Search results

I also traded soft commodity options on the floor and always envied the off floor traders since they are privy to more tools plus 'inside info' than my measly fair value sheets updated hourly by my clerk. Like you said it is not easy on or off floor lately. I just read a book by Farrell...

I am thinking of trading options to complement and not replace my daytrading activities. Keeps me busy and out of daytrading trouble during the dead zone. I am not in a position (yet) to refute your friend's assertion that no one can make $ trading options. I will find out . There is just too...

When you mean theor straddle do you mean not actually buying the straddle and pretending to scalp it? That sounds dangerous since you won't have the 'insurance policy' to protect you if the underlying keeps going up or down. Regarding option software, there a very few out there that is...

Thanks for your unique insight Marc. Can you give me some clarification about gamma rent? Does this mean vega? I intend to put on straddles lower than historical vol as well as lower than its own vol. Example today is BA. If HV of BA is 30 and Jan ATM options today are around 27 which is...

Has anyone tried this with consistent success in stock options? I've tried it with good results in the futures market 8 years ago and was wondering if anyone here does it with stock options. I would think there would be a lot of cheap(er) straddles out there since there are a lot of covered...

Here is an example that might help regarding gamma scalping. Assume XYZ stock or soybeans or some other optionable contract has a historical vol of 40% and you are able to buy a straddle around 35% providing you with a theoretical edge. By buying an at the money straddle-long 1 call &...

Is there a material advantage in paying $60 /month to get the full contract SP futures quote (i.e. SP Z1 or SPH2 in most quote services) as opposed to just subscribing to the E mini futures (i.e. ES Z1 or ES H2) which is currently given away free by the CME for 6 months. Wouldn't the very...

I totally agree with you Gene. I too, was on the floor for 5 years and saw the futures options change from being inefficient to efficient . We were doing flies for credits then...ahh the good ol days. But would you agree with me that this maturing has made it easier for desk traders to...

I really appreciate your insights Gene. Would you say that there are more successful outright stock traders there than option traders? DO you think it is a function of traders don't know much about options so they gratvitate to the easy thing to do which is daytrade? or is there no $ to be made...

Anyone there interested in selling their used Charles cottle book. Email me at gjalind@optonline.net

To Jem: The only subject I heard about gamma scalping is the the in house training my company sent me 10 years ago with Sheldon Natenburg: I think it set my co back about $800 for 2 days. Basically, the gist is to buy IV below HV and if the HV estimates come into fruition then you should...

Maybe I mispoke or mistyped when I said gamma adjustments. Basically what I had in mind is to look for a straddle that is < hist vol. I would then buy 10 calls and sell 500 shares for a delta neutral position, stock moves up 1.5$ sell 100 shares to be delta neutral, stock moves down $1 buy it...

I have only done a couple, so I can't say that it would be something I'd do indiscriminately, I have done a lot of flies as a floor trader in futures options. That is the reason I am fishing around for info about stock options and valid option trading strategies. I am going to be trading...

If I may ask, how much are you paying, there are brokers out there that will charge per contract as opposed to per trade. examples are interactive brokers-$2 per, so if you buy 1 fly that is a total of 4 contracts-$8 total.

Does anyone here trade butterflies? I am thinking of looking for expliding IV's and then selling the most expensive straddle and insuring them by buying the wings to form the fly. I plan to sit and wait and hopefully collet premium as the IV's regresses to the mean IV. HAs anyone one that with...

I have 2 monitors running very well in Win 2000 Pro using the appian dual card. I needed a third monitor so I bought a PNY technologies single video card. When I rebooted, the system used the just installed card as the primary monitor. According to Microsoft, I should go to control...

I have 2 monitors running very well in Win 2000 Pro using the appian dual card. I needed a third monitor so I bought a PNY technologies single video card (PCI). When I rebooted, the system used the just installed card as the primary monitor. According to Microsoft, I should go to control...

To Dufferdon. That's what I mean by initiating trades basis underlying market decision as opposed to initiation based on option premium levels. Outright put buys could be offset by selling the lower strike on the puts, which somewhat protects the position from an implied vol implosion...

To AAAinthe beltway: Your post about option trading sounds intriguing because very few people seem to use options as evidenced by the number of posts in the 'options' section vs. daytrading stocks. I am a trader for a prop firm and have gotten tired of trading 50 times a day to scalp...

A long time ago, people used to put on hedged positions to avoid buying bullets or conversions and to get around the uptick requirements. The broker would put Long 1000 shares of abcd in account 1 and a legal sell short of 1000 of abcd in another account related or cross guaranteed to the...