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I think if you are going to be real active in OEX and you are going to be doing
anything other than machine order it would be best to use a firm that has it's
own brokers on the CBOE floor. Anybody can do machine orders(and you would want
to ask your broker what their machine parameters are)and the only issue is
price. For non machine orders most discount brokers do not have their own team
... they use $2 brokers called correspondent brokers at CBOE. Using
correspondents is OK because it gives a small firm with modest resources access
that they wouldn't otherwise have. However when push comes to shove having your
own staff means that the order gets there a hair quicker and gets processed by
someone working for your broker.
Ask them what their relationship for brokerage is at CBOE and are they a
correspondent? Also a correspondent firm may have higher costs as it is paying
someone to execute on a contract by contract basis. Where, IMHO, a correspondent
firm may have less edge is for large orders where anything other than a simple
limit is requested.
TBTesser@xxxxxxx wrote:
> Anyone with any experience with R.F. Lafferty as an options broker? I will
> be trading the OEX buying puts/calls at extremes.
>
> Any other recommendations?
>
> Thanks in advance!
>
> Eliot
>
> I have traded OEX options for the past dozen + years off and on. I used to
> write naked strangles until the 1987 crash scared the pants off of me. I then
> wrote covered spreads for several years. I now trade the long side very
> occasionally. Lafferty, in my opinion, is beyond a doubt the best options
> broker I have ever used. They are specialists, especially in OEX options.
> They used to help me get the extra 1/8th in putting spread limit orders in,
> and when you write covered spreads that is important. The person I use there
> is Jay Shartsis and I highly recommend him.
>
> Ted Tesser
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