September 15, 2003

Bye, Bye SSFs

Well, after trying to make a go of it with SSFs (Single Stock Futures) for over a month, I'm giving up on them. It's tough enough to make money trading equities but with the additional limitations of SSFs, I felt that I was struggling with a no-win proposition. The three negatives of SSFs, in my opinion, are very low volume, large spreads between most bids and asks, and small selection of underlying stocks to choose from. Since my methodology in trading equities is looking for the opposite of these three, I could not find a satisfactory way to pick good SSF trading candidates.