Weekly review
As the first exchange in Europe, the weekly index options were introduced by Euronext Liffe Amsterdam in 2006. Two years later the famous daily index options followed in 2008. Still a very successful product with good volumes. Unfortunately for Euronext most flow is executed on TOM these days.
After another two years the weekly options on the major stocks (RD, ING, Mittal etc) came to life in 2010. Pretty boring, not much volume. Transaction costs for retail investors are blocking healthy trading in these weekly’s.
Lifetime of two weeks
Next week new weekly options will be added in the index and single stocks. The lifetime will be extended to two weeks. Options with maturity of two weeks will be introduced as from October 25th (source). This means usually there will be expiration for three fridays in a row (also including regular monthly options). Of course, TOM follows Liffe.
With DeGiro weekly stock options suddenly make sense
As you may remember – there’s a new contender in the broker market. DeGiro will only charge 85 cent per option contract, making it worthwhile to trade weekly stock options. You have got to be a little patient, as DeGiro is only adding weekly options to their product list this week. Daily options will follow next week.
DeGiro still has the looks of a “Rumanian version of a Lidl supermarket“, with difficult navigation and a clumsy helpdesk – but we should give them some time. They’re running a low cost operation using the ABN AMRO Clearing network and memberships, and relatively low tech. No inhouse matching, involvement of HIQ or smart order routing – just straight execution.
I’ve been told TOM and DeGiro aren’t negotiating yet. I’m a big fan of fierce price competition. Hope DeGiro will get their stuff running. Good for the weekly options.
first!
i guess too much credit was being misplaced while assuming hiq would be hi-tech enuf to front run the flow
HAHAHAHA, “Rumanian version of a Lidl supermarket“
still a great job of those fellas by bringing down the tradingfees!!
all these walmart style stores for masses milk billions for their owners, not like you bottom feeders bending down to pick pennies
@11:39 Been in the coffee shops again?
Heard Tibra sacked bunch of their US and UK traders again today. It’s the second or third large round in last few months. Sinking ship. Heard bad management ran the US office into the ground. Only one desk left from about 8 or 9. Anyone have anymore info? When was last bonus paid?
I got an email from Tibra asking me if I was interested in joining their team in Chicago. what a joke. no idea who would want to work for them.
what’s walmart style billionaires vs bottom feeding penny pickers got to do with a coffee shop?
what team were you being invited to join? how did they get hold of your resume?
That Tibra is doing bad is know since a while. Who are the winners and the losers in our days? Anybody ready to share?
well tibra might be doing whatever, how are you doing my good friend?
one of the winners are maven for sure
According to head hunters:
Winners: Citadel, Virtu, IMC, Optiver, Credit Suisse Prop Trading, DRW
Losers: Getco, Tibra, Source Capital
Thats such a stupid statement
CS prop no longer exists! No risk taking there anymore!
that comment came as ‘quote from headhunters’; expect plenty of stupidity included for free, those people don’t know their heads from arse
‘CS prop no longer exists! No risk taking there anymore!’
they call it systematic market making now
how are the risk limits, payouts, capital allocation, headcount compared to before?
no clue, but they apparently made 200 mio YTD, not so bad for a market maker
how did source end up on the loser list?
source capital fired tons of their traders who were profitable with track records. terrible management.
it’s nothing to do with track record and everything to do with your last trade and what you can deliver now, if you can’t keep up, then you are out, nothing personal, it’s just business, have a nice day
how much pnl did source have on average last few years?
also, is that 200mil ytd pnl for cs prop?
unless majority of traders had similar strategies and were bleeding, then why clear out of most traders? i heard majority of traders booted out. if the traders weren’t performing, then fine. but why so many left? and why are other trading firms hiring these ex traders?
who is Source Capital and the management?
Source Capital has been founded by former top IMC traders Peter van Hasselt and Itay, they also manage the company which is in Zug. It seems they were able to hire quite good traders in the last years and have very good technology.
even if traders have different strats, doesn’t make some of them would work for sure, if none works, they are all out, nothing personal, just business
so many left because they are not required any more, what’s so complicated that you can’t get your option trading head around it?
which other trading firms are hiring the fired traders?
Pieter van Hasselt wasn’t with IMC. He had a joint venture with Rob Defares. Itay Gross was an IT guy at IMC who jumped ship. Other Source Capital names from back then were Eddy Slijpen and Chris Kamphuis whose brother Henk is an IT chief at IMC in Chicago.
Any other names?
Itay a top trader? He does not know the difference between bid and ask
Itay an IT guy? He does not know the difference between OR and AND
Itay is an arrogant, agressive, bullshitter specialized in screwing employees using the most dirty and unethical tricks
lol
Eddy Slijpen, what a man! He was behind many trading strategies in the good old days, when source capital used to run own strategies rather than looking to get strategies from outside and then firing the traders who brought them in. Does anybody know why Eddy left and what he is doing now? is he still in trading?
who is forcing your hand, if you don’t like Itay, there is an exit door on the far end of the corridor, have a wonderful life
can you elaborate on Eddy’s wonderful trading strategies, positive gamma + positive theta portfolio?
what’s a positive gamma + positive theta portfolio?
hahaha, trainee class 101
its trainee class 101 maybe for Einsteins like you,
for the rest
1) deep itm european puts
2) long upstrike vs short downstrikes – those downstrikes decay fast and upstrikes have enough gamma
3) long back vols vs short near vols – again, fronts decay fast and back end has enough gamma; the trick here is to find two options – buy the one with better gamma/theta ratio and sell the other option which is decaying fast without enough gamma
of course if you do 2) and 3) above in large size and there is adverse move in skew and front month, then you’ll be out of biz before you get your theta and scalp your gammas, so much for practicality of option trading
what products is source capital trading and what is the pl?
Tibra just canceled its membership on CHF Eqty…
http://www.six-swiss-exchange.com/swx_messages/online/swx_message_201310251414_en.pdf
so looks like they are hacking market making chf single stocks
EU equities not the place to be for the past one year.
volumes on options of the indices have also been dismal
then why do people in interviews ask ‘why you got fired’?