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Nitro, nice idea. I do wonder, however, if the product is so perfectly correlated to vola, and this has historically returned to a mean level, what would keep the product from getting distorted or over sold by the biggest money on the street. This could force a reverse hedge to the...

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Vols are independently unpredictable. You can plan your derivative position to respond to a change in vol however you like, but the amount of implied vol stuffed in to BS or whatever pricing equation used is a variable without supply:demand, or any other market force. It's simply a stat...

You just need to isolate which greeks are hurting your position and attack those first. If the market is on a break out, believe it, and then lean deltas in that direction. If you are more contrarian, when you adjust, bring yourself to delta neutral instead of 'bringing the deltas back...

After looking at the situation, it appears that you would need multiple scalps per day in order to capture that much movement on a day over day basis.

Have you guys ever set up a short straddle and then added a second for delta hedging. If it goes past the second, take off the first and add a third. Use the underlying for delta hedge if necessary.

Excellent reply Dr Sean. If you're running a complex book of options it may be easier to make those micro adjustments and not hedge yourself to death.

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Looking to move up from the ThinkorSwim software to something better to quote greeks, possibly Microhedge. Any input would be appreciated. Thanks!

Bounce... I would like to know if anyone is on Thinkpipes. Thanks.

True in terms of payoff, but in terms of probability, they should be the same, assuming some days before expiration, no?

OK, Again thank you.

do you need a cross-margin account? are you trading futs vs cash settled index options? i assume no as a customer. will you need access to capital or are you ok with what you have? if you don't need capital you can probably just go to goldman and use redi plus along with something like...

I keep a short order on the mini's about 4-5% below the SPX index value in case someone nukes themselves (they nuke us, we vaporize them in return) in the overnight and equities get a scare. I don't over do it, just enough contracts to reset my normally neutral deltas at that 4-5% point. I...

I don't know why anyone would trade the binary's when you can just trade a vertical spread and trade where there is tons of volume.

I think what I'm seeking is information regarding people's experiences using joint brokerage accounts. Moving to this setup was suggested to me by a friend who was a MM. I'm mostly trading vol through a delta hedged position book. The position is a typical multi month inventory, negative...

Looking to find out if anybody has has experience using a Joint Brokerage account through either Goldman, Merrill, or some other big house in order to trade index options. I'm thinking of moving my trading away from my retail broker and over to a set up with one of these guys coupled with...

Interesting. Could you guys discuss your trade parameters in more detail: - What are the criteria to enter a trade? - What are your criteria to exit the trade? For instance, if you've returned 10% of the total margin requirement. (I'm assuming that you would never put this trade on if...

I've been talking to quite a few of you regarding scalping gamma. It would seem to me that if you were a market maker you would simply sell straddles and scalp gamma as it slowly decays. This is not possible for most retail accounts because of the margin requirements. Does anyone in here...

I appreciate your humility, I've traded sense undergrad and I have learned to only to take those with humility as seasoned by the markets seriously, or at least with something at risk. It would appear to me at this moment that it may be more advantageous to trade options against options, as...