Interview: The Sell Side With James Cordier by Jayanthi Gopalakrishnan
The Road Less Traveled
James Cordier is the founder of OptionSellers.com, an investment firm specializing exclusively in selling options. He is also the author of The Complete Guide To Option Selling, which was recently published in its third edition. Cordier’s market comments are regularly published by international financial publications and worldwide news services including CNBC, The Wall Street Journal, Fox Business, Reuters World News, Bloomberg Television, and MarketWatch.
STOCKS & COMMODITIES Editor Jayanthi Gopalakrishnan spoke with James Cordier on December 3, 2014 about the nuts & bolts of being on the sell side of trading options.
James, please tell us a little about yourself and how you got interested in trading options.
I spent almost three decades trading commodities. Like most people, I was trading futures and buying or selling corn, pork bellies, or cocoa based on what I thought the market was going to do. Of course, when you’re trading futures, your timing needs to be impeccable.
Since the leverage in commodity futures is something like 20-to-1, you really need to have a rabbit’s foot in your pocket, because the day you buy, if you’re off by a few days, you’ll probably be stopped out, or you wish you had stopped yourself out. I’ve been trading commodities since 1984 and learned a lot about the fundamentals of different markets such as crude oil, gold, cocoa, and soybeans. But the entire time, in the back of my mind I was thinking, “There’s got to be an easier way to do this.” Not everyone can pick the time to get in and the time to get out. It’s so difficult because of the leverage.