Anyone Market-making derivatives here?

[zeeuk]

I'm interested to speak with anyone who is involved with exchange market-making - particularly options.

I would appreciate having a short conversation here or on PM about your thoughts on the market, the potential for profit and the costs of getting involved, etc.

I have several years of prop trading experience and am currently familiarising myself with MM.

Thanks.

 

[anley]

Profit potential is always open, how long is a piece of string?

Capital, for options, probably $500k minimum.

 

[zeeuk]

a lot of people moan about profit potential whereby you feel they are just 'getting-by'.

are you currently market-making?

 

[anley]

Never listen to anyone in the markets when they talk about money.

Many of the mugs who are losing will tell you they're winning.

Many of the big winners will tell you they're struggling.

Maybe only 5% of people tell the truth.

No, I'm not market making.

 

[zeeuk]

i don't usually, take it with a pinch of salt. but MM is somemthing completely new to me and im trying to get a wide representation (rather unsuccessfully at the moment!)

 

[anley]

Zee

If you're thinking about market making options then unless you get properly trained, and that means investing a lot in your education (both time and money) you don't have a chance.

Making a market in stocks is a whole different ballgame than making markets in options where you're up against the best in the business, THE best - no doubt about it.

 

[zeeuk]

i have made myself sound like a complete novice!
which is not the case- i know the competition!

 

[scose-no-doubt]

You need Gammajammer but he ain't really around any more. Apparently, he getted a shiney new job with more buttons to press.

 

[Martinghoul]

GJ was doing FX, so not quite the same. At any rate, what is there to say, really?

 

[anley]

i have made myself sound like a complete novice!
which is not the case- i know the competition!

Then you have all the answers and information you need.

 

[scose-no-doubt]

Thought he did FX options too:S