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they're not insulting you they're trying to help. Anyone that spends that much time typing out an explanation like that is definitely trying to help you. This site has been a great tool for myself, and the members that are posting to help you have helped me both directly and indirectly on...

dude, e-mail a moderator after 3 posts... i think it's your computer. this is the page it takes me to http://www.interactivebrokers.com/optionsCommentary/elitetrader/ maybe change your browser?

my horror story is a few months old. I had a BWB on Activision-Blizzard I think they were NOV expiration, and there was a huge sell-off I was short vega, and my risk was to the downside. Well anyways, 2 weeks to go, IV spiked up, and the stock dropped. That one was a bit...

i believe you're referring to a "whipsaw" were the prices based on the options or the underlying? personally, i follow the underlying since option prices are subject to other risks. for example, if i rely on support, and it's broken, then i'll get out. But if my position loses 50%...

Actually, personally, I avoid expiration week. -ve gammas mean price is way too sensitive if I'm long verticals, they'll be closed 4 weeks ahead worst case. If my move didn't happen by then then I need all the time value I can buy back. Also, it does matter if it's play money IMO since...

wow, that's awesome actually I guess the question is, can this be done consistently?

Asiaprop, i'm ok hearing I'm wrong. It's the only way I'll learn. (if any of that was directed at me). :)

That makes sense... I'm just curious then... couldn't a MM provide a market for options that is technically overpriced? When I look at BRK.B, that's how I would interpret them. Even though HV is low, IV tells me that MM's are asking for way too much. So what you're saying is, HV and IV...

right... which is based on something near HV i thought... Check out LQD for an example... I know! since i lost coin on the low volume! according to TOS, IV is 5.98% and HV is 5.33% 1 point is not a fair sample, but one that comes to mind that basically has no activity on it.

^ I can't tell if you're asking me b/c you want me to realize something, or if you're asking since you actually want to know my line of thinking. Anyways, I'll quote spin for the explanation. Basically, more buyers, higher demand, pushes prices higher. Back to earnings. Everyone is...

there's no arb since all options are quoted at a certain price based on supply/demand, which is reflected in the IV (market is implying vol to be X%). Historically, underlying has had vol Y%, thus, if one uses this to forecast a vol, theoretically the option price is worth $z before an...

i thought the theoretical price was based on HV? and market prices were different (obviously) and from those you derive IV.

and that's based on HV right?

Hello, So I'm paper trading a volatility trade here on LFT. IV has been pretty low, and I projected an increase in IV since this thing has rallied so much in the last little bit. Since nothing lasts forever, and IV rises when things fall, I figured it was a matter of time. So I was a...

i'm actually curious... what defines best to day trade? something that moves a lot? something with high liquidity? were you referring to options? i thought day-trading options was a bad idea...

i have to +1 thinkorswim's thinkdesktop it helped me learn tremendously faster what was going on and how vol, time, interest, underlying affect option price.

see here... You sound 24... I'm a noob, but if I was successful and I read that, I'd think twice about who I was helping be patient, be humble

thanks for clarifying Mark!

so we have a lot in common. I'm a 26 yr old, and have been studying this game for a year. keep posting here and you will learn a lot. I definitely have

In economics and finance, arbitrage is the practice of taking advantage of a price differential between two or more markets: striking a combination of matching deals that capitalize upon the imbalance, the profit being the difference between the market prices. Source...