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That strategy will hit a home run if the market makes a huge move, but that do not happen very often. Or you can keep most of the premium if the market do not move. Again, the market do make some moderate movement from time to time. I would like to see if you come up with some backtesting...

jwcapital, i don't quite understand the 2nd part "the underlying takes off with no more reversions". I guess the straddle would make money in that case (provided no change in IV and the underlying makes big enough movement).

If I do gamma scalping with a straddle and delta hedge with stock, I wonder what would be an appropriate % profit target (based on the initial straddle price and ignore any capital required for stock hedging)? To be exact, i mean - total scalping profit / straddle price (I just want to...

does anybody know if there is a web site to do japanese stock screening, like what stockcharts does for US?

the answer can be plain simple: trade stock: you deal with "delta" only trade option: you deal with 3 more "greeks" so if you can't trade 1 greek, how can you handle 3 more greeks??? even if you neutralize "delta", you probably can't neutralize "gamma" & "theta" to trade "vega"...

does anybody know how to get the option greeks in IB excel spreadsheet? Using the standard IB Excel spreadsheet, I can only get the delta and IV. How can I get the real-time link to other greeks????

- a few of you have pointed out the tax issue. actually i live in "some Asian country" where there is no capital gain tax. so i don't have to worry about tax provisioning. - i really admire jack's way to trade for a living. i think i'll feel more comfortable when the trading profit is...

actually i always wonder whether those guys make more money from trading or selling courses???

I'm just thinking of way to meet these 2 conflicting objectives: 1) take money out of the trading account to meet monthly expenses 2) grow trading capital Here is what I'm thinking: - at the end of each month, take out half of the trading profit for monthly expenses, and keep the remaining...

I've got a question on implied volatility. Usually, 1. the market goes down much faster than it goes up (not always, but usually) 2. implied volatility goes up when the market goes down (not always, but usually) So, considering the above 2 relations, can we say that implied volatility...

i just wonder what floor trading techniques is still applicable to screen trading, and what is not??? not sure if it's directly comparable, but is there any edge screen trading has nowadays over floor trading as in the old days???

got the answer....because of dividends

i'm looking at the option price of CAC40. hope someone could have an answer: CAC40 index @4051 now Apr 16 ATM option 4050 call @43.7 - IV 15.5% 4050 put @41.5 - IV 15.5% May 21 ATM option 4050 call @60.0 - IV 16.9% 4050 put @131.8 - IV 14.9% does anybody have a clue why the May...

can we get a hint from IV?? when huge volume are bought, it'll inevitably drive up the IV. also, option buying is more for speculation purpose. when people think a stock is going to make a big move on the upside, they would rather buy call option than sell put. the same is true in the...

......what are the major option prop trade firms in HK????

i've got a question on calculating delta with NDX & QQQQ options.... for example, if i have a position on NDX, and then i want to adjust the delta with QQQQ option. Based on Mar 2 close, NDX @1846.4 QQQQ @45.41 QQQQ Mar 46 call was trading at $0.36, with delta of 0.37 If I buy...

for option with value below 3 KRW, bid/ask spread is 0.01; otherwise the spread is 0.05. you can find the info on KRX web site. www.krx.co.kr

John, thanks a lot for your advice. That's very helpful. I really appreciate that!!!

Could you give us some idea how to determine a "reasonable price" for a spread, butterfly, condor, etc?? Given the wide bid/ask spread of SPX option, the natural bid/ask spread for a 3/4-legged trade can be as wide as 4 to 5 bucks. I just find it difficult to determine the price i can expect...

when i put on an order to trade SPX spread (whatever spread with 2 or more legs), the turn around time could be as much as one minute. Quite often, i thought i may have to increase my bid price for buy order (or decrease ask price for sell). I adjusted the price, but a few tens of seconds...