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I disagree. This site would not lose any cachet if it implemented a newbie area. A few quant message boards have it(ie nuclearphynance, wilmott, etc) and doesn't seem to detract from the post quality. jmho

Yes, they all work. Which have a quantifiable edge? Simple, buying the bid, selling the offer, period.

The perceived influx of new supply coming out of the Gulf of Mexico could have led to the selloff.

Thx RM, I entered and exited @identical prices and made $0.20 -comm. still a pretty darn good trade for a weekend hold. Still holding my sept/nov 15c cal I bot for $1.15, last marked $1.70. however, I will still have to earn more VIX premium before I bring you the finest meats and cheeses...

just curious nitro, did you pay $179 or did you pay something more and have to send in a factory rebate to get that price. I recently bought a dual monitor video card at Circuit City for $40, but I had to pay $80 and send in two different rebates, 1 to the manufacturer and 1 to c.c home...

The mole doesn't bother me as much as the nasty chest burn which is causing her skin to stretch, blech! I still wouldn't kick her out of bed tho. :p

*shrugs* selling cheap gamma via index otm strangles provides no edge whatsoever. Ignoring leptokurtosis, otm's are fairly valued. [edit]Haha, these are hypothetical fills and commission wasn't factored in either. This strategy is definately underwater at best. Another snakeoil salesman at...

The VIX options are priced based on the VIX futures contract VIX/U6-CV which closed at 129.50. multiply by .1 for approximation to spot vix. You can see it's currently trading at a premium to spot. As expiry approaches, VIX futures converges to spot. There are a few more moving parts in these...

http://www.cboe.com/Products/indexopts/vixoptions_spec.aspx http://www.cboe.com/micro/vix/VIXoptionsQRG.pdf

If you trade on the primary market, or retail, slippage will rarely work out in your favor, that's all I meant.

That 'way better fill' as you call it, is an illusion. Once you learn the mechanics of microstructure, you will see what I mean. :cool:

<----------see handle

you obvs. don't understand market microstructure very well.

A-ha! so it wasn't just me then. I thought I magically faxed myself to London or something when I start to re-read some threads. Good to know the space-time continuum is still okey-dokey! :D

That sounds great, b, best of luck. In your estimation, at what level, or size of your book does 'second order greeks' start to become a necessary evil, so to speak, in order to manage a book of business properly? I suppose one would start to hedge by calling dealers instead of going back...

The irony of the whole situation lies in the fact that the SEC unintentionally created the current market regime which allows and encourages the proliferation of many of these "upstairs" shops vis-a-vis payments for order flow. Which is discussed at length here...

A customer could mention something in passing to her former employer about how your wife is still in town opening up shop, yada, yada. Next thing you know you're in court pleading with the judge about how it's all okay because you have a po box 100 miles from here. Think he'll buy it? My...

Ok, so the market exhibits leptokurtosis, GREAT! How does that make me money? So, your second sentence suggests that the distro changes from lepto to gaussian to platy and back again? So, are you suggesting to construct a portfolio based on the changing distro? Am I in the ballpark?

Don't forget la creme de la creme = Mr. Double! :D

Haha nice try fellas. As a good family friend to the president and CEO of a regional life insurance company, I can tell you first hand this does not work. I know it was half in jest but I want to dispel this myth, and tell you that life insurance companies aren't that stupid. He told me this...