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We need to separate the instruments here. Options on Futures use SPAN margining, which is risk-based margining and, yes, CME uses complicated formulas. Equity and Index options use rule-based margining. No complicated formulas here.

I used to live in Perth, but moved to Europe a few years ago due to work-related reasons. I second Bolter, livestyle-wise, definitely in the top 2 cities in Australia. Melbourne would be my other choice. Trading community is not big, mining is though.:D

Anyone knows where I can find DV01s (dollar value of a basis point) for various interest rate futures? Thanks!

Margin account won't help you, the rule still applies. Futures trading is an alternative.

Exactly.

You would use Weighted Average Cost of Capital (WACC) to discount future cashflows as well.

I use it for "what if" analysis. Well, I don't use those free calculators mentioned above, but I certainly do use an analysis tool that has a calculator built in. I don't use it to find theoretically underpriced or overpriced options.

A company doesn't have to be valued based on dividends that it pays. You can value it based on free cash flows, as it has been pointed out above. Basically, you estimate future sales, costs and etc to arrive at some cash flows. Then you discount them back to the present and sum up. It does...

How about futures on sex!? With physical delivery, no cash settlement. :D :D :D

"Option Market Making" by Allen J. Baird.

Did it ever occur to you that it is just the size of the bid/ask changing and no actual trading is taking place. I mean, the market is a dynamic thing - someone submits an order and then cancels it or changes it. In order to get proof that you're sitting with your dick in your hand while...

Thank you!:D

Not to be a smarta$$, but you say "skew" is the slope across strikes and "smile" is the difference between ATM and OTM. How's that different from each other!? ATM/OTM is determined by the strikes.

Contact TOS tech support, extremely helpful people! They'll help you work around this issue, if there's a workaround, of course.

What do you think?

US brokers also offer direct market access, but, as far as I'm aware, it is not the same as being a market maker, but that's beside the point, anyway. I don't think we have digressed. Being able to have orders on both sides at the same time is an important consideration when comparing retail...

Haven't read that book, but, if I'm not mistaken, the original Turtle system was something along these lines.

If you say so.....

You can trade a simple trend-following channel breakout system without charts. All you need is a piece of paper to write down the highs and the lows for each day.

Quoting a two-sided market means having a bid and an ask in. I.e. a buy limit and a sell limit in at the same time. That's market maker's privelege!