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tntneo, Just to clarify your point about what is possibly not allowed in options.Some rules imposed by exchanges prohibit customers from simultaneously posting a bid and an offer on the same option to try to mimick a floor market maker. Some firms also will charge for fees for excessive...

You might need to subscribe to a charting package which computes historical vol using close to close or high lo close values. Systems that come to mind are ensign, linnsoft, optionstar, optionvue, optionclub.com. Good luck

I am anal about clutter. I have 3 kids and very hard to keep dirt and clutter out of house. Since I am anal retentive w/ 3 kids a good % of my time is spent cleaning.... BUT it definitely helps me trade better. Why? Zen people calls it keeping centered. Different people have different ways of...

Once I find real good trades I will post them in this board under options. The CCMP trade really depends on what trader's outlook of the stock is. Does he expect it to make a big,medium or small move? What timeframe? I looked at optionclub.com to look at the historical vs. the implied and...

To Babak. A calendar or time spread involves buying the back month and selling the front month usually at the same strike price. The calendar spread has a risk profile wherein the spread makes money when the stock hovers near or better yet at the stirke price of your calendar. An example...

Shortee. I threw out my back again after reading your line about fixing hitman w/ Don's niece. You're the best!

In the scenarios described above a trader can protect himself or even take advantage of that vol spike situation by structuring trades in a way to take advantage of the spike and still profit from forecasted direction or at least not get hurt too much in the situation that freehouse described...

Gene, thanks for your post. Do you think the new exchange called BOX would be as close to an option ECN and do you think the older exchanges would be forced to adopt an ECN model due to this new kid on the block?

Look into linnsoft.com. The catch is you have to predefine the spread before it starts to catch the ticks. Example: If you want to start looking at the PSFT / MSFT pair, you define a formula. At that point you will start collecting the ohlc of the pair and can't look back. Nice thing about it...

Vulture. you said.... "where market must have forced many adjustments at extremes only to return to the center and just drain more theta...(OEX) " When you are gamma scalping, you are hoping for a reversion to the center after your 'extreme' adjustments. If you are long straddle and...

You can use Excel wth REDI through a DDE link Once you have it in an Excel spreadsheet, you can pretty much use that or useAccess / VB / VBA for more robust customized reporting.

Yes, both his first book called options,perception and deception and the second one is pretty complicated. I have been a options floor trader for 5 years and in spite of that, I still had to reread certain chapters, even though I knew the concepts intuitively. A beginner would be better off with...

Hi. I read a couple of posts here about how good TOS is and was wondering how their experience have been after the 'honeymoon' period. I am thinking of opening an account with them because they have the ability to fill option orders as a spread. I currently use REDI options and would need to...

I agree with 90% of your points here but got confused when you said that gaps would mess things up. As a straddle holder, you would pray that gaps occur so you can adjust your deltas. Can you clarify why you think gaps would'nt be good when you are long gamma? thanks

If you are a scalper trading in and out 20-50 times a day with size to capture small profits 5 to 10 cents, the second deal would be much better. This reminds me of the Schonfeld deal except that they don't have to come up with $ but their split s something like 25% of gross. Would you be...

check out linnsoft.com. They've been around for a long time-they have scanners, backtesting,nice quote pages and charts and multiple options for quote feed. Sort of the poor man's first alert.

I guess if one looks at a much longer time frame and keeping in mind that 1999-2000 'bubble' is an anomaly-'a hundred year storm' if you will, then the VIX is indeed overvalued. I wouldn't personally sell it but if we are talking strictly numbers then he might be right.

I have been under the impression that the VIX in the low 20's is low but check out this weeks Option corner in Barrons which proclaims " It may take years for the VIX to settle down !" huh? It outlines the fact that the vix historically trades around 17% with the stocks around 13 % on a...

I just looked at my implied vol charts on RMBS and just want to give you a heads up on the RMBS options implied volatility -which is a measure of how expensive or 'fat' the option premiums are on a particular stock. RMBS options are trading at a 2 year low with its high around 151% and low of...

Let me suggest the best defense-get out of your position. the risk reward scenario on the two trades are just too great on the risk side . Why short a stocks that has already gone from x to under 10$. If you still think that it is a short then buy puts-this way your loss is limited. If you...