StockFetcher Forums · Filter Exchange · Anyone trading the qqq<< >>Post Follow-up
woofys
212 posts
msg #32861
Ignore woofys
8/16/2004 5:41:07 PM

This is my first try at the qqq, is there anything I should be particularly aware of? Do you think the down trend is over? Would I be better off in calls or puts? If I bought calls, how far out should I buy them to be sure of not running out of time value before trend ends? Im thinking of buying Oct. calls, slightly out of the money. What do you think?


robdavis
69 posts
msg #32862
Ignore robdavis
8/16/2004 7:14:16 PM

Woofy,

> This is my first try at the qqq, is there anything I should be particularly aware of?

Trading the Qs can be advantageous.

One huge advantage of the Qs is diversification; the Qs are relatively immune from large price swings due to news events and analysts' recommendations.

The other huge advantage is the lack of uptick requirement when you attempt to short it.

Try the Qs, if you wish. You could minimize your risk by starting out with a small order of, let's say, 100 shares, but then will your experience be a good indicator as to what's down on the road, ahead of you? No, your trading experience won't be the same as mine and that of many others, because 100-lot orders are filled far more quickly and efficiently than regular, 2,000 to 5,000-share orders.

Keep in mind, if you attempt to trade the Qs, you can and will have big, unexpected, alarmingly large losses due to slippage (and commissions). Be aware the specialist on the ASE has the habit of filling and/or cancelling orders slowly... very slowly... and excruciatingly slowly. Especially when you want his help real badly. Especially when you want quick fills real badly. Especially when the market is turning around. For example, when the market is going up, the specialist will sit on your order until the price is rising, and then and only then he will fill your order. Or, for example, when the market is going down, he will sit on your order until the price is falling, and then and only then he will fill your order.

> Do you think the down trend is over?

Sorry, I do not have my crystal ball with me.

I hope this helps.

Rob



woofys
212 posts
msg #32894
Ignore woofys
8/19/2004 8:51:20 PM

robdavis
thank you.


bartimus
4 posts
msg #33388
Ignore bartimus
9/25/2004 11:34:36 PM

Your comments describe the reason why so many traders are moving to electronic exchanges and trade opportunities that use these exchanges for trade execution. With the new beginnings of the single stock futures contracts, floor traded options will eventually become a thing of the past. Those guys are "working" their way out of a job.


StockFetcher Forums · Filter Exchange · Anyone trading the qqq<< >>Post Follow-up

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