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Mathematically, the way puts and calls are priced is different, this point is also illustrated in the put-call parity which should show that they're not the same! Now what theta is, is essentially the price sensitivity of the option to time; mathematically it's the partial derivative of the...

If you look at the stock market on a day-to-day basis, it may actually kind of look like a zero-sum game but it's actually not. Think of it this way, if company xyz is valued at $10 million at IPO and let us say a few decades pass and the company now has a market cap of $100 million. That's...

It depends on a whole gamut of factors and as you should recall theta is different for calls and puts. If you really want to see the effects of theta on the price of an option, why don't you write a simulation?

Let us for a second imagine a world where people only traded single equity options positions. If this were the case, one person wins and one person loses - zero sum game. The payoff function for a vanilla call is max(S-k,0) where S is the terminal value of the underlyer. Now I can see where...

Of course it is, both are components in the computation of VaR and ETL.

Curve fitting has been notoriously inaccurate, a stochastic model would be much better. However, basic stochastic models are only so good until you get into the tails.

Your question is a bit ambiguous, when you ask per trade are you talking per position (i.e. per stock) or are talking about per strategy? If we're talking per strategy, assuming you have some sort of edge, I personally really like the kelly criterion for trade sizing. It beats any trade...

Geometry and behavioral finance never seemed to bode well for me.

Well most simply put, a "mean-reverting" series has a negative autocorrelation!

I apologize for bumping an old thread, i.e. if it's a faux pas around here, but anyhow to answer your question simply put yes can you trade "volatility". Strictly speaking, if you're looking to trade realized volatility you would probably want to look into trading a variance swap. However...