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I agree I preferred trading the OEX pre-split.
However, the behavior of the options in relation to
the underlying hasn't changed at all. EXAPMPLE: the
OEX split and the value of the options also split.
There has been no change in any of the beta, theta,
etc for the options.
The one problem that I have is: I trade at the money
or one strike price in-the-money. What cost me 15,
for example, not cost 7 1/2. My OEX inventory in
$30,000 per trade. Pre-Split I purchased 20
contracts. Not too difficult to get executed.
However now, post-split I am running 40 contracts,
very dificult to get executed.
I can't trade 2 or 3 strikes in-the-money because the
volume isn't there. One interesting question is:
What was the volume on an at-the-money option
pre-split, and what is it now, post-split?
Theoretically post-split volume should be
approximately double pre-split.
John
===
john@xxxxxxxxxxxxxx
Chi Wen Tzu used to think thrice before acting. The
Master hearing of it said, twice is quite enough.
-- Confucius
---Patrick Slevin <pslevin@xxxxxxxx> wrote:
>
> With all due respect to OEX traders, before the
split I was in and out
> of OEX positions 3 or 4 times a day.
>
> I never touch it now, I would rather trade SnP
futures. Splitting the
> OEX killed the trade for me. I suppose they did it
to make it more
> appealing to the average Joe/Josephine but I for
the life of me cannot
> fathom why anyone would risk their neck in this
environ.
>
> Not that I would ever touch it again, but would
anyone care to discuss
> the pros and cons of trading this dog?
>
> --PJS
>
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