An Insider's View: Market Makers' Secret to Successful Trading
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- Опубліковано 29 тра 2024
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📝 Description
Shelly Natenburg has been working in options for over 3 decades. His insights on market structure and derivatives trading give a clear and concise view on how to make a trade and manage risk on million-dollar scales, or for retail traders.
00:00 3 Basic Questions Market Makers Ask
01:25 What Does a Marketplace Think a Contract is Worth?
02:20 What Do I Think a Contract is Worth?
07:00 Making a Profit on a Trade
07:21 Market Maker Example for Options Trader
11:00 Calculating Greeks on a Trade
13:55 Analyzing Risk like a Market Maker
15:25 Why Selling Options Helps Reduce Risk
18:05 What Else Can Go Wrong?
21:45 Understanding Standard Distribution
28:22 The Market Maker's Secret for Success
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Beneficial presentation. Would love to see more of these seminars recorded. Thank you, tasty!
read his book probably 100 times+ in the last 25yrs, still need it on a daily basis ...
very clear presentation! thank you
That was a fantastic video!
Relevant and based on real life market making. Thanks.
Beautiful and love the separation and realization of theoretical and realized moves within the distribution curve. I personally just got wiped out in the most recent run up in the nasdaq 2023 rally
This is an excellent video on understanding some of the market maker’s motivations. Especially if you’re trading the same stock on a daily basis. When you can combine time and sales of order flow of stocks and watch option time and sales, it adds more depth to what is occurring in a market. I’ve recently observed “contingent” orders in my Fidelity time and sales tab that do not show reflect on my charts volume and this has also provided another level of previously unknown data. It begins to formulate a picture of larger market participant activity.
Interesting. Going to look into that tab.
I like this guy. Bring on part-two.
Watching a few more times because one of many moments that I realize how much I don't really understand......in theory or in practice. To quote one of my young sons, "It's my forte but I'm just not very good at it" 😂
You will get there if you keep at it. Understanding who all the participants are, how the positions are set up, and then how those participants protect themselves is what is going on here. I’ve traded daily nearly four years straight now and studied earnestly and every day with actual hands-on experience and application have I persevered. There have been losses, but there are gains through education. You will get there with steadfastness. 😀
Oh good it was not just me then
Watch it as many times as you can. It’s gold. If you understand at least 50% of the content…
I’m compiling and picking stocks that I’d love to hold on to for a few years before retirement, do you think these stocks would do better over the years? I’d love to retire with at least $2million savings. Now you gotta rely on a pretty good diversification if you must stay green. Currently up 31% and being cautious. Still better deal than letting it sit in savings or checking earning near 5% interest
merely looked him up on Google and was highly impressed by his credentials; I got in touch with him because I need all the help I can get.
Thank you for this tip. It was easy to find your coach. Did my due diligence on him before scheduling a phone call with him. he seems proficient considering his resume.
An obvious way to lnvest for a recession is to buy shares in businesses that are likely to experience steady demand even in a downturn. Typically, those are consumer staples, utilities, and healthcare companies, but off course such decisions cannot be made by an average Joe, a financial advisr is important in making this decisions
I wholeheartedly concur, i have thought of engaging with an lnvestment coach,
😊😅
Great quality content as always
This is a PURE treasure indeed!!!
Great job in simplistically breaking down how markets work. This should be the very first video every new trader should watch. I never got this in my college finance or economic classes that were so behind the curve of the real world.
this is gem
Always great content by guys and gals that actually did it. Where else you getting that but tastylive
This was excellent. Very helpful.
Superb :)
I have his book. Interesting read. Jelly rolls.
Nice video
How do you sell digital assets
Dealers/Market makers may trade for their own account as principal traders.
Does this mean profiting off of the bid/ask spread, or does this mean buying and holding, then selling later?
Shelly natenberg? Is he the guy who wrote the famous options 101 the green book? I read the book like 10 times or more...
It is indeed.
Yup Options Probability and Pricing Strategies. Deep dive.
I got the book, he’s the one
18:40
Can one do what market makers do and make profits
Loved your video. It was very informative. First of all, when you rattled off _”the Greeks”_ I said to myself, _”What an awesome sounding fraternity/sorority!”_
I also remember an online instructor touting the _”edge”_ involved in selling *credit spreads,* likening the seller to _”the house”_ as in a casino. Then I got cynical and decided that it was *the market maker* who was *REALLY* _”the house”!_
Global stocks headed for their biggest weekly decline in more than three months. European shares fluctuated, with a record 36% drop in Siemens Energy AG’s shares after a profit warning dragging on the broader market. US index futures fell. According to chief economist at UBS Global Wealth Management “Financial markets have had one of those switches in the narrative that happen occasionally, and are starting to worry about higher interest rates driving recessions,” I'm still at a crossroads deciding if to liquidate my $300k stock portfolio, what’s the best way to take advantage of the market?
Are MMs typically long or short Gamma?
They do not care about gamma. Every fund is different. You shouldn't care. Delta, Theta, and maybe Vega are only ones worth your time. Hence why the Dr. only talked mainly about delta in the video.
he said a lot, but how does that help traders?
Very true, people downplay advisors role, until burnt by their mistakes. I remember just after my layoff early 2020 amidst covid outbreak, I needed to stay afloat, hence researched for license advisors. Thankfully, I came across someone of practical knowledge, and decades of experience, my stagnant reserve of $225K has yielded nearly $1m after subsequent investments so far
Stock delta hedge isn't gonna protect you against next day gap up downs
With markets tumbling, inflation soaring, the Fed imposing large interest-rate hike, while treasury yields are rising rapidly-which means more red ink for portfolios this quarter. How can I profit from the current volatile market, I'm still at a crossroads deciding if to liquidate my $125k bond/stocck portfolio
We should just get rid of market-makers there's no reason to have a middleman involved
Or a synagogue 🤣
Given the current economic difficulties that the country is experiencing in 2023, how can we enhance our earnings during this period of adjustment? I cannot let my $680k savings vanish after putting in so much effort to accumulate them.
Dude is Redundant- this is a tiktok day & age. 10 to 15 min vids max - 30 min way too much -Old peeps are so out of touch nowadays
It’s more of a lecture style vid. If you don’t like it don’t watch.
@@Rpere387 i didn't watch. I take it you are old ? 😄
Your proud commitment to modern ignorance and short-attention span is impressive! (Yes,I'm old, thanks, LOL.) @@QuicK-SiLver
This is a fantastic video. Great to have insight from a market maker.
Combine this knowledge with a decentralised environment like @foxifytrade and you have a match made in heaven... After all, doesn't matter if you're the best trader in the world, if the platform you use becomes insolvent due to centralised mismanagement, it's all for nothing.
When retail users can be market makers in a decentralised, permissionless environment, there's an opportunity of a lifetime right there...
Nice video
I’m compiling and picking stocks that I’d love to hold on to for a few years before retirement, do you think these stocks would do better over the years? I’d love to retire with at least $2million savings. Now you gotta rely on a pretty good diversification if you must stay green. Currently up 31% and being cautious. Still better deal than letting it sit in savings or checking earning near 5% interest
Nice video
Nice video