Showing posts with label Designated Primary Market Maker. Show all posts
Showing posts with label Designated Primary Market Maker. Show all posts

Monday, September 20, 2010

Options Time Spread, Jelly Rolls, and Reversals with Goldman Sachs (GS) | Trade Options Like a DPM Webinars #3

Options Time Spread, Jelly Rolls, and Reversals with Goldman Sachs (GS) | Trade Options Like a DPM Webinars #3SocialTwist Tell-a-Friend
http://twitter.com/hamzeianalytics - The Admiral, a former CBOE Designated Primary Market Maker (DPM), continues his lesson on calendar spreads by demonstrating an advanced use of structuring time spreads as jelly rolls.  He extends the example a bit further, taking advantage of risk reversal strategies mentioned in a previous lessons to construct options positions with essentially no-risk (or riskless money).

This an excerpt from the "Trade Options like a DPM Webinar #3 - Calendars/Time Spreads: http://hamzeianalytics.com/pow_register.asp



"CALENDARS & TIME SPREADS" OPTIONS WEBINAR DESCRIPTION

An options or futures spread established by simultaneously entering a long and short position on the same underlying asset but with different delivery months. Sometimes referred to as an interdelivery, intramarket, time or horizontal spread.


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.

Options Time Spread VMW Example | Trade Options Like a DPM Webinars #3: Calendar Spreads

Options Time Spread VMW Example | Trade Options Like a DPM Webinars #3: Calendar SpreadsSocialTwist Tell-a-Friend
The Admiral, a former CBOE Designated Primary Market Maker (DPM), continues his first example of implementing an options time spread using VM Ware (VMW) as the sample underlying stock.  The Admiral goes through each step of identifying the trade and the potential targets for the underlying stock, finding the option months and strikes, constructing the time spread, and analyzing the time spread.



This an excerpt from the "Trade Options like a DPM Webinar #3 - Calendars & Time Spreads: http://hamzeianalytics.com/pow_register.asp


"CALENDARS & TIME SPREADS" OPTIONS WEBINAR DESCRIPTION

An options or futures spread established by simultaneously entering a long and short position on the same underlying asset but with different delivery months. Sometimes referred to as an interdelivery, intramarket, time or horizontal spread.


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.

Options Time Spreads Basics Excerpt | Trade Options Like a DPM Webinars #3: Calendar Spreads

Options Time Spreads Basics Excerpt | Trade Options Like a DPM Webinars #3: Calendar SpreadsSocialTwist Tell-a-Friend
The options calendar spread, or time spread, was the first options spread The Admiral, used when he first became a market maker on the floor of the CBOE.  In this excerpt from the "Calendars" Options Webinar presentation, The Admiral explains the basics of a calendar spread, how to price a calendar spread, and the relatively low-cost and low exposure to deltas.



This an excerpt from the "Trade Options like a DPM Webinar #3 - Calendars & Time Spreads: http://hamzeianalytics.com/pow_register.asp


"CALENDARS & TIME SPREADS" OPTIONS WEBINAR DESCRIPTION

An options or futures spread established by simultaneously entering a long and short position on the same underlying asset but with different delivery months. Sometimes referred to as an interdelivery, intramarket, time or horizontal spread.


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.

Thursday, August 5, 2010

How Mark Cuban Locked in His Enormous Yahoo Fortune: Options Risk Reversals | Trade Options Like a DPM Webinars with the Admiral #1

How Mark Cuban Locked in His Enormous Yahoo Fortune: Options Risk Reversals | Trade Options Like a DPM Webinars with the Admiral #1SocialTwist Tell-a-Friend
The Admiral, a former CBOE Designated Primary Market Maker, tells the story of how Mark Cuban locked in his enormous fortune after selling Broadcast.com to Yahoo. While Mark Cuban was restricted from selling the Yahoo (YHOO) stock he got, he was able to keep the profits on Yahoo stock using risk reversal option strategies while Yahoo stock itself plummeted when the tech bubble burst.

This an excerpt from the "Trade Options like a DPM Webinar #1 - Covered/Buy Writes" Q&A session: http://hamzeianalytics.com/pow_register.asp

The Win-Win Scenario for Buy-Write Option Strategies | Trade Options Like a DPM Webinars with the Admiral #1

The Win-Win Scenario for Buy-Write Option Strategies | Trade Options Like a DPM Webinars with the Admiral #1SocialTwist Tell-a-Friend
The Admiral, a former CBOE Designated Primary Market Maker, illustrates the ideal scenario and market conditions for a buy-write options strategy with the Goldman Sachs (GS) example used throughout this webinar.

This an excerpt from the "Trade Options like a DPM Webinar #1 - Covered/Buy Writes" Q&A session: http://hamzeianalytics.com/pow_register.asp

How to tell when a Call or Put Option Will be Assigned | Trade Options Like a DPM Webinars with the Admiral #1

How to tell when a Call or Put Option Will be Assigned | Trade Options Like a DPM Webinars with the Admiral #1SocialTwist Tell-a-Friend
The Admiral explains the two main conditions when someone holding a call option or put option may be assigned the stock. He answers when and why will someone exercise an option. The Admiral is a former CBOE Designated Primary Market Maker (DPM).

This an excerpt from the "Trade Options like a DPM Webinar #1 - Covered/Buy Writes" Q&A session: http://hamzeianalytics.com/pow_register.asp

Key Trading Psychology: Admitting When You're Wrong & Taking Losses | Trade Options Like a DPM Webinars with the Admiral #1

Key Trading Psychology: Admitting When You're Wrong & Taking Losses | Trade Options Like a DPM Webinars with the Admiral #1SocialTwist Tell-a-Friend
The Admiral, a former CBOE Designated Primary Market Maker, explains the importance of humility in trading, the ability to take a loss, and reset with a clear head and start over.

This an excerpt from the "Trade Options like a DPM Webinar #1 - Covered/Buy Writes" Q&A session: http://hamzeianalytics.com/pow_register.asp

Saturday, July 31, 2010

Option Equality Synethics | Trade Options Like a DPM Webinars with The Admiral

Option Equality Synethics | Trade Options Like a DPM Webinars with The AdmiralSocialTwist Tell-a-Friend
http://twitter.com/hamzeianalytics - Who better to learn options trading from than one of the biggest and best traders to have ever traded on the CBOE floor? The Admiral is a 27-yr veteran of CBOE as with 5 years as a major DPM with a $800 Mil trading book. DPM stands for Designated Primary Market Maker.



Register for this webinar series: http://www.hamzeianalytics.com/POW_Re...

In this webinar series, The Admiral will start off by going over the basics. During this first webinar, The Admiral touched on topics such as the volatility component of options, options an stock equalities, and synthetics.



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.

Option Greeks Intro: Delta | Trade Options Like a DPM Webinars with The Admiral

Option Greeks Intro: Delta | Trade Options Like a DPM Webinars with The AdmiralSocialTwist Tell-a-Friend
http://twitter.com/hamzeianalytics - Who better to learn options trading from than one of the biggest and best traders to have ever traded on the CBOE floor? The Admiral is a 27-yr veteran of CBOE as with 5 years as a major DPM with a $800 Mil trading book. DPM stands for Designated Primary Market Maker.



Register for this webinar series: http://www.hamzeianalytics.com/POW_Re...

In this webinar series, The Admiral will start off by going over the basics. During this first webinar, The Admiral touched on topics such as the volatility component of options, options an stock equalities, and synthetics.



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.

Disclaimer and Terms of Service

© Copyright 1998-2023, Hamzei Analytics, LLC. Hamzei Financial Network is published by Hamzei Analytics, LLC, Naples, FL 34112, Admin@HamzeiAnalytics.com (310) 306-1200. The information herein was obtained from sources which Hamzei Analytics, LLC believes are reliable, but we can not and do not guarantee its accuracy. None of the information, advertisements, website links, or any opinions expressed constitutes a solicitation of the purchase or sale of any securities or commodities. Please note that Hamzei Analytics, LLC or its principals may already have invested or may from time to time invest in securities or commodities that are recommended or otherwise covered on this website. Neither Hamzei Analytics, LLC nor its principals intend to disclose the extent of any current holdings or future transactions with respect to any particular security or commodity. You should consider this possibility before investing in any security or commodity based upon statements and information contained in any report, post, comment or recommendation you receive from us. The content on this site is provided as general information only and should not be taken as investment or trading advice. Any action that you take as a result of information, analysis, or conclusion on this site is ultimately your responsibility. Always consult your financial adviser(s) before making any investment or trading decisions.