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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: J. P. who wrote (59237)8/3/2002 12:57:03 AM
From: Saita  Read Replies (1) | Respond to of 94695
 
< Bid/Ask spread is only 1/2 to 1 tick (6-12 dollars)

No, don't even dream about it....
At least 1 tick on index futures, if you have right electronic platform. Form 1 to 2 ticks realistically.
Always 1 tick, at least, on interest rate futures and unlimited slippage if trade anything in NY-);

<4) You cannot really set stops with options, with futures you can set very tight stops.

Stop order became market one after your price was hit.
Your order would then be executed as market order.
If market fast you will get a dozen or two ticks over your stops.
Don't fool yourself.

Sergey T
CTA



To: J. P. who wrote (59237)8/3/2002 5:06:45 PM
From: Real Man  Respond to of 94695
 
The fact that there is time premium does not make trading options different from trading futures - there is a marketplace, and options are sold so that there are no arbitrage or easy profit opportunities. There are just more variables that influence options prices than futures prices, and when these variables are misjudged by the market, you have an opportunity. Then again, they are almost never misjudged, so there you go, it's never easy -g-


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