Recent Content by dmo

  1. Delta hedging options wiht Futures..some text

    CDcaveman, maybe the lack of response is because it's unclear what the question is. Hedging options on futures with the underlying futures is...
    Post by: dmo, Sep 1, 2012 in forum: Options

  2. Calculating gamma of gamma

    This is all really just "options common sense." I'll try to illustrate with a few examples. Let's imagine options on XYZ with 300 days...
    Post by: dmo, May 31, 2012 in forum: Options

  3. So, since index volatiliy is trading richly...

    Sure you can, but it's not free money. There are lots of ways to get short premium and delta neutral, and they all carry the same risks. You're...
    Post by: dmo, May 31, 2012 in forum: Options

  4. Long vega delta theta neutral

    The more time remaining, the higher the vega and the lower the theta. So if you buy back month options and sell front month options at a ratio...
    Post by: dmo, May 31, 2012 in forum: Options

  5. Calculating gamma of gamma

    To calculate speed of your position at any particular moment is not enough - more important is to have a sense of what will happen to your...
    Post by: dmo, May 30, 2012 in forum: Options

  6. Calculating gamma of gamma

    Here are some important points surrounding gamma of gamma, in prose: The more time remaining, the more "stable" the gamma is, and the less...
    Post by: dmo, May 28, 2012 in forum: Options

  7. Strike in CME pits?????

    I saw the same report, and also didn't know what they were referring to. Wasn't that the worst journalism ever? They say volume is severely...
    Post by: dmo, Apr 13, 2012 in forum: Options

  8. Who owns an option?

    Let's say you offer a call at 1.00, and Joe Blow buys it. Your contract now is not with Joe, it is with the Options Clearing Corporation. Joe's...
    Post by: dmo, Nov 18, 2011 in forum: Options

  9. dmo's option videos

    You have to use the RIGHT underlying to calculate an option's implied volatility - not the one everyone else is using. There are arbitrage...
    Post by: dmo, Oct 2, 2011 in forum: Options

  10. ES options vs Spy options...

    Here are some differences: For ES options, it's as easy to short the underlying as to buy it. When you short ES it will never be called away...
    Post by: dmo, Sep 15, 2011 in forum: Options

  11. Profit from steepening Skew

    Glad you found it valuable, and thanks for the kind words. I do teach some seminars at option prop houses for support personnel and trainees,...
    Post by: dmo, Sep 9, 2011 in forum: Options

  12. Profit from steepening Skew

    Buy lower strikes and sell higher strikes at a ratio that makes you gamma neutral, then even up your deltas by buying/selling the underlying. Now...
    Post by: dmo, Sep 9, 2011 in forum: Options

  13. What makes you say an option is overpriced/underpriced ?

    If you have TOS you can click back through daily option prices for the past several years, although some here have complained about the accuracy...
    Post by: dmo, Aug 26, 2011 in forum: Options

  14. What makes you say an option is overpriced/underpriced ?

    First, understand that for your purposes the price of an option is its implied volatility, not the number of dollars and cents you pay for it....
    Post by: dmo, Aug 25, 2011 in forum: Options

  15. Are There Flaws In Options Pricing?

    You guys are confusing yourselves with math. Go back to the basics. The BS assumes that the underlying moves in a random walk, and that the...
    Post by: dmo, Jul 31, 2011 in forum: Options