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Risktaker mentioned a problem with playing a stock like IP, it can take a while to play out. Your capital can be tied up unproductively. I wonder if this selloff doesn't have as much to do with the dollar rally as anything else. Maybe if it rallies further estimates will have to be taken...

This stock is getting hammered today. It's back to its lows of the bear market.

I don't know anything about the buyout, but I know the firm well from the Pcoast. If I'm not mistaken, they were owned by the Engman's who also once owned Sage, now Merill Pro. I would imagine they do a fair amount of professional traders business because they didn't seem to compete for...

I would say look at two things. First would obviously be the implied volatility, this may be substantially cheaper in the next month out. This could be important as a rally could cause the front month to come in. Next, the bid/ask spread could be wider in the next month and could cost you .10...

I've thought about it, but our gummint has decided to make it extremely difficult to trade the products I want in foreign markets, mainly equity options. There is also another issue that I can't seem to get around and that is I would have poor information resources to track companies as well as...

I hope I'm wrong on this, but I think you just legged into a possible loss. Those 60 calls will get exercised with the stock right here. The cash flow looks like this: 1. sold the box for 10.30 2. 60 calls get exercised, sell stock at 60 3. pay .73 dividend since short stock 4. the 70p...

This isn't option related, but I'm surprised at where this stock is trading. Thi stock never really rallied that much over the past few years which surprised me as I thought it would have because of the inflationary bump we got.

It took me a second to realize that this is MO and not GM. I was about to say that those 70 puts were going to be exercised early. When's the dividend? That could throw this off a little.

Definitely don't throw them out. Rather, analyze the outliers seperately. In a lot data analysis you would just toss em and not worry about it, but to us they are important. You could look at the P&L of the system as a whole, the P&L of the outliers and the P&L of those removed. I came up...

Just load up on the nickel otm calls. Just kidding. A well defined time frame can open up the possibilities as long as it is stuck to. I once in a while like to buy the next month out otm calls. I have had some pretty good succes with them while selling some of the front month against em...

Good post, a couple of thoughts about it. I come from an options perspective so this is not totally applicable. Markets can trade a little differently from my perspective. This is true when comparing equity and commodities, but for a system this may be irrelevent abd signals may work the...

Thats a really good question and I wish I had a lot time to go through to think of everything. This just a quick thought, but a good volatility analyzer would be nice if it was included in the trading software. There are a bunch of different ways to calculate HV a menu of options or a way...

Yes, I'll stick with my first option, the nothing spread.

I've actually thought about moving because of this. Unfortunately, there aren't many civilized places between Signapore and Europe without a bunch of people who like to kill Americans or rob relatively wealthy ones. I would prefer a 7:00 pm start and 2:00 am close.

My first thought is to say to avoid. After that, there is always the butterflys. However, there doesn'y seem to be enough volume to leg into one for a good price. My last thought would be to sell the May/June 45 time spread. The vols across months seem close and you'll make money on the vol...

I forgot to add my opinion about IB. They're fine, but I'm leaving. The options part of the platform is a resource hog and sometimes you just shake your head wondering where they get some of the greeks. The fills are fine. If I was sticking around, I would write something of my own to trade...

Most equity options markets are electronic or at least you trade it electronicaly even if somebody is standing in a crowd. A lot of futures options markets in the U.S. aren't electronic.

I've never used an autoquote system, so I hoenstly wouldn't know. I would imagine they still manage their position by person instead of allowing AI to do it. They basically adjust quotes by adjusting the IV input or by leaning a specific option by .05 or a .10. If a MM is offering something...

Back in the old days of option trading, the late nineties, the most active option series in active stocks had prices adjusted manually by market makers in the crowd. If during the middle of the day the stock just drifted around, the remaining market makers may not lift an order out of the book...

That's a good question, I would say that generally for a single order the MM would only change the specific option that was traded. For larger, more liquid stocks, it isn't one order that would change the implieds, but rather sustained order flow. This is assuming that the pricing is around...