US options market

[Midget]

Would greatly appreciate some advise on entering US Option Market. Have been trading the Aust Market (several strategies) for quite some time now and also trading in covered calls on the US but am interested in trading options on the US Market. Opinions from experienced US option traders would be appreciated ie: stock choices, charting platform, trade duration, etc..

 

[MRC & Co]

Dont stock choices and trade duration come under the same banner......

You cant really look at one without the other?

Also, if you are trading covered calls on the US market, then you are trading options on the US market already?

 

[mullokintyre]

Tonight is a big night in the option world, (well the US options, but lets not be picky).
From Zero Hedge

In the quarterly event known as "quad witching" (technically, it's been "triple" since the close of OneChicago in September 2020, when single stock futures ceased trading, but for veteran traders it will always be quad), over $3.5 trillion of Index Options, Index Futures and Single Stock Options expire, either at the open of trade or at the close.
Adding to the frenzy, at the same time more near-the-money options are maturing than at any time since 2019 meaning that highly caffeinated traders will actively be trading around those positions as they seek to capitalize on any drift away "pins" (we will have a full list of the stocks most likely to see significant volatility tomorrow morning).
Furthermore, according to Goldman's Rocky Fishman, investors will also be watching the ETN market given the substantial size of expiring VXX. As a reminder, the VXX - the single largest volatility-tracking ETN - has been trading at a 12% premium to its NAV since its issuer suspended creations...... and should the VXX rally strongly from its current level, its in-the-money call options would be large relative to shares outstanding.

If that wasn't enough to give you cause for worry,

Tomorrow's quad witching also coincides with a rebalancing of benchmark indexes including the S&P 500, a two-for-one special that leads to soaring trading volumes that rank among the highest of the year. According to an estimate from Howard Silverblatt, senior index analyst at S&P Dow Jones Indices, the rebalance in the index alone could spur $33 billion of stock trades.

So is the party about to end? As many contracts expire, Bloomberg notes that the key question is whether investors will rebuild their record holdings of index puts amid growth concerns and the war in Ukraine -- or will they come out of their shells, and chase the market rebound with call contracts, creating a negative gamma meltup at a time when most dealers are still short gamma.

It would only take a single case of "fat finger syndrome" for the whole pack of cars to come crashing down.
Should be an interesting night.
Mick