Search results

I agree that it is easier to predict vol which is why I trade options. Small stocks have much bigger spreads on the bid/ask IVs which is what I was refering to above.

I wouldn't hit a bid or take offers in these stocks which is why scanning is important. You would need to find options sitting in the book that the crowd is running away from and take 'm out. You give up a huge amount of edge doing anything else.

I have traded a couple of small stocks as a MM but don't now. The edge is much bigger which is compensation for the fact it may be the last time you trade an option in that stock until expiration.

You mean, you can find edge on stocks trading for a couple of bucks? Either way you are long and, at that point, I would consider any short itm put to be long stock. The difference being better entry price and a cap on profit. The way to decide is to think about how likely it is for the...

You will find that smaller stocks have the most edge. I only wish I had the capital, like Nitro, to constantly scan 100,000 symbols and then hold the resulting positions.

Something to think about.

ivolatility.com

Hey, I answered one of three definitively. My pithy Metooxx like answer wasn't as imformative as his. This trade is actually my favorite position to put on. Played right, it gives you many opportunities to profit in a variety of different scenarios. How it works depends on conditions, some...

Most likely they printed the trade for the wrong strike.

try getting away from using stock to hedge. I pass up trades because sometimes the ratio you want to analyse isn't worth it. Why make a trade for a couple hundred bucks which could tie up my capital for a week or two and leave me unable to do anything else? The last thing I look to for a hedge...

sold another 10 lot of 17c for .15. Going into earning long 300, up a point short 500. ET didn't post this message on time but the stock looks unchanged at this point post earnings.

bought five of the july17c for .45 and sold 5 of 15c for 1.10; long 400 deltas

bought ten of the jun15p .50 bought a 4 lot of the 15c for 3.4. long 600 deltas based on a 45 IV, which is probably high.

sold 5 of 15c for 1.20

2 more july 17s, have a couple of orders out ther, a sell 5 of the 15c at 1.20 and a sell of 10 of 17c at .20

up/down 1.75, 200/-800

still long 800 here, up/down a point long 600/200

sold 8 of the may 15c for 1.15