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Australian Share Options

Discussion in 'Derivatives' started by white55lion, Oct 6, 2018.

  1. white55lion

    white55lion

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    Hey Guys,
    I haven't been around here for ages and I think this is my first post under this name.
    I just wanted to ask wtf has happened to the options market my god there used be lots of OI and some pretty good spreads.
    Just getting back into it (obviously) since about 2008 ish and gee it has changed bloody hard going these days like in WPL the other day there was a spread of about 15 points on a 40 odd cent option wtf that's supposed to be a prime stock and plenty more blue chips etc with similar spreads.
    I know you prob get done half way between but bloody hell what a change from years ago.
    I see they bought in weekly options absolute waste of space in my book.
    The whole thing almost seems to be drying up.
    What do ppl think, pretty **** in my book.
    Cheers
    K
     
  2. T0BY

    T0BY counterparty

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    I used to trade ASX Eto's back when the contract size was 1000. I remember the warrant market makers (Citi, RBS, Macquarie) offered better bid ask spreads, so I switched the warrants.
    I think most long term successful option traders are writing (selling premium).
     
  3. wayneL

    wayneL Rotaredom

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    Oz option MMs have always been sheisters and the primary reason I moved to the US market all those years ago.

    Nowadays the "make 4% per month 'share renting'" nonsense has pretty much dried up, so all the volume from the suckers is no longer there.

    We will have to wait for a new generation of suckers before OI picks up again.

    As I stated a few weeks ago, for my own reasons, I an looking to repatriate my capital back into the Oz market .

    Not sure whether whether I will utilize options or not at this stage, thin volumes give the MMs a massive upper hand and perhaps contest risk a hurdle too big to engineer a positive expectancy.

    Just my thinking at the moment.
     
    aus_trader likes this.
  4. STEHAR

    STEHAR

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    thinking of getting back in too, still low oi, still large spread or tightened up?
     
  5. tradefloor

    tradefloor

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    We've got record market maker participation. Volumes could be better, but heaps of stocks with mostly good coverage. We've been building tech for Aussie options specifically for over 5 years, and it's starting to show. ASX/TradeFloor options trading game is a good place for beginners (education + realistic simulation account) to get to understand options and then the Implied volatility platform allows you to trade combos and singles for 30% less than the banks.
     
  6. STEHAR

    STEHAR

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    Thanks
     
  7. xhs8930

    xhs8930

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    I've used the TradeFloor/ImpliedVolatility system - it's great & has many features other 'AU' platforms don't currently have, however the price tag per month to use the live software is rather expensive. I've implored your team for creating such a great platform - however I think you may wish to reconsider the pricing model around your software to attract new users to the AU Options market and increase the amount of money in the options game overall. I love the fact that you have young minds wanting to create what's lacking here in Australia.
     
    aus_trader likes this.
  8. STEHAR

    STEHAR

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    Tried to get on but must have inadvertantly logged on somewhere before. Told my email I already in use. Cannot go any further. Steve
     
  9. tradefloor

    tradefloor

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    thanks for that - try a password reset on that page or shoot me your email via PM and I will fix it up for you :)
     
  10. STEHAR

    STEHAR

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    Email stevenharpur@ gmail.com
     
  11. STEHAR

    STEHAR

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