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You never even had the knowledge so nothing was erased.

I asked you 3 pages ago to support your claim with facts, yet all you do is keep saying that it is wrong. So put up or shut up, mate!

Sorry mate, I can't edit the post anymore, but I will keep it in mind next time I post a pic.

For me, it depends on the situation. Besides, why does is always has to be buyer vs seller!? It's not like you pick a petrol or a diesel car and then have to stick with either petrol or diesel fuel without the possibility of changing.

I said fairly constant not precisely constant. Here's a snapshot of SPY options and deltas. Let's look at 110 calls/puts, which are the closest to ATM. If you ask me, it's fairly or roughly constant. Uploaded with ImageShack.us

OK, show me it's not correct.

Are you sure you are not looking at an option that has only been listed for a month? Otherwise thinkorswim has them.

Delta for ITM options approaches 1 (-1 for puts) as options approach expiration. Delta for OTM options approaches 0 as options approach expiration. Delta for ATM options stays fairly constant. Looking at BP options chains it all seems to be inline with what I described above. To delta...

Why does it specifically have to be a short call?

Yes! Since there is no more time left at expiration there is no time value. Time value can be considered to be speculative value, or in other words, the chance that the stock would move in favor of the option holder.

As mentioned by others, everybody knows (well, at least we "option specialists" do :D ) that options are generally fairly priced and thus have negative expectancy due to commissions and slippage. Any strategy you evaluate using your approach is gonna yield negative expectancy. Also, don't...

There is no way of knowing how the participants are positioned. just because puts have greater open interest than calls doesn't mean anything because you don't know what other positions people may have. For example, if someone comes in and buys puts on BP. Does that necessarily mean that the...

I don't think there is a precise way of calculating what would happen to back month volatilities if the front month rises by x%. Just google "volatility surface modelling".

It's interesting that you ask how they model the long dated volatility, but not the front month. Why? What, in your mind, makes front month volatility different? In simple terms, they model the volatility surface and then calibrate it based on the market prices.

For options on SPY (ETF) the last trading day is Friday, so you can trade them till Friday's close. See here for the OCC memo. By the way, it took me 5 seconds to find this memo using Google.

There is no direct relationship between the different expirations so there is no formula. Term structure changes just like the skew does and it depends on the demand/supply in various expirations and strikes.

Quote of the day! No, make it quote of the year! :D

Indeed. She would blend in at a bank in Eastern Europe.

Weekend decay is taken out on Friday.

The term "beating the VWAP" refers to executing a large order at a price that is better than VWAP. In other words, you want to have an average buying price that is below the VWAP, and an average selling price above the VWAP.