Options trading

[aristotle]

Can anyone recommend a good online broker for trading options? I really don't want to be pressured by discount rates based on quota trading, ala Etrade. Checked out OptionXpress, and a few other full service brokers. I'm looking for the best overall options broker in terms of price/contract, reliability, and diversity.

Anybody knowledgable hogvillians on the matter?

[Masshog]

I have a buddy who trades options from home.  I will try and talk to him in the AM and see who he clears through.  I spent years trading options and designing strategy (mostly on futures and mostly for hedges).  If you ever have any questions feel free to PM me. 

[aristotle]

I have a buddy who trades options from home.  I will try and talk to him in the AM and see who he clears through.  I spent years trading options and designing strategy (mostly on futures and mostly for hedges).  If you ever have any questions feel free to PM me. 

Thx man, I probably will. Let me know what site he uses if you get a response. Looking at LEAPs probably....trying to find a good place to get started without leveraging the farm.

[Masshog]

Its a tough game for a beginner, so start slow.  Remember, you are buying a wasting asset and Theta can eat you up.   I am much more successful selling premium but in a very disciplined manner (futures stops in behind the option, wings added and so forth.  But,my experience with  stock options is pretty limited.

[aristotle]

Its a tough game for a beginner, so start slow.  Remember, you are buying a wasting asset and Theta can eat you up.   I am much more successful selling premium but in a very disciplined manner (futures stops in behind the option, wings added and so forth.  But,my experience with  stock options is pretty limited.

If you sell a call, you have to deliver the shares if they execute it, right? Or do your strategies prevent actual delivery of the shares if the call buyer wants them?

Like I said, I'm a novice trying to feel my way around right now. Your advice for starting slow will be well heeded.

[CampuspostmanHOG]

You probably have done some studying already but I saved this link from several years ago and thought I'd share it. It has some free courses and some pay ones.

http://www.21stcenturyinvestoreducation.com/

Here's another one for beginners:
http://www.tradingforbeginners.com/fl/l25/l25ar.html

[BlackKnightHogFan]

My advice, practice before you start.  If you win you will kick yourself for not being "real".  But, if you lose you will be glad you practiced.  I always consider opinions a zero sum game anyway.

[aristotle]

My advice, practice before you start.  If you win you will kick yourself for not being "real".  But, if you lose you will be glad you practiced.  I always consider opinions a zero sum game anyway.

I did that with currency trading for several months before I started a real account. Probably should have stayed demo a bit longer, but that was several years ago now.

And you are definitely right on options being a zero sum game. That will be my biggest struggle going in I think. Identifying which options are at a good premium vs duration. I know it will take a experienced eye and a demo account would be great for me to start on.

[aristotle]

Thanks for those links, campus.

Hey Blackknight, know of any demo accounts for option trading?

[CampuspostmanHOG]

Thanks for those links, campus.

Hey Blackknight, know of any demo accounts for option trading?

Here is a link that provides "virtual" accounts:
http://www.optionsxpress.com/welcome/tour/quotes/virtual.aspx?SessionID=

[PhillyHog]

If you haven't, check out John Hull's Options, Futures, and Other Derivatives...it's the bible.

http://www.rotman.utoronto.ca/~hull/

[novack2]

I trade with OptionXpress

[BlackKnightHogFan]

Thanks for those links, campus.

Hey Blackknight, know of any demo accounts for option trading?

Good question, I don't.  They are not my thing so I don't think I am the one to ask.  Risk is high so do your homework and be careful.

[Masshog]

My buddy uses options express.  Like the fills on the exchange traded options, but isn't crazy about the fills in the open outcry.  My guess is that as a novice, you will want to pretty much stick to exchange traded while you get your feet beneath you. 

[aristotle]

My buddy uses options express.  Like the fills on the exchange traded options, but isn't crazy about the fills in the open outcry.  My guess is that as a novice, you will want to pretty much stick to exchange traded while you get your feet beneath you. 

Thanks for the info and advice. I may PM you before I make a purchase. Going to try to find a demo account first to test myself.

[Masshog]

No problem.  I would be glad to help.