Do Option Sellers Have a Trading Edge?

Discussion in 'Options' started by xelite777, May 9, 2014.



  1. Explicitly? Probably not.
     
    #51     May 10, 2014



  2. Any app can calculate the 25D risk-reversal. There is no arbitrage available to trade the skew flat -- down and out skew is a condition exhibited in ALL equity index markets. You really need to step away from the keyboard.

    The 25DD RR is around 400 right now. Sell the put, buy the call and short spot. Great, but what of the risk between strikes? There would be no skew if a same-strike arbitrage were to exist. It is that simple.

    Why do you run your mouth on subjects in which you are so out of your depth?
     
    #52     May 10, 2014
  3. newwurldmn

    newwurldmn

    I guess sle failed your test? So did jgills?

    The government did a great job bailing out refco and mf global and Enron.
     
    #53     May 10, 2014
  4. Typical Drownpruf's response.

    This guy does not have a single clue on how I usually use the option skew and yet he is here lecturing us in every single thread.

    Drownpruf, take five (or your pills), you are becoming EXTREMELY annoying.
     
    #54     May 10, 2014
  5. I don't remember testing sle or jgills or yourself. I only test when I am curious and the right opportunity comes along. The thread discussion requires a clear theoretical bifurcation (chaos theory).

    Sle knows his sh*t IMO. I have read and thought about what he said enough to hold an opinion. In a previous post I commented on my position with him and we have both kept the agreement. Others mucked that one up by putting words in my mouth as you well know.

    I haven't read enough of jgills or you to have an opinion.
     
    #55     May 10, 2014
  6. There is nothing here to comment on...
     
    #56     May 10, 2014
  7. And yet you are commenting. :p

    You are trading options Martin?
     
    #57     May 10, 2014
  8. jerry2dt

    jerry2dt

    May I assume that this forum hasn't any moderators? Why don't you two just trade emails and spare the folks who are here to learn?

    Just saying cuz I'm pretty new here.

    Jerry :confused:
     
    #58     May 10, 2014
  9. It does, but thanks to Baron we have a fairly liberal tradition (not the American meaning) where falsehoods and ignorance are exposed through vigorous debate.

    Strident verbal diarrhoea is usually a reliable marker of abject stupidity.
     
    #59     May 10, 2014
  10. Tell you what, why don't we just all communicate via emails and forget about the forum?
     
    #60     May 10, 2014