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Strategies & Market Trends : Canadian Options

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To: Robespierre who wrote (1515)4/18/2000 11:18:00 AM
From: Digital-Fluid.com  Read Replies (2) of 1598
 
How to improve liquidity

Why is the Canadian options markets so illiquid? Even Canadian stocks have more choices and a lot more volume in the US options markets.

Putting an order between the bid-and-ask on the Canadian option market is like watching paint dry as nobody else is on the other side to tighten the unreasonably wide spreads. The crooked spread is even worse than the CDN OTC market and the old Nasdaq (before daytraders and arbitrageurs like Robespierre improved the spread). I would put in a better price than the CDN OTC market maker, but the crook won't even post my order and will later get bypass my better offer because the opposite order did not exactly match my order size.

When will the Canadian options markets have an education program about all the benefits of options. I went to the Financial Forum, and none of the Canadian institutions have any material about options, but the CBOE was there and had presentations, booklets and videos. The potential for the Canadian options market is huge, but few Canadians are being informed about no-brainer benefits such as buying covered calls for their conservative RRSP holdings.

Despite all the unfair disadvantages, I have always made money in my put and call options (so far).

P.S. Congratulations to Robespierre for standing up to the incompetent specialist and Nesbitt Burns. Thanks also to Porter for his educational insider posts.
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