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Jim Beam and Coke is better. :D

I personally have never really looked at the weeklies but I would imagine that would make Vega a little less important but it seems like that would make Theta a LOT more important since there is not much time for all of the extrinsic value to decay. I would also imagine that spreads would still...

You don't have to just sell naked calls to be selling premium. You can sell naked puts, use a Bear Call Credit Spread, use a Bull Put Credit Spread, Short Directional Strangles, etc. All of those plays give you a varying degree of NEGATIVE VEGA exposure (short volatility). Many also give you a...

Actually I will try help explain Volatility a little bit. In an effort to make this as platform independent as possible I made a chart using OpenOffice Calc with numbers I got from ivolatility.com. I actually have this charted out in my platform but I threw this chart together to show how anyone...

It's not BS, but I am not going to teach it either. If he doesn't understand the Greeks and how they affect trades then he shouldn't be trading options.

QFT To elaborate on what electroniclocal said, you should should have a predetermined risk amount as a % of your total account you can risk per trade. Generally in the 1%-2% range. That is what you should always do. Don't risk more based on a feeling that a trade is a "sure thing", what if...

It wasn't the selling of premium that was his problem it was the deltas. There are a lot of spread plays for different market conditions. When volatility is high, you can use Bull Put Credit spreads or Bear Call Credit spreads depending on market direction. A directional Strangle might even be...

Why are you trying to bankrupt this poor guy? Hasn't he lost enough already? With volatility this high you are better off selling premium than buying it. If he did what you said and the market moved against him and volatility dropped he would get killed.

You have just found the #1 problem with most strategies. They do not work in all market conditions. I would not say to stop all together though. I see that you have two choices to continue trading. First is to learn a new strategy that can work in the current market (use a paper account while...

ROFL. That really is the best strategy though. Find someone that consistently loses money in the market and take the other side of all of their trades.

Yes the tool has been fixed now. It not so much a specific trade simulator as it is an account simulator. Basically it allows me to simulate various win/loss ratios at different % levels to see how an over all account will be affected. I am still have some tweaking to do.

I used VB code for two reasons. First this little tool does a LOT more than this one calculation. Second in this scenario, I wanted to also calculate starting and ending balances and various values automatically that would be a lot more steps and more time consuming using a calculator. Now, I...

1. The banks that are the lien holders on all the defaulted mortgages. They sold off the debt on the mortgages to taxpayers and other banks and investors through the toxic derivatives, so now they have free and clean titles to resell once the market bounces back. 2. The real estate agents...

I threw together some VB code to determine the values. In the code I multiplied the current balance by the risked % (1 in this case) and subtracted the resulting number from the current balance. I then looped through that code the desired number of losing trades and finally calculated what % of...

Ok so we are on the same page to this point. To me the big question is how do the banks, get to write off the bad loans, get TARP money to hold them over, 0% interest loans for themselves from the Fed (which is how many of them paid back TARP) AND they get to keep the houses the repossessed...

You tell me. I have been saying all along that the problem was that banks, loan officers, and agents practiced predatory lending. YOU are the one claiming it was all "Pedro's" fault for "outsmarting" the loan officer. For reference, here is what you said.

You are still missing the point. The buyer didn't go to the loan officer the RE Agent did. If anyone "outsmarted" the loan officer it was the agent not the buyer. Remember the buyer was doubtful they could afford such a house themselves. The agent convinced both the buyer and the lender that...

Yep this 100% true. The problem is the oscillator cannot differentiate the difference between the reversion of price back to the EMA or the EMA moving to meet the price. If the first occurs, you win, if the second occurs you lose.

If you are talking about the movie, it's fairly decent but just watch it on HBO. I am not sure it's available for download.

Pedro didn't make the deal. He didn't go to a lender and say "Hey I only make 15k per year can you please finance 750k for a house?". He went to a real estate agent and said I can afford $3k/month can you get me into a house. The agent lied to the buyer and more than likely fudged the loan...