its simple. rmbs does not have a real business. its business is suing other memory makers for royalties based on a patent that was obtained under questionable circumstances. the market was betting on rmbs winning this last case and recieving billions in royalties. it was a total crapshoot. they lost the case. now what? who knows.
+1. rmbs is has extreme biotech like vol. anyone selling puts ahead of the court ruling deserves to lose EVERY penny. at least very least spread it so you're risk is capped.
The RMBS court decision was no different that a small-cap biotech into an FDA decision. You simply have no business selling vol in that ticker. You would've needed a 400-line on vol to survive, or to sell upside calls. Best scenario would've been to structure an upside short straddle, but it's moot.
I promise to bring a copy when I stop by your hovel to shove your head up your ass (in case it somehow gets dislodged). Merry XMAS
This whole thread is the reason why most don't make money trading options. 35 pages of nothingness....pure conjecture and speculation Imagine atticus, sle, martinghowl, and stardust sitting together at a table at Starbucks after coming down from their ivory towers and sipping on caffe lattes into the wee hours........all the while not making any money!! This guy below talked the talk and walked the walk: http://www.elitetrader.com/vb/showthread.php?s=&threadid=141574&perpage=6&pagenumber=1 he was printing money and then he just up and left...wtf happened to him...let's discuss his methods..
did you read the entire thread?...at first i thought he was a joke too until i read the entire thread...then it occurred to me that he was literally printing money...i suspect that he realized what he had and decided to fall off the planet before we could reverse engineer 'em......anyone else care to chime in on how he was doing it...