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Sorry, I was a little inebriated last nite when posting. Not only did I commit numerous grammatical errors, but, my thoughts were pretty incoherent. What I should have posted: Th VIX spiked to 36 on friday then finished below 30( rbane, you have a reading below 25?). Leading one to think...

Ditto Gatrader. Reread these books about five times each, so you can cram them into your head. It goes a lot easier on the fifth time. Gatrader: You traded Beans on CBOT? Do you I know Dean Berkiel or Aka Taz?

According to Yahoo(which I don't trust), the VIX spike to 36 on Friday. These indicators are short term. Indication of a long term bullish trend would be a VIX of 10. At least, IMHO. Get long below the long term trend. It was well down in the teens for a long time befor 1997.

In case anyone was wondering what the current BD rates are: Effective Date: 06/11/02 Broker Dealer Rate 2.5000 2.5000 0.0000 Cross-Margin Broker Dealer 2.5000 2.5000 0.0000 Short Stock Rate...

For sake of making it easier to read, I'll assume it is a 10X spread. Your greeks with NDX at 1101 are: Delta = -57 94.7 - 89 x 10 Gamm= 0 Both options have a Gamma of 1 Vega = -269 72.5 - 46.6 x 10 Theta = 179 37.7 - 19.8 x 10 For every 1 point move down you maek 57...

As previuosly stated on other posts, I don't trade these things. My capital limits me to stock and long options. I blew out as a MM twice. Of course, I could just make something up and make you feel happy. The position I offered for discussion is A VERY REAL TRADE. If you don't want to...

This is my third reply to your question. Each of the previous posts were erased due to my foot hitting the power cord. Hopefully, it is better than both. I would say overall that many of the people trading the tech stocks going straight up were making money. What happens is they jack up...

When the trade was inititiated, the stock was at 52. Sorry, I should have included that in the setup. If the stock didn't move one cent, the trade would be profitable as the break even point in the stock is 51.775. You could also compare it to a 50/55 bullish put spread. If you remove the 5...

Does anybody trade ratio spreads? Ratio call spreads or front spreads can give you a couple of advantages if you are bullish. You will get long deltas and you will get short vega to the upside. As many here know, implied volatility typically comes down when a stock moves higher. It is even...

I don't know how people survived that day as I was still in high school. The current haircut(this is different than what is commonly refered to on these boards. It is very similar to margin.) requirements are to have enough capital to cover a 20% move up or down and a 50% drop down. If a...

Yes. A significant part of the volatility explosion that happens on those very nasty down days is the result of the MMs jacking up the vols because of their desire to reduce their market exposure. I've ended a day like that buying more premium than selling. The stock itself did not justify an...

They could do a couple of things. The most likely would be to trade stock delta neutral. Also, they could trade with an order sitting in the book. They would look for a hedge which would lose the least amount of edge that they just gained(no brainer!!). The preferred choice would be trade...

I should expand on what I meant in my post about MM being Pussies. Fortunately, I was intoxicated when it was posted so my thought process was rapidly expanding into unkown realms. I agree with what Def has to say about banks caring. They don't want to lose anymore money than the next guy...

It doesn't surprise me that an electronic exchange draws more non cs orders. Your typical market makers are pussies when comes with trading with BDs. The typical ISE MM does not care because they are huge banks.

When I said they get fat, I meant, they lay on their moms couch and watch tv.

In direct reply to Chasinfla accussation that nobody ever says they blow up, well, I DID TWICE. I still am blown up. On Another thread somebody ask what happens to former floor traders, they get fat.

To elaborate on the previous post, you could start out as a broker and end managing a hedge fund. It is as easy as consistently making your customers money.

First, a couple of problems with the trading aspects of your example: 1. Spreads between the bid and ask can be large. In the example you cited, the difference was 12%. If you decided to cover after a small stock decline, your profit may not be as big as expected because of this. 2...

People with MBA's from Harvard don't go into trading. They go into areas such as private equity where a third of all people are graduates of this school. If you were to get a job with a hedge fund after business school graduation, it would be as an analyst of some sort. You would not be...

I had come to this board to find info on this exact subject. My first job was on the pcoast. I have noticed many familar names go off the membership rolls in the last six months. It seems many traders on this board rate them highly compared to the other floor based exchanges. After trading...