Klurby, prior to your next vix trade I suggest you watch this video explaining some vix basics, http://masteroptions.com/?p=82 It's been made...
The appropriate way to assess IV is to measure it individually and separately at each strike, in each month. Keep doing so and playable anomalies...
Yes, the delta is often used as a proxy for the likelihood of an option expiring in the money. But an option with a delta of 1 - virtual...
If you sell a 12-month hurricane insurance policy to someone in New Orleans, and 6 months go by with no hurricane, don't you think you've made...
I see that 100 shares of xyz are offered at 23.50. I put in an order to buy 500 at 23.50. I get hit on the first hundred. Last price is now...
That's an illusion, caused by the fact that whoever you're getting your IV's from is no doubt using the cash vix as the underlying in its...
Deep ITM options trade seldom, so the posted IV's are often inaccurate. Look at the same-strike OTM put - that will give you a more accurate IV....
You're confusing deltas with gammas. The value you get for your gammas is the same whether you make money or lose money. It's the delta that...
You seem to be leaning toward the use of options over underlying because by buying options you acquire gamma, which as you say means that as the...
Maybe I'm misunderstanding what you're trying to do, but if you buy high-delta (ITM) calls and you're "right" (underlying goes up), then the...
Years ago I took a look at Gecko's Track n Trade options add-in. It was unbelievably terrible. The implied volatilities and greeks of all the...
It's true that fixed strike vol is less volatile than VIX. But fixed-strike vol is a poor comparison. Let's take that 900 put as an example. As...
What "event" caused the market to crash in 1987, which would have driven the VIX (had it existed at the time) to an estimated 150? The election...
If anyone thinks that the negative correlation between option IV and the price of stocks is just an artifact of the way things are calculated,...
How then would you explain the almost-perfect negative correlation between SPX and VIX, as charted on the previous page?
That's a little different - in this case skew and IV is a reflection of insider info. Or at least, very educated guesses. In which case you...
Very sound approach. Use it as a contrarian rather than direct indicator - relatively higher OTM put prices are bullish, not bearish. This skew...
When I wrote "puts" in my previous post, I meant "out-of-the-money puts." By "calls" I meant "out of the money calls." As you say, puts and...
Ya gotcha theory, and then, ya gotcha fact. Congratulations on having noticed they're not the same. In fact, whenever the market goes up, the...
Over time, going into events that are much-anticipated and well-publicized, you'd probably do much better shorting straddles or strangles than...
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