If the spread is still Theta positive it's worth hanging in there 9 times out of 10. But if you're Theta neutral or negative then leg down (and /...
LM3886 HV is backward looking and serves no purpose. IV is the markets expectation of VOL going forward. So I personally use the IV for the...
Worth every penny mate, should have done it years ago ! Speak soon.
LOL. Been really busy with the day job, oh....and a divorce ! Hope to get on these boards more often, I miss the pearls of wisdom :)
Have to disagree. Nothing wrong with adjusting (though I wouldn't call it a "repair") if a position goes against you. Sell naked Puts and the...
Volatility Skew. Do a google.
Fascinating ! So if (and I repeat IF) the future volatility of the underlying could be known in advance you still couldn't determine the "fair...
Yes. Took a severe battering Sep/Oct, but I survived.
The concept of VaR is a probability of an occurence, which in turn is a function of the volatility of the underlying stock, or if you prefer (I...
MTE is correct. The basic idea is to exploit a discrepancy between the implied volatility of an index option and the implied volatility of that...
Some useful discussion here; http://www.elitetrader.com/vb/showthread.php?s=&threadid=34499&highlight=egar
The further you go OTM the greater the leverage. A ball-park formula is Leverage= Option Delta x (Spot / Option Price). That gives you the change...
Appreciate your advice.
I disagree. There are different ways, but not better ways.
Not always !
Separate names with a comma.