"Covid Exhaustion": People Are "Done Being Told What To Do": Former CBOE Floor Trader
This is part 2 of an exclusive Fringe Finance interview with former floor trader Ryan Sellers (@OpenOutcrier).
This is part 2 of an exclusive Fringe Finance interview with former floor trader Ryan Sellers (@OpenOutcrier), where we discuss options trading, trading vs. investing, his outlook on the markets, how the nation and the Fed will navigate 2022 and the state of overall liquidity.
Ryan began trading in 2002 on the floor of the Chicago Board of Options Exchange (CBOE) as a market maker in the DJX and SPX pits. In 2005, he joined the proprietary trading firm Trebuchet Financial, where he continued to trade options and equities.
In 2014, he began using the @OpenOutcrier Twitter handle to post real-time stock and options trading headlines, breaking news, rumors and strategy. In early 2017, http://openoutcrier.com/ was launched as an extension of the Twitter handle and integrated news platform.
The site consists of the OOC Feed, a custom BenzingaPro newswire, chat room, curated social media feed, and searchable archive.
Ryan was one of the first people on FinTwit I started talking to years ago - I’ve known him somewhere between 5 years and a decade. I have since met him numerous times in real life at various conferences and events; and I recognize that he brings sharp insights, especially in the world of options, and a valuable - and different - perspective to the market and investing.
I got a chance to catch up with him for the first time in a long time last week.
Part 1 of this interview was published here last Friday. Here’s Part 2
Q: We’ve seen tons of volatility the last 6 months and you’ve been an options expert for a while. How should retail options traders change their strategies once implied volatility blows out options premiums?
A: This is the concept that is the hardest to grasp for most new options traders. I often hear, "I'm long puts and my stock went down, how did I lose money?" This is the effect of volatility on the price of options. Especially out of the money options, who's entire value is based on volatility and time to expiration.