Archive

Posts Tagged ‘option valuation’

How do I get started trading equity options and futures?

September 4th, 2010

I have a quant background in hedging, so I’m not asking for guidance on how to learn modeling or developing strategies for trading options. I have work experience doing option valuation and developing dynamic replication strategies, but I have never done the trading.

I want to start relatively small – I’m comfortable putting about K at risk. I would be looking to hedge options against options while trying to limit the amount of dynamic hedging. I expect that I’ll need set up some margin in addition to any net option premium. Is K reasonable?

Are there brokers specializing in options? Does anyone recommend CME, CBOE or other tools? (I know that some exchanges offer tools for subscription.)

Thanks!


Related Blogs

Powered by Yahoo! Answers