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Exactly the reaction I had. I seriously think he's just messing with us. He's like George Bush- smart on the inside but acts all dumb on the outside so he can confuse people into believing so. Meanwhile he quietly makes money while laughing. Tell me I'm right? Noone can be that...

Initially I read "I got a daughter interested in you..." HAHAHAHAHA

Can't wait for atticus to reply to ForexForex... Welcome to an exercise in convexity ForexForex...

Take it this way: You are given two choices- Choice 1: you make $1 a day every day with a 99% probability. But can lose $100 with a 1% probability. The choice has worked continuously for the last 2 years (you did some backtesting) Choice 2: You lose a $1 everyday with a 99%...

(Long) Straddles and strangles are, for the most part, one of the least of my favourite strategies- especially if the market is bullish. Stocks barely crash up- and when they do the implied doesn't really crash up either. If I could manage the margin requirements (my account is small but...

And btw, if you think convexity is a "big word" then logically you should have been against it in 2007, 2008. Those who understood convexity, gained. Those who didn't- failed. And among those who failed, some managed to get your taxpayer dollars and go right back into ignoring it. Now THAT is...

And the source of your information is...? Oh wait, nvm, you were there yourself. My bad.

Kinda confused here. So 1-2 cents per contract as in 1 option contract representing 100 shares? Or as someone said multiply by 100 to get the actual $1 to $2 per contract in which case that's mad expensive!!!! How come I only pay 0.70 per contract so a 10 lot costs me $7 with a minimum...

Or maybe slightly deeper OTM options? Similar premium same size?

If you're betting on volatility, why contradict yourself and cap the profit? The whole point of going a long straddle or strangle is you know for sure the stock will get naughty. And if it doesn't move, you'll close out your position anyways- it's asinine to hold on to an underlying that just...

You mean IB or ThinkOrSwim? ThinkOrSwim is just a paper trade account :D IB on the other hand I'll try some java with it soonish. Should be fun to fool around with.

Me neither. I don't think anyone would since that's not the definition at all. Given the limited number of earnings, the variables to be taken into account- everything from macro factors to how the underlying was trading, are enormous. Not worth all that effort. Treating each event...

First you say this the following in this thread: http://www.elitetrader.com/vb/showthread.php?s=&postid=2133958#post2133958 Then you say the following here: http://www.elitetrader.com/vb/showthread.php?s=&postid=2726864#post2726864 So first you say you're employed at a prop firm...

Scammers at my P.T. job do it all the time. Activate an account on a contract, resell the contract to someone with lesser credit and sell the phone overseas- $400 gain!

I'll make it simple for all of you: Just use Call-Put parity. Problem solved.

Pretty sure those were the words- That's dirt cheap! I pay 0.70 with IB and I'm happy. Has to be one of the cheapest out there.

I was referring to back-testing for earnings related moves. So even if you analysed 3 years worth of earnings activity, you have 12 data points to work with. Now, to be fair, that is a lot of data points in the context of earnings. But they all could have happened under so many different...

Could you elaborate on how I would trade fewer options? Don't quite grasp that. Gawd I need sleep... pulling an all nighter here...

But IV is dictated by the option price itself- unless all those codes I wrote a cpl years back for this undergrad class was in vain... What am I missing? The mean expectation of the moves .. is the vol of the vol also important to consider then? Wish I could get my hands on some of that...

Thanks a lot amazing. Kind words. And I'm not Sonoma... .. got the wrong handle there..:D