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A fair amount of time it seems like there is a reversal somewhere within the first 5-45 min after the open. There are days though when the market opens and it just moves in a singular direction without much hesitation and some days it just never turns around. It makes sense that on these days...

Quick question for those more knowledgeable on the subject, but when I see market depths consistently with significantly higher size then what is being printed on the Time & Sales... What is happening here?

I have a question about the relationship between the Volume and Depth of SPY options. I happen to have Market Depth and Time & Sales charts side by side on a SPY option today and noticed a consistent disparity between how much more liquidity there appeared to be relative to how much volume was...

Your probably right ...the Holiday likely isn't helping it act normal.

I would have thought Theta, but it just seemed to occur over a relatively short period of time (an hour) and despite the trade being delta neutral at the top of pivot high on the broader trend. As the underlying decreased in value the Call lost value as expected without the Put gaining enough...

I was paper trading a OTM delta neutral hedge today and noticed that over the course of an hour towards the end of the day both sides were decreasing in value and I wasn't exactly sure why. There wasn't a noticeable fluctuation in implied volatility and the underlying moved down enough to...

I was hoping to find an article or something discussing the topic to shorten the learning curve . ..I type in something "Range Efficiency" or "Optimal Range" even with "Trading" as a keyword in a Google search and I get my fair share of oven related links :)

I have been trying to find some information on the math involved in calculating the optimal frequency to range ratio of target trades. What I mean by this is if I target $.25 range a trade may present itself 600x a day on a $500 stock. If I bump that range to $.50 the trades would drop to...

Does the situation tend to be more exacerbated in longer term trade (i.e. one where you hold the position days or weeks) or a shorter term trade ( i.e. position held minutes or hours) ? And does opting for an OTM delta neutral position somewhat mitgate the issue or create even more of a...

Please explain ... I am very comfortable feeling like an idiot if that's what it takes to get a better understanding.

Is it possible from a percentage change perspective to determine at which point one side of a delta neutral position begin gaining value faster than the other side could lose value? And the second half of the question ... after a 50% decrease in value on the losing leg wouldn't the 100%...

I am trying to calculate a delta neutral position. Most of the time it seems the size of these positions are based on the number of shares someone is trying to hedge and the cost is whatever it ends up being to create the hedge. I am trying to calculate it for a trade the other way around...

Actually I am interested in calculating my exposure towards expiration. For instance AAPL made a 3+ Std Dev move today and I would like to find a decent way determine what effect that would have on a particular option. Obviously the implied volatility is probably going to be hard to...

I have been reading the pros and cons of various models for calculating the theoretical value of options, but there are quite a bit of varying scenarios where one model works better than another. In regards to American style options that are within a week or so of expiration is there one...

Been using TradeStation for trading options for a little while now and as a charting platform for the most part I am fairly happy with them. I have reached a point though where I am beginning to encounter limitations in the software's abilities to easily work with options. Simple things...

How would I define the difference volatility between these 2 different types of trends ? The first one is moving in a tight upward range all the way from the beginning to the end. The second one has a considerable amount of volatility at the beginning and then begins to regain a little...

I was hoping someone might be able to help me understand why the same magnitude of volatility adjusted movement in 2 different stocks can cause totally different effects on their respective options? I am adjusting for IV using a formula like this But I find that if I look back at...

From time to time if I happen to catch anyone of the many financial channels prior to the market opening it seems like they are always trying to predict which direction the market is going to open based on the futures market or the PreMarket. Is there any difference between the representative...

I think I figured out where my error was...I was trying to calculate Std Dev based on volatility and instead I was calculating volatility.

For some reason or another I can't seem to wrap my head around this equation, and was hoping someone here that is more mathematically inclined could possibly see where I am going wrong. I am trying to factor in the IV in my determination of a 1 standard deviation. Currently as it is being...