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Part of the problem is that many moves are before the open or after the close. You have to adapt.

MAV, Before the advent of portfolio margin, I agree with all these benefits, if you did not have enough capital to be a member of an exchange on your own. The 60/40 can be big. Are JBO members exempt from self employment tax like "customers" are? Also, institutional relationships don't normally...

At 115, if the calls are trading at parity, I'm up $5000. If the calls are trading at parity, the IVol is not relevant. The Vega on these DITM options is very low.

MTM only relates to ignoring unrealized gains as unrealized and booking them at their EOD market prices. For tax purposes, this is done on December 31st.

Sure. I buy 1000 XYZ at 100 and sell 10 Jan 100 calls for $5.00. You do the other side. The stock moves up to 115 in three months. If you exercise your calls early, and I get assigned, I lock in my profit early, don't have to hold that position until expiration, releasing margin, and no longer...

Not with equity options that are American Style. I lock in my profit by being assigned. There are two exceptions. Options on hard to borrow stocks and ITM options if the dividend is high enough that being assigned I lose my hedge and the dividend.

Sorry, I'm just not sure what the point is. I'm trying but it's over my head. Here is what I know. Option seller always have more risk than option buyers with American style options. Option sellers don't have more risk with European style options. In fact option sellers have an financing edge...

When you say," The implication of the volatility change is different for the seller of European Style options.", I'm not sure what you mean by "volatility change".

Perhaps I'm not understanding the questions as you are phrasing it. I'm telling you that American vs European only effects the value calculations of ITM options. It does not effect anything else that is material. If you would like a different response, you will have to ask the question in a...

No not really. The ability to exercise early provides a different value for the options. In fact, it tend to make it worth less because you have lost a right to add value by having the ability to early exercise it when it is to your benefit. However, it does not effect volatility. It is possible...

Try contacting esignal: http://www.esignal.com/compare-products/?tc= Bob

Happy to chat one day. In the mean time...check this out. http://www.dbo.ca.gov/Licensees/Broker-Dealer_and_SEC_Investment_Advisers/Default.asp

BTW, I have many friends in this business that work for the big firms. I also have clients that run their own businesses with Separately Managed Accounts (SMA) as RIAs and also are looking to start hedge funds. To do this, you need a verifiable track record. To be an asset manager at a firm like...

There are many ways to manage money. You have to check with your state's securities laws for exceptions. EG, in NY, you can manage up to 5 clients without registering as an Investment Adviser. I don't know enough about your situation and what you want to do, to advise you any further. If you...

It is a very time consuming expensive process that requires members of the firm that have experience with the items you are looking for a approval for. If you just want to trade, you don't need to be a broker dealer. If you want to start your own trading firm as a BD, you don't need to be a...

I never traded index options. I traded equity options. They had a predictable pattern around earnings and events. Option flow was predictable and option vol was too, for many years. Direction....to me...not so much.

They are highly correlated. If you get one, you can often predict the other.

I was an option market maker for 25 years. I can tell you that you need to plan for the unexpected, but use the past to base your assumptions. That gives the highest expectancy in my opinion.

http://www.finra.org/industry/series56 Series 56 - Proprietary Trader Examination (PT) On January 4, 2016, this exam will be replaced by the Series 57. Please see Regulatory Notice 15-45 for more information.

You don't. You have to make assumptions.