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Selling options is much like running an insurance business. It can be profitable, but insurance companies do go bankrupt.

Still not clear to me. The question is, essentially, which exchanges have all the limit orders displayed, regardless where the orders are from (MM or whoever).

You are talking about the "SMART" routing most brokerages offer, but you can also use the direct routing, i.e. sending orders directly to the exchanges of your choice, like AMEX or PHLX or CBOE. My question is if these exchanges have dark pool liquidity.

Can you tell me what route destinations I should select to access the dark liquidity? Does CBOE or AMEX have any dark liquidity?

I doubt if you route your order to CBOE you'll go through the dark pools.

IBKRATS is not on the list for options.

I'm trading options through IB's direct order routing. They have a list of destinations you can route your orders to: AMEX, BATS, BOX, CBOE, EDGX, GEMINI, ISE, MIAX, NASDAQBX, PHLX, PSE. If I want my orders to be exposed to the dark pool liquidity, which ones on the list provide that possibility?

Has anyone borrowed money from friends and family to trade? What does it take to convince them of your ability to make money for them?

Agreed, but that's not the point of the question. I'm just asking technically how quickly this kind order can be filled.

Has anyone sold options at far out OTM range where the bid is largely 0.00? If you put a limit sell order there, what's the chance of being filled (i.e. how long did it take if ever?)

So if a buyer really wans to buy he will likely buy at the ask price.

PM, if the buy side is really motivated wouldn't most trades be at the ask?

Thanks PM again. Your are the only one who knows what I'm talking about. The most likely cause of one-sided surge of demand is buying from insider trading or determined speculators. I agree it's pretty rare and no gurantee (if driven by speculation). But I believe the odds should be much better...

Thanks PM. Have you applied this kind of observations to your trading and does it give you any predictive power in directionality?

Sorry I did not make my question very claer. I'm not talking about the premium, which includes the intrinsic value and time value. I'm talking about the IV which should be the same for a call and put of the same strike and expiry. In other words, if you see the IV go up, how do you know if it's...

New to options. After reading the basics one question arises is this: if there is an increased asymmetric demand for calls and thus driving up its price, by parity relationship the corresponding puts price should also go up (i.e. driving by arbitrage). In this case the demand for calls is the...

have you done any back testing?

Per capita income $46k? That's GDP not income! Every prisoner generates about $50k GDP per year.

But if you don't report the short sales (the "sell to open"), there will be a huge discrepancy with the 1099 your broker sent to IRS, because these "short sales" are reported as if the are sales of a long position!

If you do this, how will you ever report any gain or loss later when it is realized? I assume the brokerage will not report the "buy to cover" transaction.