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for $5k i'll teach you about options. :D pretty much everybody i know in the options world has read this book. http://www.amazon.com/Option-Volatility-Pricing-Strategies-Techniques/dp/155738486X/ref=sr_1_1?ie=UTF8&qid=1296014896&sr=8-1 i read it a long time ago. not sure what is in...

is the SPY is trading below 100 by april expiration, there are bigger troubles to worry about. just sell it.

what are you trading in SPY that you have a difficult time to get filled? the markets are tight. when you want in or out of a position is an extra penny really a deal breaker? i'll gladly give up $1k to make $10k, or whatever multiple you may trade in.

that's the price you pay for being long it over the weekend or the reward for being short it. i've seen plenty of big moves sunday night/ monday morning.

trading a short gamma position all comes down to how you manage your gamma. if you aren't hedging your gamma and are just looking for premium to come in, i'd hope you have some decent timing or use some strangles instead. the argument that you shouldn't sell straddles because vol could...

i'm all over hating on CNBC. i must tell the tv to STFU multiple times a day.

1x2 is common terminology. same with every other ratio 1x1.5, 2x3, 1x3, whatever.

slightly off topic... are you hedged or just long calls? if just long calls, why does it matter? i would think your change in delta due to vol is more important. you might be able to back out your delta decay from that.

i'm not sure the math you are doing actually mean anything. i'm not sure how comparing the 15-16 put spread to the 11-12 put spread are telling you anything. the 15-16 put spread is slightly out of the money, but has a reasonable chance to expiring in the money. especially considering the...

generally stock price. i think a stock under $20 will have 2.50 increments.

the spx isn't fully electronic. the screen markets can be vary wide. i would expect that option's real market to be .50 wide. SPY options are electronic and very tight. the SPX will soon be much tighter. sending orders into the SPX electronically can get very frustrating, even when trying...

are you referring to put/call parity? where are you getting your values? closing marks? closing marks really wouldn't be that helpful.

generally strike prices are every 5 dollars. under 10 or 20, they allow 2.5 dollar increments. this is for stocks. there have been various pilot programs over the years that have increased the number of strikes. i'm not sure if all stock options trade in pennies yet, but that was also rolled...

there is no volatility in the options at expiration. they expire worthless or into stock or cash (so parity).

i like buying the iron condors to sell real options. if you sell them, don't forget to take off a leg if the market give it to you. nothing like chasing one side for a loss and then the other side as well.

did guy cohen make a living on selling leaps? because that's the only sense i make of that. if i want to make a directional play, i want an option that is going to be most sensitive. i want an option that has gamma. short term options have time decay, but longer term options expose you to...

late response... iron condor was/ is in feb? looking at the rut vix, rvx, doesn't tell you what vol did in feb when you are approaching dec expiration. also, when you say it went down 2%, are you saying the rvx for example moved from 20 to 19.6? that's a 2% move but only .4 move in...

you should be making trades based on risk/reward. if you think you have a sure thing by selling, there is nothing wrong with that trade whether the IV is high or low. i'd rather sell vol, even with a low premium, at the top of it's range than sell a high premium option and the bottom of it's...

what are you looking to do? i don't understand your question? are you talking about selling deep calls vs. long stock you own because you can't sell the put?

buying a calendar would increase your short gamma. if an event happens, there is a rush to buy gamma over vega. since you are looking at selling these for the day and not for a longer trade, i'm assuming you aren't delta hedging. keep in mind that the market can stay still and vols can...