How to Trade Outside the Pits

Ever since it reopened back over the summer, the CBOE has implemented strict health protocols to protect traders from Covid-19.

You might think the CBOE would have a completely different feel with social distancing rules in place. But truth be told, the exchanges have been evolving for a long time. The advent of electronic trading changed everything…

the trading floor

The “good old days” in the pits…

The exchanges have now become backdrops for financial television and the networks have managed to transition to “experts” at home through evolving internet technology. As glamourous as it may have seemed on TV and in the movies, the trading pits live up to their name — they were PITS full of sweaty, cramped bodies bumping into each other to defend their turf. Not a lot of fun, that’s for sure…

The CBOE has essentially two active trading pits left right now, the proprietary SPX and the VIX pits. Reopening the physical space may benefit the hedge funds that have large, complicated spread orders — but it adds little value for anyone else.

The good news is that technology has opened the former “Boys Club” of opportunity to the masses. Tools and technology leveled the playing field. That’s why right now is the best time in history to become a trader! Anyone can trade any market, any direction, anytime!

All you need is a computer and an internet connection and you’re well on your way to beating the old-school pros at their own game.

Keep it In the Money,

Alan Knuckman

Alan Knuckman
Editor, In-The-Money

Trading Tip of the Day: Don’t let the election derail your trading

Greg Guenthner

Trying to make sense of a crazy market? Or are you planning to invest based on who you think will win this week’s election?

That’s probably not a great idea. Any gut feelings you have about this election could disappear as early as tomorrow night. No one knows what’s going to happen!

As market veteran Ned Davis, founder of Ned Davis Research Group, says, rely on objective indicators. Ned’s seen it all – booms and busts, bulls and bears. And he’s proven he knows what it takes to make money in the market.

You have a “gut feeling” about a stock? Then go take an antacid or something. Remember, the market makes fools of most people most of the time. And guess what—you’re “most people.”
Never think you can outsmart the market.

Instead, rely on your charts and indicators to tell you when to buy and sell. It’s the best defense you have against your emotions—which are your biggest trading enemy.

— Greg Guenthner

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Alan Knuckman

Alan hails from the home of options trading in Chicago, where he began working as a clerk on the floor of the Chicago Board of Trade (CBOT). Beginning with his days on the floor, Alan’s worked with all aspects of the options markets for the past 25+ years.

Transitioning from a clerk to a floor...

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