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yes; but its pretty hard to figure out which perf results are good due to chance vs structural advantages (since very few of them exist). Even if they found someone trading well its possible that its hard to emulate or scale or follow - and even if done correctly, the system might just fail...

Not exactly. Assignment risk exists anytime when premium is small enough to offset carry cost for the assignment. It happens rarely but you can get assigned anytime a leg is in the money - specially deep in the money (has happened to me once or twice in about 2 years of trading fop's). -gariki

It is true that in general if stuff stays back on server it can get stolen - but in general, most of the stuff is garbage. So for someone to pick out good from the trash is pretty hard. If someone can understand the differences, yes they can steal - but thats not an easy job. That said that...

+1. Totally agree; awesome post and good advise. You surely must know how to trade it correctly; all you need to do is simple buy bottoms and short tops. There is a toll free number to call for perfect timing advise as well. ok.. here's the secret number: 1800GOD. Now pay my fee please..

Ser Man, i've listened to a presentation; they are just a bunch of clowns selling wares. Stay away.

If you have the ability to play market maker on both the exchanges you can play that game. Its hugely profitable; but not if you have to bite the bullet on either one of the exchanges. And i dont know much about it but there isnt any other liquid market where you can offset the risk either. So...

The only reason to be associated with any prop firm is when you need leverage (even that is debatable since there are other ways of getting leverage). Do not expect them to provide you with anything more than that (do not look to gain an edge because of a prop firm; it isnt there); and for that...

Not thinkscripts (i use Amibroker to model; and dont really care to convert). I mostly use thinkBack. Here is a sample; see the N/A prices around the ATM call and put; if this happens in the middle of a backtest, you pretty much have to redo that trade after restarting the application.

mjl13, Can you backtest option strategies with Ninjatrader? Looking at their website http://ninjatrader.com/Simulate, it seems its only for futures. Have you been backtesting option strategies on Ninja?

I've tried optionstack briefly but its hard to build custom strategies using it. For example try selling a straddle or an IC once every 15 days and adjust when say a wing is hit. Not sure but doesnt seem you can test custom strategies with it; only canned technical studies based ones. Maybe its...

Hello folks, I use tos backtesting quite a bit but recently been hitting bad data issues; like N/A values for even the ATM straddle prices in backtester from time to time; so looking to what else is there out there to test custom option trading strategies. I know optionvue is one option...

Dont worry Mav. Whoever sold them will manage them (wink); roll them out and reduce risk :)

wow.. that stinks bigtime. Wonder if an IB rep can jump in and add any clarification to why it happened.

Sig, wonder if you were very close to or over a margin call; that sucks if IB closes part of your position automatically. Can you provide more context? I've had a few assignments (which dont change the risk) but not auto closing - fingers crossed. -gariki

Thanks for the link Sig. I will have to read it more thoroughly but it seems CME is saying that exercise will be based on a rounded value of Settlement price; that kind of stinks since that means for locked in positions there is still a pin risk. "358A01.E. Exercise Prices In each month in the...

Let me rephrase; if say it settles exactly at 2000 and you have a long call and a short put at 2000. And say a short call at 1950. Now what is your position coming into Monday? (for serial option series).

jeb, According to this CME link, http://www.cmegroup.com/trading/equity-index/us-index/e-mini-sandp500_contractSpecs_options.html, Quarterly options (example this June 3rd week options) stop trading at 8:30 on Friday - then my understanding is the settlement price is what determines which of...

Sig, You are kind of right; for Quarterly cycles (June 3rd week options for example), it probably doesnt matter since the options will settle to the future which will immediately settle to cash. But for the other months, if you have a box, for example short 2000 Call and long 2000 put (for 2...

Hello folks, The way i am reading it, given the current way CME is calculating settlement price for ES it seems that if you come into expiry with locked in positions (conversions, boxes), pin risk is eradicated. Because given the volume weighted calculations, settlement will very very likely be...

Good outfit RedDuke. They are net premium sellers but not naked. That is the only way to sell premium IMO; they do hedge tail risk (buy some sort of wings). "Additionally, LJM Funds must reinvest a portion of the premium or revenue generated in order to hedge against extreme events. LJM Funds...