Tuesday, November 2, 2010

Analyzing Long Options Strangles from All Angles | Trade Options Like a DPM Webinars #6: Strangles

Analyzing Long Options Strangles from All Angles | Trade Options Like a DPM Webinars #6: StranglesSocialTwist Tell-a-Friend
http://hamzeianalytics.com/pow_register.asp - The Admiral, a former CBOE designated primary market maker, breaks down the long options strangle strategy. He shares many considerations and ideas about putting together a options strangle position, and analyzing possible outcome scenarios so traders can be prepared. Fari Hamzei adds his market timing and technical analysis expertise.

This a Q&A excerpt from "Trade Options like a DPM Webinar #6: Strangles" - http://hamzeianalytics.com/pow_register.asp



"STRANGLES" OPTIONS WEBINAR DESCRIPTION (October 20, 2010, 1800 CT)

An options strategy where the investor holds a position in both a call and put with different strike prices but with the same maturity and underlying asset.


ABOUT "THE ADMIRAL"

The featured speaker, whom we affectionately call "The Admiral," was a Designated Primary Market Maker (DPM) on the floor of the CBOE for five years. Although we're not using his real name (so don't ask!) suffice it to say that we consider him to be one of the most knowledgeable option traders on the planet. As a floor trader in the '80s and '90s he did the opening options rotation for 5-25 stocks the old-fashioned open outcry way—meaning he opened each option strike price for each of these stocks within the first 30 minutes of trading, both calls and puts.

That meant he had to price more than 500 option strikes, plus as a market maker he traded and kept the markets current. As a DPM, technology brought forth auto-quoting of option series, but pricing of those quotes remained his responsibility. Trading 1 million shares of stocks and 50,000 options contracts was a normal day for him. In 27 years at CBOE, he has traded through the crash of '87, the smaller crash of '90 and the tech bubble in 2000. He has traded three-digit volatility and seen every possible market environment imaginable. So, if you're going to learn options, it might as well be from the very best.

Sunday, October 31, 2010

Strategy Session: Amazon (AMZN) Earnings Options Trade Analysis | Options Like a DPM Webinars #6: Strangles

Strategy Session: Amazon (AMZN) Earnings Options Trade Analysis | Options Like a DPM Webinars #6: StranglesSocialTwist Tell-a-Friend
http://hamzeianalytics.com/pow_register.asp - Usually Fari and the Admiral analyze and design options trades behind the scenes, then sends out the trade idea to Hamzei Analytics HFT subscribers when the trade is ready to be entered. During the Q&A of this webinar, Fari and the Admiral decide to show they put their heads together for high impact news driven trades - this time the AMZN earnings to be announced the day after this webinar.

This a Q&A excerpt from "Trade Options like a DPM Webinar #6: Strangles" - http://hamzeianalytics.com/pow_register.asp



"STRANGLES" OPTIONS WEBINAR DESCRIPTION (October 20, 2010, 1800 CT)

An options strategy where the investor holds a position in both a call and put with different strike prices but with the same maturity and underlying asset.


ABOUT "THE ADMIRAL"

The featured speaker, whom we affectionately call "The Admiral," was a Designated Primary Market Maker (DPM) on the floor of the CBOE for five years. Although we're not using his real name (so don't ask!) suffice it to say that we consider him to be one of the most knowledgeable option traders on the planet. As a floor trader in the '80s and '90s he did the opening options rotation for 5-25 stocks the old-fashioned open outcry way—meaning he opened each option strike price for each of these stocks within the first 30 minutes of trading, both calls and puts.

That meant he had to price more than 500 option strikes, plus as a market maker he traded and kept the markets current. As a DPM, technology brought forth auto-quoting of option series, but pricing of those quotes remained his responsibility. Trading 1 million shares of stocks and 50,000 options contracts was a normal day for him. In 27 years at CBOE, he has traded through the crash of '87, the smaller crash of '90 and the tech bubble in 2000. He has traded three-digit volatility and seen every possible market environment imaginable. So, if you're going to learn options, it might as well be from the very best.

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