so much on SPX, more on single names. There’s much more opportunity for me at least in the single names

 

[.sigma]

Individual stock within the US SP500.

iron there’s 500 entities within the spooz...

 

[Tony Optionaro]

I found that you can make money fast money like market maker but its more so just being lucky and happens from time to time. Like Ill open a position and close it a minute later for a large gain but I just got lucky its not something that I can count on making money on. that being said you have to be out there to be lucky.

Exactly what was the part where you traded like a MM?

 

[ironchef]

iron there’s 500 entities within the spooz...

I don't really want to name names. Let's just say they are not the well known big caps techs.

OK I will name one since I mentioned it elsewhere: GILD.

 

[Bekim]

Exactly what was the part where you traded like a MM?

Let me rephrase, not like a MM but making money on the spread

 

[JesseJamesFinn1]

Having fun trading stocks like HTZ, PENN, CAR, RCL,HLT, NCLH and MAR. Why not follow highly liquid s"

I wanted to add a bunch of stocks I bought below $5, rules did not allow this. I bought ARI, RWT, FDUS, BXMT, EDF, TCPC, and more after the Fed said they were buying paper. If you can trade Apple or NVDA, smaller NYSE and Nasdaq stocks are alot easier to be a Market Maker in.

 

[.sigma]

I don't really want to name names. Let's just say they are not the well known big caps techs.

OK I will name one since I mentioned it elsewhere: GILD.

why not mention though, is it some NDA thing?

 

[ironchef]

why not mention though, is it some NDA thing?

Why? Because I am just a struggling mom and pop retail, no formal financial training, not selling courses, subscription or soliciting OPM.

If it is a good list, folks will accuse me of making it up after the fact, demand to see my "audited" broker account, want it "time stamped", for proof. If it is bad, I get eggs on my face and folks will laugh at my stupidity. No win either way.

 

[JesseJamesFinn1]

Why? Because I am just a struggling mom and pop retail, no formal financial training, not selling courses, subscription or soliciting OPM.

If it is a good list, folks will accuse me of making it up after the fact, demand to see my "audited" broker account, want it "time stamped", for proof. If it is bad, I get eggs on my face and folks will laugh at my stupidity. No win either way.

That's why I stopped posting my trades, I posted a $100,000 overnight and $50,000 Google short day trade, snippets of brokerage trades only to get hammered. No more, learned my lesson well.

 

[ironchef]

That's why I stopped posting my trades, I posted a $100,000 overnight and $50,000 Google short day trade, snippets of brokerage trades only to get hammered. No more, learned my lesson well.

Hang in there, I hope you keep posting.

There needs to be a balance.

There are a lot of frauds out there (and here) preying on desperate traders like me, selling snake oils, get rich quick schemes. In the past, many of us fell for it hook, line and sink. I applaud those tireless posters exposing many of them saving us from potential ruin.

Some masqueraded as expert traders, posting "winning" trades not to sell stuff but to live out their fantasy. Those we can spot quickly and I would leave them alone since they are harmless.

So, in general I don't understand the purpose of posting trades unless it is accompanied by a discussion of why those trades were made. The best such example was @TheBigShort posting an analysis of his trades on CELG and why he made those trades. I am forever grateful to him as it reinforced my own analysis of CELG, knowing a professional is agreeing with me gave me courage to execute my trades.

As a pay forward, a tribute to @TheBigShort, I posted trades I made related to CELG: BMY-RT, explaining why I did what I did.

Best wishes.