The Diaspora of Floor Traders
by Bill Ulivieri
Cenacle Capital Management, LLC
Once again I was reminded of the old days when 400+ traders jammed the OEX pit at the CBOE. Each trader competed for order flow and the opportunity to execute their favorite strategy. Some traders were “shooters” or speculators; others approached option trading the way their father approached his vocation to plumbing, carpentry or the legal profession.
Many traded by the seat of their pants; others embraced “delta neutral” trading and used theoretical option pricing models as their favorite tool of choice. The Black-Scholes option pricing is a tool not unlike a carpenter’s square. Once you’ve “squared” your option valuations off the “at-the-money” straddle, the rest is pretty easy.
My trading acronym at the CBOE was “YEA”. Boxes, butterfly’s and back-spreading were my favorite strategies. My mentor had one rule. “It’s more important to be first on a trade, than it is to be right”.
Today, March 19th is the Feast of St. Joseph; Husband of Mary and the Patron Saint of Workers. It is in the spirit of St. Joseph, and the vocation to Work, I would like to invite former traders from Chicago, especially CBOE option practitioners the opportunity to apply their craft once again. Return from the Diaspora of Traders, this time as a Registered Investment Advisor. Whether you’re looking to get back in the business after taking an early retirement, or perhaps you left the floor and are working (unhappily) in another financial services capacity.
Cenacle Capital Management is a niche, fee based RIA. We apply an “option overlay” on equity, fixed income and commodity based ETFs. Fee based RIA’s need to raise assets under management (AUM) in order to thrive. Visit http://www.cenaclecapital.com/CareerOpportunity.aspx for more information.
If you understand how equity options work and can raise AUM, please feel free to contact me at firstname.lastname@example.org or call 847-686-4800 and leave a message. Remember:
“It’s more important to be first on a trade, than it is to be right”.