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Prefer strangles over straddles to get wider vega exposure on the smile...so condors more often.

I'll butterfly short straddles, and condor short strangles....to minimize risk.

It kind of depends on what you have on and what you're trading. If I've been buying OTM calls and selling OTM puts in a trading session, like what many SPX and NDX MM's are stuck doing all day, then I'll pay up to buy some far out "garbage puts" to minimize the damage on a correction. The same...

A lot of prop firms prefer the Sortino ratio over Sharpe. Positive performance volatility is a good thing. It's the nightmarish negative P&L volatility and max drawdowns that keep risk managers up all night.

Not sure how they exactly work but try quoting it as a Flex. http://www.cboe.com/products/flex Xandman is right that they'll be laughing at the request, unless you come in with a big order (500+ lot). Regardless, the main MMs are going to make you a wide-ass market. And when you show your side...

Then you'll just have to avoid DITM's in less liquid high priced equities....unless you're willing to bankroll expensive stock purchases. I'm guessing rich high flyers like TSLA, AMZN, and NFLX have pretty liquid DITMs.

If he can't sell the illiquid put outright, buying 100 shares of XYZ is the right move. He could then just quote the ITM put and 100 shares together as a put buy write spread to liquidate the position...if he doesn't want to sell the call to put on the conversion. The big delta of the put...

Against $1.25 XYZ stock price the ITM $3.00 put is worth $1.75 (intrinsic value) + [extrinsic premium]. The same strike OTM $3.00 call is worth just the [extrinsic premium]. By exercising the put too early, he is selling the [extrinsic premium] for zero....only locking in the $1.75 (intrinsic...

Buying the shares locks in the intrinsic value of the put...selling the same strike call locks in the extrinsic value of the put. Or if there's plenty of time (DTE) left you could let the position ride and sell your shares out on a bounceback rally. If you sell the shares out at $3.00...

By buying the shares you now have a "free call". Sell the $3.00 call for whatever you can get for it to maximize the trade. Make the $175 difference + credit for selling the "free call."

Worst case scenario, you should at least be able to sell intrinsic value ($3.00 - $1.25 = $1.75) for those puts, which are now deep ITM. Don't sell them for anything less. As TaoWave points out buying 100 shares will make you synthetically long the $3.00 call, but you will have locked in $1.75 -...

Best of the bunch. Comprehensive and an easy read, covering all vol-related theory and strategies. Free download too: https://www.pdfdrive.com/trading-volatility-correlation-term-structure-and-skew-cfe-e3008836.html

Long 100 straddles would have made $450k+ at today's high.

You would have made a fortune being LONG the 7.50 straddle for 5.75. Good thing no one here sold it.

Would have had to double down on the short straddle just to get back to even.

Despite being overbought, there's signficant upside for gold & silver. People are going to be buying on dips, and like tech stocks from 1996-2000, metal prices can rally irrationally higher for years.

1. "...has to move the right way" Huh? o_O 2. And your definition of fast is.... "Accelerate fast enough with terminal exit velocity" would have sounded cooler. 3. Many of us have made plenty of money on OTM calls before they go ITM. They simply just need to go up in value. And many of us...

Much easier to predict direction of implied volatility than direction of the underlying.

Better price depth with more MMs during "off" (night) hours, but definitely LESS volatility with no more ugly price gaps between the close and opening.

"Only losers don't add their losers..."