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why do implieds of the same strike go up as you get closer to expiration..

you use this to trade currency at all???? take a look at the extremes going on in the yen ..

yeah ... coming up with ideas to exploit phenomenon is another task.. i remember i was sitting there writing over and over and over again about earnings trades.. and blasting my brain to figure out a sensible exploitation of the implieds... then after reading some it hit me.. sell the front...

Lecture 1: Stochastic Volatility and Local Volatility yeah.. lotta math there.. this book might be a little better.. as there is more descriptive detail..

thats a good point... mapping regular events and there contributions of volatility to market would be a good way to tell which days will likely have more vol..

thanks Comintel... and even more so for a guy like me who is 35 in his first calculus class as we speak.. haha i'm not scared though.. you just let it seep into you... I enjoy the process. i try to not get mixed up with the math.. extract the concepts.. after a while of looking at these...

livevol.. is 250 a month if you don't trade with them.. i reallly don't think there is edge in just looking at historicals/ implieds... sure theres some merit to knowing that.. but the implieds many times are valued quite well to realized/historic... historic is just looking at what...

i'l have to pick up Gatheral to.. i've now heard that name several times..

index here could be puts on the SPY... yes they could be naked.. which is no different then being long the index as far as risk is concerned.. you can spread to as well to deal with the margin requirements.. IE credit spreads.. some of the most confusing things for me were the new vocab for...

hey bro.. read this for starters .. http://www.ise.com/assets/files/FX%20Options/ExpiringMonthly_-_Trading_With_or_Against_the_Skew_0410.pdf

well... i'm new to options.. new to trading... and alot of times i think i have my head wrapped around an idea.. then i find so many slight nuances that make a world of difference... ratio backspreads i have never made any money on.. that being said.. when i first learned about them ...

inflation will send metals.. commodites up.. the Global economy could recovery on a positive feedback look.. even though its built on smoke and mirrors.. so you could have inflation and demand increase.. you seem to be very stuck on a bearish copper story...

+1

umm.. sometimes i think when the IV going into earnings is higher then typical its good to buy it.. but every situation is so different.. even with apple.. you could have put a fly on before earnings on the feb 15's and pullled it off after earnings with very little loss if you took it off at...

can you give me an example strategy..of what you were referring to.. i'm just curious.. ratios to me are a way to play skew.. if your selling a near the money put and your buying more otm puts.. or if your buying near the money and selling otm in ratio.. a buy overwrite.. i know a risk...

Nah... when he talks "net" your talking ratios.... its a muliti leg deal... this has come up before... trimodal strats

"A final word of caution. Fed announcements have a tendency to whipsaw the markets back and forth before choosing a direction." fade the initial direction with a wide stop.. i've always thought whipsaws were from binary type trades put on with stops lined up like dominoes behind the...

does anyone have a direction i can go in.. to research.. or even some heuristics.. (rules of thumb) related to the the skew, term structure etc.. in commodities options.. obviously there is a big difference.. as shocks send commodities up.. and generally i think of them as more jumpy and...

He is asking for a specific example... I think.... like what your talking about would be short near the money and more contracts long out of the Money.... your short gamma local long skew... am I right... ratio back spread -1/+2 and ratio writes +1/-2. Doesn't have to be this exact ratio...

just out of curiosity .. are you trying to fit a strategy that works well in a particular volatility environment.. sounds like it. or are you just not trying to trade when vol is low because of noise.. average True range... pair with Relative strenght or true strength.. RSI(ATR) or...