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I've got that...now all I need to do is get my BS in finance w/ a minor in compsci, and join a derivatives market-making firm at an entry position in their trading dept. Btw, why exactly would I be found interesting to a prop trading/market-making firm due to being a former...

I understand...I'm not looking for a failsafe system, just some general ideas. Perhaps I should watch the IV charts of a specific stock, and enter a short straddle when IV is at its peak, like right before announcement of earnings or drug trials, then close out after the announcement, when...

I suppose it involves solving the Black-Scholes eqn for the greeks, and making trades based on those.

So, what other strategies work well for profiting on implied volatility? What about buying a long straddle on a stock that's about to have a major announcement (outcome of a trial, approval of a drug, merger approval, etc.), and dynamically hedging (I'd always be buying the underlyer low, and...

Yes, I suppose :-) But they obviously have real work to do. I guess they assist the senior traders in market research, developing and implementing automated strategies, etc.

So, what would an entry-level trader for a "true" proprietary trading group, lke Wolverine Trading, do? Market making? Do market makers like selling options (and dynamically hedging them, of course) right before earnings announcements, to profit from the drop in IV? Does the hedging of...

What's the average day of a professional options trader (working for a prop firm, hedge fund, or bank)? I suppose for the first hour and half you do research, then you discuss strategy w/ your coworkers for the next hour and a half, then you trade until the markets close, then you review...

Well, the only reason I'd be working is to pay for my classes and support myself.

Good, or interesting, or both. Think I'd have a shot at landing a junior position at a good prop firm, like Wolverine or Chicago Trading Company?

I'm willing to get licensed and set-up...I'd rather have access to institutional equipment and research. And feel like part of a team. I really want to be a derivatives market maker

So that I won't have to deal without all the hassle of being self-employed, have access to larger amounts of capital, and far better equipment then an HP dv9000 laptop w/ ThinkOrSwim and FiOS. Anyway, please answer my question. Thanks.

I've got an interesting situation: Currently, I'm attending Orange Coast College, and earning my AS in Cardiovascular Technology, so I can work as an echocardiographer while earning my degree. I've always had a passion for both health sciences and finance...echocardiography always fascinated...

Ah...any other tips? What situation could cause such an IV discrepancy? Would it be simpler for me to simply be delta neutral, and dynamically hedge?

Would entering into a spread that's delta-gamma neutral, w/ a long vega be profitable, if you enter a few weeks before the release of the underlying's quarterly earnings, and then close out a day before the release? My theory is that, since IV is low a few weeks before a company's earnings...

So, let's say I've got a XYZ 50 call expiring 365 days from now, and XYZ is currently trading at $49.50. XYZ pays no dividends. The risk-free rate is 4.382%. The call is trading at $7.50. What would the volatility be, and what could affect it? Things like quarterly earnings, news announcements...

How is that more useful?

And what could cause a IV crash? And what about my second question? Any one else here to help us out?

How does a beginning options trader use implied volatility? And why do advanced options traders quote options in terms of their implied volatility? Thanks!!!

Oh, right. I keep forgetting OTMs are money-wasters. So, buy high delta calls w/ low vols, w/ at least --for my purposes, anyway-- six months to expiration. During high VIX periods. And thoroughly research the underlying, w/ both technical and fundamental analysis. And a good time to trade out...

I do not understand your question