60k BPR with more capital risk, though. It's easy to plan for the upside...
These are the same trades in every way, except one has wings $2.00 out on both sides and the other doesn't. thazzit
The expected move can be calculated a lot of different ways, depending on confidence, HV or IV, and a lot of assumptions. I include variables that...
I use rules based on time not price action. Wings lose more than sans wings because when selling, the BRP is many times lower than the naked...
I use a version of the expected move formula, probably similar to the ToS MMM formula. At first I did not use wings, then I did, now I don't 80%...
Earnings strangles or straddles or condors with roughly equal deltas, on equities that move less than people expect
So, assuming I absolutely need to get filled within a 10 minute window before close and will take whatever they have in mind, I will be without...
You're saying that there is more information in a limit order than a market order, because a limit order creates an order driven market, so an...
Interesting. What do you mean by negatively selected? I have done meager post trade TCA, but what can I do as a child trying to stand on books to...
Option price depend on many variables. Non directional trading looks like this to me: Find several patterns in the gazillions of variables like IV...
Barbarian Days by William Finnegan, the second Jack London
Sure, if you are uninterested in direction but interested in collapsing or ramping IV, or some derivative of IV. These are the only types of...
A good MM is going to price an option conservatively and set a conservative spread, filled at bid/ask is their best case scenario, but not the...
Regardless of sub pennying since it isn't allowed anymore, how do we think market makers make money? I would say mostly charging a spread. They...
I agree that there is no informational advantage to be had by anyone who isn't an institution, and the playing field has mostly been leveled when...
I sometimes have a hard time believing that a retail trader can compete with the resources of a market maker, that there could ever be an...
I think the takeaway is in this paragraph on page 15/16: "The coefficients of the profitability, dividend-price and book-to-market ratios are...
You can also use TOS for backtesting, On Demand feature is very helpful, second by second IV/price data. Fills are optimistic but you can subtract...
@Atikon You wont get fucked buying back the spreads if they're narrow enough, only if the wings are low volume and very wide. Also, I think the...
@taowave nope, just td ameritrade. Tastyworks reduces spread margin even further actually
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