Tuesday, October 12, 2010

Straddles Trade Adjustment | Trade Options Like a DPM Webinars #5: Straddles

Straddles Trade Adjustment | Trade Options Like a DPM Webinars #5: StraddlesSocialTwist Tell-a-Friend
http://hamzeianalytics.com/pow_register.asp - The Admiral, a former CBOE Designated Primary Market Maker (DPM), answers in this webinar Q&A what to look for when considering a trade adjustment of a options straddle. When a trade has gone against you, action must be taken, and the Admiral explains what are the important factors in making that straddle adjustment decision.

This a Q&A excerpt from "Trade Options like a DPM Webinar #5: Straddles" - http://hamzeianalytics.com/pow_register.asp





"STRADDLES" OPTIONS WEBINAR DESCRIPTION (October 6, 2010, 1800 CT)

An options strategy with which the investor holds a position in both a call and put with the same strike price and expiration date.


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 10, 2010

How Analyst Recommendations May Affect Options Open Interest | Options like a DPM #5: Straddles

How Analyst Recommendations May Affect Options Open Interest | Options like a DPM #5: StraddlesSocialTwist Tell-a-Friend
http://hamzeianalytics.com/pow_register.asp - While answering a question about Ford (F)'s options high level of open interest, The Admiral, A former CBOE Designated Primary Market Maker (DPM), also explains how high open interests could be a phenomenon of analyst recommendations to retain traders such as through Charles Schwab. The Admiral says he has experienced times where the same types of orders flowed continuously when such analysts recommendations were made and, as a DPM, he could use options equalities to take the other side of the trade.

This a Q&A excerpt from "Trade Options like a DPM Webinar #5: Straddles" - http://hamzeianalytics.com/pow_register.asp




"STRADDLES" OPTIONS WEBINAR DESCRIPTION (October 6, 2010, 1800 CT)

An options strategy with which the investor holds a position in both a call and put with the same strike price and expiration date.


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, September 30, 2010

High Frequency Trading in Options Explained | Trade Options Like a DPM Webinars #4

High Frequency Trading in Options Explained | Trade Options Like a DPM Webinars #4SocialTwist Tell-a-Friend
As former CBOE Designated Primary Market Maker (DPM), The Admiral, explains what High Frequency Trading (HFT) is. Specifically, the admiral explains what the purpose of high frequency trading and how big firms like Goldman Sachs, JP Morgan, and Morgan Stanley take advantage of technology placed near the exchanges

This an excerpt from the "Trade Options like a DPM Webinar #4: Synthetics & Equalities -http://hamzeianalytics.com/pow_register.asp





"SYNTHETICS / EQUALITIES" OPTIONS WEBINAR DESCRIPTION

A financial instrument that is created artificially by simulating another instrument with the combined features of a collection of other assets. 


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.

Friday, September 24, 2010

Revealing HamzeiAnalytics Chat & Trader Social Networking Platform on MarketHEIST Interview

Revealing HamzeiAnalytics Chat & Trader Social Networking Platform on MarketHEIST InterviewSocialTwist Tell-a-Friend
During my interview on http://marketHEIST.com with Jeffrey Lin discussing crossing 20,000 twitter followers, I disclosed some details for the first time about our HA chat platform. The HA chat platform will integrate various social networks including twitter, facebook, myspace, etc and be accessible on mobile platforms too.


Thursday, September 23, 2010

20,000 Twitter Followers marketHEIST Interview Pt.2

20,000 Twitter Followers marketHEIST Interview Pt.2SocialTwist Tell-a-Friend
Second part of my interview with marketHEIST's Jeffrey Lin, talking more about my experience with using twitter as a trader.

Part 1 of our interview

Wednesday, September 22, 2010

Interview on marketHEIST.com for passing 20,000 Twitter Followers

Interview on marketHEIST.com for passing 20,000 Twitter FollowersSocialTwist Tell-a-Friend
Interview via Skype with Jeffrey Lin from marketHEIST.com discussing the journey on twitter since signing up in April 2009

Part 1: Passing 20,000 Twitter Followers

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.

Monday, August 30, 2010

Dollar-Weighted Put Call Ratios Explained (8/1/10 Market Timing Webinar excerpt)

Dollar-Weighted Put Call Ratios Explained (8/1/10 Market Timing Webinar excerpt)SocialTwist Tell-a-Friend
Our Real Time Put Call Ratio screens show actual volume of calls & puts, dynamically updated throughout the day. Sorted by each column, both simple & dollar weighted ratios are displayed.

As a trader, speculator or investor, it is important to have access to all of the tools that the professionals have. The Real Time Put Call Ratio is one of those tools, providing valuable insight into overall market sentiment. Now, Hamzei Analytics' Real Time Put Call Ratio gives you a leg up on the market, letting you see where the action is before the news leaks it out.



Learn more about the Hamzei Analytics Real-time Put/Call Ratios here: https://www.hamzeianalytics.com/tutorial_real_time_put_call_ratio.asp
There are many schools of thought on what exactly is a bullish ratio and what is a bearish ratio. Generally, the simple put call ratio of 1.5 on an index is used as the level of relative neutrality. Anything higher than that is considered bullish and anything lower is considered bearish. The dollar-weighted ratios vary from index to index and each index historical norms need to be referenced for proper deduction.

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