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you see don't look at a butterfly profit graph soley at expiration.. if the market doesn't move greatly in a few days you will quickly see profit with a butterfly and you can close with a profit! its a limited risk strategy as well.. better risk reward to credit spreads sometimes.. and stick to...

i think i just need to practice neutralizing gamma

have you read any other books that stuck out in your head.. I read the misbehavior of markets by mandelbrot.. and a plethora of other books all the way from a random walk down wall street. To fooled by randomness.. but I really wanna read stuff more about the mechanics of trading options...

Nothing like advertising everywhere you turn....

Sorry my spelling is off im on a tablet...

i jumped into things when i first started trading options and i never did it again.. A good five thousand dollar loss in one trade makes for an amazing lesson... ive been buying leaps and ratios in leaps on a very small scale on stocks im either directional on or im just long vol with a wrangle...

To rephrase... my thoughts for buying an at the money call was to cut the cost of the trade.... so basically I would have a ratio 1x2 and hedge with the stock . So I would sell two calls against one itm call and as well the necessary deltas in stock. I guess another more broad question is...

i haven't had much success with calenders.. maybe i'm not spacing the months out correctly and not selling enough volatility compared to what i'm buying .. that strategy is so threading the needle

Again my thoughts... find some leaps .. put a long vol trade in either a strangle, straddle, or a wrangle..

and this site has the the most straight forward explanation of most strategies http://www.theoptionsguide.com/

oh another good book.. a must read a quick simple to the point overview of options market making... http://www.amazon.com/Option-Market-Making-Financial-Commodity/dp/0471578320/ref=la_B001IO9JRC_1_1?ie=UTF8&qid=1341035065&sr=1-1

from the simpliest of books from Mcmillian http://www.amazon.com/McMillan-Options-Second-Wiley-Trading/dp/0471678759 to more more complex books...

all you guys are talking about is this argument about a huge difference in the opinions of many investors... the truth always comes out in the wash.. and to me it seems that last time i check no one can see into the future.. granted intuition helps but risk management keeps you in business...

yeah thats what i guess what i was kinda getting at.. to me the bottom line is.. is identifying which options to sell that are way over priced and buying which ones are cheaper then what could potentially be the realized vol minus the overpriced option you sold.. bought option...

ive tried earnings options trades several different ways.. bottom line is your speculating on a implied volality implosion or your hoping that something really unexpected is going to happen.. in Goog you can see the options already pricing in a 80 dollar move at earnings.. and rememeber Goog...

thanks for the imput... you don't know what its like immersing yourself in all this stuff in the middle of Florida.. where everyone for one doesn't care about derivatives.. and for two.. if they know anything its "oh isn't that those things those high fluting people use to bankrupt the country"...

what your saying atticus is EXACTLY what i have always thought... i literally have a book full of ratio back spreads... short one call long two.. looking to capitalize on rare events... BUT on a smaller scale i was playing with the idea of a ratio spread in the other direction .. with one...

so what your saying is i should trade in the complete other direction.. long vol by buying a put and trading in the underlying? not exactly that way.. but generally that way.. i my question .. how would a company like bac jump up to say a 15 dollar strike over night... i have a feeling...

ok.. i have 20k account.. haha you guys are now talking way out of my league! just to ask you guys since you seem all to be in some form or another arbing/ market making/ vol trading.. whatever you wanna call it.. would it be bad of me to be short vol in calls against stock on way out of the...

i totally agree.... holding up failing countries and reducing volatility (buying the bottom out of crashes and depressions) only leads to super cycles in which the entire financial system collapses! localize volatility.. not freaking absorb and normalize it!