Trade Options Like a DPM Webinars with The Admiral: Intro & What's a Designated Primary Market Maker

Tweet Trade Options Like a DPM Webinars with The Admiral: Intro & What's a Designated Primary Market Maker

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.

Market Timing Charts Review

Tweet Market Timing Charts Review

We are on track to get to 1113 on SPX (200 bar MA and +2 sigma confluence). NYSE MO at +244 is too high,

we are slightly overbought, a small pullback is in order.

Notice DJ Trans strong up thrust [and channel breakout] was followed by RUT channel breakout.

This is all good for the bulls.

Notice the direction of our CI Indicators on VXO and VXN.  Our target for VXO is 17 (neg 3 sigma).

Our coveted SP1_MoMo Indicator shows SPX Advancing vs Declining Issues are thrusting upward.  MoMo is nearly magic 10 number.  We should expect a pull back first before resuming upward further.

Percent of SPX Components over their respective 200-Day MAs is now over 55% now and it is over its 50bar. This is all good for the long side.  Like to see this number over 70%-75%.

SPX 2010 is way behind its 2007 Analog but indicators are relatively strongervs their analogs.

Notice the low put/call readings.  This is good for the bulls.

Poll: HA Options Webinar Series Featuring The Admiral

Tweet Poll: HA Options Webinar Series Featuring The Admiral

Help us create this options educational webinar so it will help you the most.  Please fill out the poll below.

Trade #Options Like a DPM Webinars

Tweet Trade #Options Like a DPM Webinars

with The Admiral Wednesday 1800 CT http://bit.ly/aNJvTu

[DPM = Designated Primary Market Maker] 

Updated SPX Analog 2010 vs 2007 Chart

Tweet Updated SPX Analog 2010 vs 2007 Chart

http://yfrog.com/12lgvp

for usage explanation need to watch tonight's webinar http://bit.ly/1VjQwW

Trading TF Webinar

Tweet Trading TF Webinar

The incredible TF Trading Webinar with our SuperWoman @JT707 is now available for your review http://bit.ly/7Fnxe

We will add her Slides shortly

Do not miss her section on "War Chest" -- it is a key to your trading success

an interview with Jeffrey Lin of marketHEIST.com

Tweet an interview with Jeffrey Lin of marketHEIST.com

Fari Hamzei on Building a Twitter Following & HFT Real-Time Trading Service http://bit.ly/d6c5hi

Market Timing Charts Revisited as of Friday Close, February 26th, 2010

Tweet Market Timing Charts Revisited as of Friday Close, February 26th, 2010

Fari Hamzei

With the last week of trading for February behind us, the technical picture has not changed much since my last Market Timing Webinar last Sunday.

Next Friday, the Feb NFP will be published by BLS and should provide us some fireworks.  I expect a number around -50K for Feb NFP.  Until then, market should trade in a tight range for the next four days with a slight up bias (look at the CIs below in the Timer Chart and candlestick hammer put in on SPX on last Thursday, with low of its wick touching zero sigma).

Vols Chart chart confirms that (failure for VXO, VXN to get over their respective zero sigmas -- the yellow line).

And, last but not least, our coveted SP1 Indicator is in the +1 to +2 sigma channel (ideal up bias zone) for now.

Market Timing Charts Revisited -- as of Friday Close, February 5th, 2010

Tweet Market Timing Charts Revisited -- as of Friday Close, February 5th, 2010

Fari Hamzei

I had one of the greatest trading weeks in a while.  IMHO, more than once, I got very lucky.  These charts & comments were posted earlier today on our Open Twitter Feed ( http://twitter.com/hamzeianalytics ).

Let's start with our Timer Chart.

Notice the "Hammer" candlesticks with very low McClellan Oscillators readings after down/up volume ratio spike day (Thursday).  And both CIs are GREEN with NAZZ's having a flat slope -- most likely Monday will be an UP day IMHO.  Also worth noting is that SPX bounced off of MS1 (monthly support one) while trading below -2 sigma during Friday RTH.

Above is Vol of the Vols Chart with an intraday spike of VXO to +3sigma and VXN to +2sigma.  It was nothing out of ordinary, when we take into account the intraday volatility and range of the preceding few sessions and then Friday being Jan NFP (historically a high risk/high reward trading day).

Our coveted SP1_MoMo Chart: when we look carefully, we see a weak bullish divergence here between MoMo vs SP1, further vouching for a small dead cat bounce here.

% of SPX Components above their respective 200 Day MAs in the chart above is sinking fast. IMHO, for now, the PATH OF LEAST RESISTANCE is **DOWN**.

See you all in the morning - bright and early -- Go Saints Go !! 

Market Timing Charts Revisited -- as of Friday Close, January 29th, 2010

Tweet Market Timing Charts Revisited -- as of Friday Close, January 29th, 2010

Fari Hamzei

Here is our Timer Chart with NYSE McClellan Oscillator closing the week at -286, 7thday in the row below the negative 150 oversold threshold.  We keep on reminding ourselves that a short/term bounce, albeit a dead cat bounce, should be near.  Notice NASDAQ Volume MO is also pretty nasty -- many names being punished despite of good [/quality] earnings.  Yet we have not seen a volume spike.  Even with a dead cat bounce, the selling should resume till we see capitulation.  Next stop for SPX should be its 200-bar moving average (which is a fast moving target here).  IOHO, maybe around 1020.  SELL THE RALLIES.

As far as vols are concerned, the ROC of Vols have slowed down but now lining up into a clean and rising +1 to +2 channel upward channels.

The % of SPX components over their respective 200 bar MovAvg chart needs no explanation.  KIDs are running for the hills.  Hearing IPO windows tightening up, private equity and VCs boyz are getting a bit nervous.  It is still early.

Our coveted SP1 MoMo Indicators getting a real Royal Flush.  Long Term [Modified] Breadth (SP1) looks worse than it did at October lows, while Short Term [Modified] Breadth (MoMo) does not.  This tells us a strong push down, after a dead cat bounce (should we be lucky to witness it), is a must somewhere here.  Next big news day, is this coming Friday Feb 5th (Jan Non-Farm Payroll at 0730 CT), could well turn out to be the Mother of All NFPs.  Small accounts should step aside and stay on sidelines.

Bottom Line:  Washington Policy Makers are dueling it out on weekend news programs. We were very happy to see Dr. Ben Bernanke finally was confirmed to serve another term at The Temple.  (This is a great read http://bit.ly/ErrJ0 ).

Both intraday and long term Vols are rising and we are seeing some trending days.  This is day traders paradise.  We are in heavens.  Brokers and Sausage Makers are not so lucky.