List of companies in the options market

[hesitationkills]

Hi all,
I am new to options trading so am just playing offline for now. From what I can see there are only a selection of companies trading on the options side of things?? Assuming I haven't misunderstood is there somewhere I can get a list of all companies that are actively traded.
Finally from what I see even very basic/simple options trading makes more sense to me than traditionally buying and selling shares directly which is what I am used to. Is there a reason it is not real popular method of investing to the every day aussie?

Thanks

 

[So_Cynical]

Hi all,
I am new to options trading so am just playing offline for now. From what I can see there are only a selection of companies trading on the options side of things?? Assuming I haven't misunderstood is there somewhere I can get a list of all companies that are actively traded.
Finally from what I see even very basic/simple options trading makes more sense to me than traditionally buying and selling shares directly which is what I am used to. Is there a reason it is not real popular method of investing to the every day aussie?

Thanks

I did see a list once on the ASX site (cant find it now) but ETO's are restricted to mostly the top 50 stocks ASX50

http://www.asx.com.au/asx/markets/optionPrices.do?by=underlyingCode&underlyingCode=NWS

Bring up the page for any top 50 stock at the ASX site and right down near the very bottom of the page you will see a link to.

'Exchange Traded Options
Options are available over the security NWS. View the option code list for more details.'

 

[Starcraftmazter]

. Is there a reason it is not real popular method of investing to the every day aussie?

Beats the hell out of me, you can literally get 100% one day ROI without any leverage.

 

[skyQuake]

Beats the hell out of me, you can literally get 100% one day ROI without any leverage.

And you can just as easily lose 80% every day for a week

 

[Starcraftmazter]

And you can just as easily lose 80% every day for a week

Only if you are really really dumb. And have some problem pulling out of a clearly bad position.

 

[cutz]

Assuming I haven't misunderstood is there somewhere I can get a list of all companies that are actively traded.

If you haven't got webiress get a copy of the fin review, there you will see all the series that have some liquidity.

 

[wayneL]

Beats the hell out of me, you can literally get 100% one day ROI without any leverage.

Eh?

Without leverage?

Options are a derivative and leverage is intrinsic to how they work, whether that leverage is used or not.

 

[wayneL]

Only if you are really really dumb. And have some problem pulling out of a clearly bad position.

If you are so smart, can you explain to me the advantages and disadvantages of options and futures for day trading and why you are using options instead of futures?

 

[skyQuake]

Only if you are really really dumb. And have some problem pulling out of a clearly bad position.

Overnight gap on some OtM oppies close to expiry. Then you gotta cross most of the spread. Easy as pie

 

[Starcraftmazter]

If you are so smart, can you explain to me the advantages and disadvantages of options and futures for day trading and why you are using options instead of futures?

Actually no, I'm not smart enough to answer that :

However I may not exactly be day trade either (depending on how you define it). My positions last from one to a few days.

I only started with options about 2-3 trading weeks ago and already I'm up 300% on my portfolio (no joking), so it can't be that bloody hard. Considering that no managed fund in stocks or property has gotten this sort of a return even cumulatively in the last decade...


I may move into futures in the future, just have to take it a bit slow and learn things properly. For now they look rather scary, overnight futures jump up and down wildly for seemingly no reason (or better to say I don't understand the reasons a lot of the time), whereas I feel much more confident predicting how the market is going to open the following day.

The same can be applied reasonably well to the ASX8 stocks, though I don't know about smaller companies.


Likewise when I said it's not leveraged, I meant that you can never be liable for more than what you put in (this is buying ETOs once again). So even though you may lose 80% if you very badly misread the market or something extreme and unexpected happens - at the very least you can't lose money you didn't have in the first place.

 

[wayneL]

Actually no, I'm not smart enough to answer that :

However I may not exactly be day trade either (depending on how you define it). My positions last from one to a few days.

I only started with options about 2-3 trading weeks ago and already I'm up 300% on my portfolio (no joking), so it can't be that bloody hard. Considering that no managed fund in stocks or property has gotten this sort of a return even cumulatively in the last decade...

Well IF that's true, I'd like to be a fly on the wall over the next few months... but BTW, there is a quantum difference between trading chump change and a few hunfred million dollars. You are trying to compare elephants to insects.

I may move into futures in the future, just have to take it a bit slow and learn things properly. For now they look rather scary, overnight futures jump up and down wildly for seemingly no reason (or better to say I don't understand the reasons a lot of the time), whereas I feel much more confident predicting how the market is going to open the following day.

Lord! Both futures and options are derivatives that derive their pricing from the underlying market... all are subject to gaps (don't be fooled by the staggered opening of the index)

Likewise when I said it's not leveraged, I meant that you can never be liable for more than what you put in (this is buying ETOs once again). So even though you may lose 80% if you very badly misread the market or something extreme and unexpected happens - at the very least you can't lose money you didn't have in the first place.

It is still leveraged, though because you are long premium, you are not margined. Correct terminology is important.

 

[Starcraftmazter]

Sure, but I doubt people who trade hundreds of millions of dollars would come asking for help here - or at the least people who are new to it would not be trading so much, so it hardly applies in OP's case.

Otherwise, thanks for the advice buddy. I know the index is staggered open, but that's the thing - I prefer to make predictions of what it will do at the time of open, without worrying about the noisy that happens overnight.

And sometimes it does do truly ridiculous things (in my view) overnight.

 

[wayneL]

Long options don't save you from that, 'cept that you can't go past zero

Sure, but I doubt people who trade hundreds of millions of dollars would come asking for help here - or at the least people who are new to it would not be trading so much, so it hardly applies in OP's case.

I was referring to your 300% claim, not OPs query.

 

[Starcraftmazter]

Well we'll see. Theoretically with ETOs, all you need to do is get more % difference correct than incorrect, and the more so the money you make. Isn't that right?

For an index like the asx200, this is surely very possible, you must admit. I still have not had a single losing position out of about 7 I think.

I was referring to your 300% claim, not OPs query.

Well I'm not bragging saying I can be the world's most successful fund manager. But while I don't have much capital, surely this is the best way to build it up before investing in other things which have far more volume and liquidity?

Do you disagree?

 

[wayneL]

Well we'll see. Theoretically with ETOs, all you need to do is get more % difference correct than incorrect, and the more so the money you make. Isn't that right?

Positive expectancy applies to any instrument. Although you claim to have had some early success, I wonder about your money management rules.

For an index like the asx200, this is surely very possible, you must admit. I still have not had a single losing position out of about 7 I think.

XJO is no better or worse than any underlyer. It has some advantages over single stocks, but also disadvantages. The losers will come, trust me on that one.

Well I'm not bragging saying I can be the world's most successful fund manager. But while I don't have much capital, surely this is the best way to build it up before investing in other things which have far more volume and liquidity?

Do you disagree?

Yes and no. You are taking large risks relative to your pile of pennies, but piles of pennies don't turn into mountains of 100's without cranking up risk.

It depends how important that pot is to you. If it doesn't bother you if you blow it up, fine, stay on the punt, but at some stage you will need to review your risk parameters.

I maintain long only options is the least efficient way of directional trading.

Options are best for non-linear trading.

 

[Starcraftmazter]

So please once again elaborate as to what you recommend I do, within the context of taking advantage of the same positions as I am taking now.

Additionally, how much money would you say is enough before reviewing the risk parameters? $1m? More?

 

[wayneL]

So please once again elaborate as to what you recommend I do, within the context of taking advantage of the same positions as I am taking now.

Well it sounds like you're swing trading XJO. You can keep doing what you're doing if you like, but delta for delta, futures are more efficient. Unless of course you are considering and trying to trade the non-linear aspects of options (AKA The Greeks).

But then you'd spreading and morphing rather than being long only all the time.

Additionally, how much money would you say is enough before reviewing the risk parameters? $1m? More?

Your call, but from my perspective, but for e.g. - if I only had 50k and it was important not to lose it, I wouldn't be gunslinging like you are.

 

[Starcraftmazter]

Unless of course you are considering and trying to trade the non-linear aspects of options (AKA The Greeks).

But then you'd spreading and morphing rather than being long only all the time.

What do you mean by this?

 

[mazzatelli]

What do you mean by this?

Do you know what happens to the value of your long call after a day, if the underlying hasn't moved at all and why this is so?

 

[Starcraftmazter]

Do you know what happens to the value of your long call after a day, if the underlying hasn't moved at all and why this is so?

This has never happened since the indexes always move even if only a little.

Are you referring to the time premium of options?