O, but I do, and I don't mind being roughed up when I'm wrong. But it's all about respect. Someone having only 10 posts is not welcome when he starts out with insulting people. Insulting can be done anywhere, this place is at it's best when the right mix is reached. Ursa..
What would be cool here is if people just add facts. NOT opinions or emotions. For the record I knew of the BS model well before this post. Yet it did little for my specific question... I did get a bit from the other responses as well, but the name calling and elementary bull is not necessary, it makes for a waste of time reading among other things. It also makes everyone who takes part in such activities look like little school girls. I for one would not really listen to anyone who feels the need to say such bull s**t. You should be ashamed of yourself. Are we not too busy watching the market to stop and act like babies. OR is this forum where people go to let it all out. I am new here, and I thought I found a place where PROFESSIONAL and MATURE investors and traders meet. Bummer.
Some of the best option traders I have heard of or read about swear by spreading. It is the individuals who go long call or long put who have the hardest time making money.
Actually trading is done primarily based on opinions AND emotions...very few facts and to your second point I think the average age of the ET'er is 13 (emotional age)
I can find nothing about Whiley as a pricing model--do you have a reference? Black would be the appropriate European exercise model for "futures exchanges". Just as an aside, the adjustment for American exercise options is typically VERY small. Black or B-S are generally within a few percent. I am surprised there isn't widespread use of a levy jump process model.
Thanks for that. Batch makes sense. By the way, it is Whaley. Wonder if you'd considered leveraging Quantlib for your app? Supports Whaley and Merton 76 Jump Diffusion amongst many others.
I practice what I preach. As far as other people making money ONLY with spreads... good for them. I have tested my way of doing things well over 100 times and I find that when I spread, it kills the profit. If I were not to spread I would profit 100% or better more than 50% of the time. So, my comments work for ME - yay me! (can't wait to hear about that one... hehe) Ok, so as long as I know I am dealing with children here, I guess this could be fun fun fun!