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someones wrong

The synthetic straddle he used in that example is short straddle equivalence, you’re referring to long straddle.

My new friend I can see you’re anxious to find some fault in my posts keep trying. Its forward looking in terms of volatility yes but not necessarily in terms of the direction of the underlying. As I stated the VIX is a lagging indicator in term s of the direction of the underlying, we...

Sneaky? is it in some coded language? Did I not thank the poster who brought it to our attention? Had Jeff been aware of his work why didnt he reference it 10 pages ago, that would have saved a lot of back and forth.

How did you make out on the Windmill whole? Did you nail the clowns mouth on 18 and win a free round?

There was no time value left on the 1340 call today. The market is spread around parity in the option otherwise there would be no incentive for the market makers to trade with you.

Really what would be the point in deliberately front running a tiny odd lot in a very thin issue? What is the best expected out come for the front runner 10 bucks?

The better question is why are you trading odd lots in a stock so thin you cant access it electronically?

buying leap puts and sitting around is another

No need to add that disclaimer its generally assumed that all ET'ers make money all the time.

Agreed robbie, there are a couple of things missing like fixed expenses, variable expenses etc etc etc etc etc

Just a note: There is not "time value" today, when you cover the ITM option you are simply paying the spread which is the incentive the mm's have to make that market. Also, the theta of the straddle over the weekend should not be that significant. Perosnally a bigger issue is whether or...

There are a lot fewer of them making money these days. Look how beat up the specialists on the NYSE have gotten in the last 7 years. Dont forget there are all kinds of payment for order flow deals, rebate deals and soft money deals in market making.

There is no way to lock in the spread profit until the options market opens. You dont have to worry about being assigned overnight on the sort leg of the spread since there is no reason for the holder of the short leg to exercise those calls a day early. You can buy a spread without margin...

Well thats an excellent start buying the total bottom and selling the top. Lets see if it was luck or this thing really works

Jeff in response to the two examples you posted and your replies to my remarks: In case one: If the market going into you opening the position was 2.00 to 2.50 and you paid 2.50 and immediately placed a stop loss order at 1.90, that stop would not be executed until the offer reached 1.90 and...

Apple and King, Thanks for bringing that to my attention, I did not know of it nor, obviously did Jeff. I am talking about basic options pricing principles which are totally lacking in the context of this thread on Jeff's part. I will look into Demarks work, but I speculate he has a firm...

Investopedia.. http://www.investopedia.com/terms/p/price-earningsratio.asp

Well the thread has migrated to a bunch of topics. i was just picking up on the theme of the OEX since you said after we popped it said to buy calls last night. Can you elaborate on how you think the OEX options are priced unfairly and manipulated?

No one said anything about the Stone Age. The volume in the OEX options has been dropping for a decade and the reason is well known. The plethora of new products that compete with the OEX are geared more to the retail trader. Since the OEX is a single listed option and its an American style cash...