Search results

IV, delta, Gamma, Theta have to be watched. VIX is watched by those that trade anything related to s&p. If you're trading MSFT options, then you should watch MSFT IV. And not just the month you're exposed to but the whole term structure. I recommend you read Baird's book...it's eye-opening

http://www.nuclearphynance.com/User%20Files/2/Dispersion%20-%20A%20Guide%20for%20the%20Clueless%20-%20Version%201.pdf

They're not comparable. With stock you can vote and it never expires. If the stock hardly moves, you take a small loss every time the option expires worthless. Having the right to own a share at a certain price is not the same as owning the stock.

. oops

what percentage of capital do you guys risk? If vol spikes, do you increase your position if your view on vol hasn't changed or do you take small losses by reducing your position...or sit still and wait for expiration

curious to see a backtest of this strategy

Thank you

So is Smart routing just used for marketing purposes? Wouldn't you have to send it to the exchange with the best price anyway?

Bear put spread = collar since options are adjusted for interest and dividends expected during the life of the option in question. If you want pure volatility, you can delta hedge your long call...

I wouldn't have gotten out either...not at 1 tick, anyway. If I'd lost more and the reason for getting into it was no longer applicable or valid, then I'd get out, but one tick?!

Another vote for Filthy's book. It's very mathematical in the calc and stats sense, but the options side of things actually is very enlightening. Even if you are not a PhD in theoretical physics, the trading analysis and risks are very intuitive...

Options market making by baird is really good. It's basic+ as it has several strategies and risk parameters that might be overwhelming to someone new

The Yates Model The Yates model was developed in-house at OptionVue Systems International with intensive research and testing. It is a refined Black/Scholes model that takes into account dividends and the possibility of early exercise. When used for American call options, the Yates model...

Len Yates of OptionVue6 adjusts the BSM model to reflect the possibility of early excercise... does anyone know what the adjustment is? In OptionVue software, there are 3 available models to price theoretical prices on any given strike: cox/ross/rubenstein, BS, Yates. A little help would be...

I'm running a 14-day trial on OptionVue6 and love it. It is limited in terms of multi asset modelling (eg, long aapl,goog,msft,amzn calls and short equivalent qqqq calls), but the vols scenario analysis is great. It's certainly not the cheapest software, but can do backtesting, real time data...

If you had to choose one for diverse selection and best quotes: Arcabook Nasdaq Totalview NYSE Open book thx

How much better is the execution at a prop firm than retail? Prop typically has direct access to exchanges, no? Retail goes through a couple of layers before reaching the MM doesn't it? For example, at IB they first try to cross your trade internally then they use Smart routing (but isn't...

I would look at Optionsxpress or ThinkorSwim

what if the $6 puts go from .30 to 1.00?

zenith resources...not a hedge fund, but a CTA. You can use IASG.com for further research