Option Workshop blog #uncategorized

Monday, 02 January 2017

Top dividend-paying precious-metal stocks – these dividends could triple!

Looking for protection against inflation or recession while getting paid to wait? Here are a few options to seriously consider.

The case for buying precious-metals and miners was recently made here, and now it is time to share our favorite trades.

Gold has been like a kite caught in an unrelenting storm for the past 10 years; flying to extremes ($1900) on wind streams of economic collapse, monetary expansion and Brexit then dovetailing lower on Wall Street’s sporadic hopes of normalization. For the better part of the last 4 years, Gold has been consolidating and trending lower but with Donald Trump about to usurp the throne, the glory days may soon return with a vengeance.

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Saturday, 24 December 2016

Weekend readings, 2016/12/24

How to Make 40% a Year Betting on the Market, Even if it Doesn’t Go Up

Here is the trade I made last week when SPY was trading about $225:

  • Buy to Open 1 SPY 19Jan18 220 put (SPY180119P220)
  • Sell to Open 1 SPY 19Jan18 225 put (SPY180119P225) for a credit of $1.95  (selling a vertical)

Vertical put (bullish call spread) strategy to gain 40% in 13 months

http://www.terrystips.com/blog/how-to-make-40-a-year-betting-on-the-market-even-if-it-doesnt-go-up/

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Tuesday, 20 December 2016

One Easy fix for traders getting stopped out too early or cutting profits too soon…

If you’ve traded actively for at least a few months or years, you’ll know all too often the agony that comes with getting stopped out of a position and immediately, the trade takes off. A similar but lesser form of agony is felt when a trade has hit your price target and you proudly sell your position. Except, it keeps going and going…

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Monday, 12 December 2016

Trump won and you missed the rally. Now what? Part 1

There is nothing so disastrous as a rational investment policy in an irrational world – John Keynes

Trump’s victory surprised even the most well-informed financial analysts and bloggers. A quick scan of the headlines leading up to the elections showed endless articles which pontificated what a Hillary presidency would mean for markets. And those few articles which did venture a guess at what a possible Trump aftermath would look like seem even more ridiculous now in hindsight:

  • Barclays – 6% fall in the S&P 500 before a partial recovery by year-end
  • Citi – 5% drop in S&P 500
  • RBC Capital Markets – 10% to 12% fall in the S&P 500
  • Wolfers,an economics professor at Dartmouth College – 12% off the S&P 500
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Monday, 12 December 2016

Trading like this can be fatal for you, Part 2

In the first part of this article, I briefly discussed a rather painful early trading experience during the financial crises in 2007/2008. I was short and still somehow killed my account.

I let my emotions dominate my trades earlier in my career. My self-worth was tied to each dollar made or lost. I was many things back then. Too eager, too risk-loving, too young.

Eventually, learned that my trading career is like a war that never ends. Every minute of trading is a battle with others trying to separate me from my money. If we fail to manage our emotions, we become easy targets. After blowing up my account multiple times, I learned some very painful lessons.

As promised, I will share with you my framework to keep psychologically sane while trading and also what to do when off balance.

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Monday, 12 December 2016

Trading like this can be fatal for you, Part 1

I was 24 years old and it was July 2007. I was sitting on the fixed income trading floor of BNP Paribas at the time and was just itching to take a big short on the stock market. Equities had been rallying in the face of a crashing fixed income market. It was like smiling into the fist of a much younger Mike Tyson.

I finally pulled the trigger after months of waiting and shorted as much high beta stocks my margin would allow. After all, that’s how the legendary Jesse Livermore used to do it right? I doubled my money in a matter of weeks and was on an emotional high. I truly believed I had found my calling in life.

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Monday, 18 July 2016

Working through CQG Continuum

CQG Continuum is currently one of the greatest projects in the industry. In short, CQG Continuum is a connection point to the whole CQG infrastructure. Technically, there is an IP address and a port where WebSocket listens for client connections. And there is a clear binary protocol, which uses protobuf.net (Google’s project) for message serialization. That’s it. No CQG software (like CQG IC or CQG Trader) need to be installed on the computer to interact with the CQG infrastructure.

Option Workshop has a connection adapter for working through CQG Continuum. In this case, the definition of “Working” means both – receiving market data and placing orders.

This post gives a snapshot of who is who, who pays whom, how everybody connects to one another and how to obtain a CQG Continuum login, and setup Option Workshop.

The scheme

CQG integration scheme

The process

  1. The FCM creates a login and password for the user in CQG system through the CAST interface and gives them to the customer. The FCM enables the “ItGlobal” (single word, no quotes) private label when creating the account
  2. The Customer in Option Workshop configures an integration with CQG, where they enter the given login and password.

Thus, only two steps are needed to start working in Option Workshop through CQG Continuum.

FAQ

Who do you clear through?

We don’t do any clearing. We are not an FCM, we are a software vendor and Option Workshop is a standalone application, which uses separate system infrastructures, i.e. – CQG. You trade through your FCM. The FCM may technically work through CQG’s infrastructure. Option Workshop (a Windows application installed on your computer) may connect to the CQG Infrastructure with your CQG login and password, given to you by your FCM.

How much do you charge per trade?

We don’t charge per trade. CQG and the FCM does. We sell monthly licences to our customers for our software at fixed price.

Troubleshooting

If your FCM doesn’t see our private label (ItGlobal) in CAST, then call us or open a ticket at help.optionworkshop.net, we will contact CQG and resolve this.

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