Please read my original post again. I was not telling u or anyone how to trade. I was only giving a stock name with high IV each month as Darp was trading LNG. I was not asking for an education.
There hasn't been a crossed market in the OCC-domain since 2000-2001. I certainly don't consider LAC's "pick-em" trade as an arbitrage. -------------------------------------------------------------------------------- I think it was a little later than that say 03. I know the locked market model went to shit around 03. I left LAC before then and worked on some option trading models much like Making Markets but never taking the opposite side on the same day, had to hedge with the underlyer and that become capital intensive. I left the options game, end of 04 to join a boutique Private Equity Firm .....never looked back since.
Besides...didn't LAC get sued by IB? I remember something coming across the wires as one of my former colleges the Private Equity Firm was busting my balls as the basic SEC 'Financial Records' kept about where I worked had LAC on it and comes up on background checks. But, I do agree.....I wish I could find an edge just to play around in the options market.
option education snake oil seller ------------------------------------------------- Are they still around? "WITH MY AMAZING SYSTEM YOU TO CAN BE A TRILLIONAIR.
I don't understand the size argument. Risk is risk and it doesn't change with account size. It's no edge.
10 years @ 3% a month and you're up 3500% Start with 1,000 and go 20 years and you own a peice of Manhattan. Have a Black Swan blow out and your piece of Manhattan is a Pampers box residence down in the Bowery
"Volatility and risk go hand in hand." Respectfully, I used to think that volatility was a measure of risk. Now I think risk and volatility are correlated but are not quite the same thing. If that is what you were saying then we agree. To another comment: I would argue that size is indeed an advantage in the options market since the options market is so small relatively and quite illiquid at times and for some stocks. The liquidity aspect means that capital size can be an edge. I think Livermore would trade options were he alive today since I think that was his edge as well in the bucket shop days.
The OCC linked the exchanges in 2001 which barred any fill of any size on a crossed quote. IOW, no fill would occur if you hit a 3.25 bid on PSE with an offer showing 3.00 at PHLX. I know this because I got a letter from the OCC via IB which threatened to claw-back the crossed market gains. Anyone who was involved in the litigation would know that the trading in a specific ticker resulted in the inter-exchange linkage action. LAC's "pick-em" market (for those that don't know) was simply a 3.00 x 3.00 option in an inter-exch market.