I was trying to compare the volatility to matter, when using the term "anti-volatility". Didn't mean to make is sound confusing. We are using...
No - They invented them (sort of). I hadn't been on since 2006... I know of a couple of ex-timber hill traders that post on here and a few...
I don't know why I bothered with doing all the math - with examples to offer some help - only to getting beat'n down. If these people new to...
Let's keep the responses to the math and toss the semantics to the side. I am just pointing out that market makers, institutions, and even many...
Fine - as the last 3 post claim that the word "premium" means the net price of an option - as defined by the series 7 exam. Ask any market...
interesting - thanks - I concur, leveraged bet with a finger along-side the nose.
I agree it is a phishy trade to say the least. What is the OI - who knows how much was an off-set against an existing position? Additonally, I...
I think there is some misunderstanding... Many people confuse the term PREMIUM. It is NOT the net price of the option, rather it SHOULD only be...
Valid points... However, I believe that volatility expansion/contraction can be predictive (the second derivative). You may disagree - which is...
That's what the cat said when he was put into the box! I guess you missed my point on the 3 derivatives of motion..... never-mind - You...
Great POINT!!! I do NOT recommend relying on ANY back-testing if you are going to MANUALLY TRADE. Back Testing ALWAYS assumes automation....
BTW: You can have two methods of winning. You could be right only 40% of the time , but have a 3:1 payout. Or You could be right...
A strategy (regardless of probability) should have a risk/reward ratio. Example: Covered Call - 1. You can calculate static yield 2....
It's daily and it's Free (the second best 4 letter "F" word). Market Preview...
Sorry - I do stand corrected as to the old vs. new. As well, I am aware of the including of the skew in the new model. However, the distribution...
While that is certainly good comedy, you should not be trading the rent in the first place.
The primary problem with back-testing is that you may see something that works, but it may only "seem" to work. Unless you are able to answer...
Execution risk, liquidity, etc. Example: (not taking liquidity into account) I once saw a back-test for options trading that did extremly...
QQQQ (minus the tracking error) is aprox. 1/40th the value of the NDX. Thus trading them against one another - you need to use the multiplier...
VIX - yikes... What to say that hasn't already been said. I have several issues with the VIX as a method of predictive statistical...
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