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308 CHAPTER 11 Option Dialogue<br />
CHAPTER<br />
11<br />
OPTION DIALOGUE<br />
If you are reading this Chapter first, before the rest of the book, then I<br />
advise that you read it straight through without skipping back to the<br />
references identified (intended for the trader to revise with). Do this to<br />
get oriented to <strong>options</strong> jargon witness the depth at which this book<br />
wishes to take you in your <strong>options</strong> career. If you have completed at<br />
least one read though The Hidden Reality, then you may proceed and<br />
follow references to readings within the book.<br />
Mentoring has been an interesting part of my trading career. I had a few<br />
mentors, starting in 1981 when I was an apprentice on the CBOE floor.<br />
They all had different styles of trading and different ways of explaining<br />
the nuances of the trade. Mostly, I learned by doing. I obtained financial<br />
backing from one of my mentors and went over to the CBOT in 1983.<br />
Within a year I established a trading group. Some of the traders had<br />
experience others did not. I gave classes at my clearing firm and got a<br />
seat on the CME to expand my operation in 1985. While interacting with<br />
experienced and inexperienced traders, I found that I had a knack for<br />
interpreting complicated ideas from my veteran traders and explaining<br />
them to my novices. In late 1989, I set out to create the curriculum for<br />
the International Trading Institute, Ltd. and traveled extensively working<br />
with and training traders. Since my first book was published, I have<br />
continued to work with traders in person, over the telephone, via email<br />
and interactive forums.<br />
Email was my favorite medium back in the 90s, because they are<br />
easy to save, edit and illustrate when necessary. Email is particularly<br />
good because my pupils can save them, study them and revise from<br />
them. The forum at RiskIllustrated.com is even better because more<br />
people can share in the discussion. The following dialogue, between a an<br />
ex-floor trader and myself, covers the first couple of months of trading<br />
after he migrated from the floor to the screen and had finished reading<br />
Options: Perception and Deception. I chose this trader’s emails because<br />
at that particular time period the market was not trending in an obvious<br />
manner. Both the Dow and the NASDAQ Composite were in tight<br />
trading ranges, 9000 and 2200 respectively.<br />
©1996-2006 Charles M. Cottle RiskDoctor@RiskDoctor.com
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