Hi All, as somebody who does not trade options I have a few questions for the seasoned traders... I sit in an office where on the other side we have a bunch of option market makers (mostly former pit traders) who have been making a killing for the past few years, and this without too much apparent stress/risk. I also know of several other similar sized or bigger shops here in London that seem to produce such results. Now my questions... any ideas how they make their money so "easily"... do these guys get a lot of cream from their clients or are their valuation models that much better than those of other market participants? The broker/market maker relation seems quite important which somehow makes me wonder... All this applies to exchange traded options in Europe... are there any significant differences to the way the US work? Many thanks in advance.