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I think one of the most interesting nuances of option trading is the calculation of Historical Volatility (HV) and how it misleads traders by understating true realized volatility. The commonly used HV formula looks at close-to-close prices, which ignores high/lows and path dependence...

Thanks for sharing your testimonial, good stuff. It would be nice to see a table on their website comparing their features to a few other popular options brokers.

I would not focus his time on black box HFT, as that really involves computer infrastructure more than quant work. I would ask him to develop a futures trading model based on yield curve spreads. This is quantitative, interesting, and has lots of potential if he is really a genius.

It sounds like you were a former TOS customer. I'm curious to know which LVX features, besides their beautiful Skew Charts, you feel are better than TOS?

I read your first book and liked it. I also enjoyed an interview you gave last year where you made a very interesting point. You said something to the effect that market opportunities still exist in trading volatility because there are not good trading instruments that allow a trader to...

For cross-asset trades, would it be accurate to say that your primary source of risk is a breakdown in correlation?

Sounds like a quasi-dispersion strategy. Are institutional desks and funds still active in dispersion trading, or has it lost popularity as "yesterday's" strategy?

I just checked and you are right. The last time I made a purchase this wasn't the case, so thanks for making this correction. Reviewing the onsite support options on their websites, HP offers a few more options than Lenovo.

The misinformation about choosing a gun is almost as bad as it is for how to trade profitably. For home defense, which I assume is your motive in getting a gun, your best choice is a revolver. It's the most reliable and simple to operate firearm, period. You don't have to disassemble it to...

The only requirement you have which is really not widely available is onsite repair. For home consumers, I believe Dell is the only vendor that offers onsite support through their network of local service partners.

Jack, you have a keen talent for articulating the subconsciously obvious. I tip my hat to you, good sir.

In the spirit of the season, I would like to share a document I found on the CBOE website. It was written earlier this year, though it's not listed on any of their web pages. Over 200 pages, it covers many aspects of volatility trading with options. Here is the link. Enjoy...

I have tested volume extensively to discover any potential use as a timing indicator to forecast what happens next. This is a reasonable thing to try. After all, we only have price, volume, and time as the basic variables. I came to the same conclusion many others have, which is that volume...

I was just reading about the "dynamic roll" method they use to minimize the impact of contango and resulting negative roll yield. I was looking for a way to play energy that didn't suffer from this common problem that commodity ETF's have. Thanks for pointing this out!

For last year, I don't recall if they actually mailed tax docs to me. If you login to the Tradestation.com website and check your account screens, the tax documents may be there. Mine are.

Some sage traders on ET have made the point that to be successful you have to be able to predict direction or volatility. Once you can do that, then step 2 is choosing an options strategy with a risk/reward profile that suits you. So step 1 is getting a handle on direction or volatility...

Were these large e-mini positions in 2011 (now SPY in 2012) a portfolio hedge, or were they speculative trades?

Averaging over a year, that's $1M per month, or approx $50K per trading day. Using the ES e-mini, that works out to 1 point of profit per day ($50) with 1000 contracts. Impressive.

Thanks for this clarification. However, this strategy made more sense to me based on [my misunderstanding of] reversals at high/lows. It seems quite arbitrary to be long-only or short-only without any context of trend. I suppose it could still be effective with good exit technique, which...

I just retrieved some files off a laptop hard drive that crashed and I thought I'd share this success with you. I read about this solution on other computer forums but I wasn't sure if it really worked or it was just an urban legend. You remove the crashed drive and place it in a plastic...