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I dont think Lightspeed has a fee structure that fits proptrading, I think they're only targeting retail traders (relatively high fee/trade). Too bad, since it is the best platform out there IMHO.

Unless you plan on running several slow applications (java) at the same time, any modern pc with 4 gb ram and some modern multicore cpu should do. Since you're planning to use only 2 monitors I assume you wont be running much more than some trading platform and maybe some charts. In that case...

Free money ;) People read some books on option pricing and think they can make free money arbitraging :D They don't realize that the hedgefunds have systems that exec ANY arb opp within MICRO SECONDS even before their broker has sent the quote out to those newbies.

And then there would be an arb possibility and anyone would take it and the parity would be there again. So your answer is wrong. See one (or two) posts above yours for the correct answer.

If you take both dividends and holding interest into account, the put indeed should equal the call (put/call parity). As said, this parity not holding true happens a lot when the stock is not shortable: people short the synthetic which drives up the price of the put (&premium) and drives...

I never understood that either. If you keep a blog, you'll always end up handing out more info than you liked, which can be used to reverse engineer the strategy. Lescor already handed out quite a few hints. If someone is serious about reverse engineering, they might come pretty far with putting...

It's like you buy up some stock with all your buying power and then at the top you say "LOOK MUMMY, I've made a profit !" :D

They said they made most of it on buying their own bonds, so it's mark-to-market. Just wait till they're going to sell, lol.

if that tax passes, it will be the end of the financial industry as we know it.

Hard work ? And then ? You think that there are some 'secret techniques' out there that the pro's dont know ? That if you work hard enough, you'll find out how it works and make the money ? Come on ! Nowadays EVERY single firm knows EVERYTHING about the mathematics of options. If there's...

Haha. Seriously, you think that IF a system works, then somebody would sell it ? :D Come on, use common sense. If a system works, they wont have to sell it on the internet.

And the reason why only pro firms make money: * Unlike you, they have big client orders, they can buy on the bid and sell the ask * If an interesting bid gets placed in the public markets, their automated algo's on their colocated machines have hit it within a few MICRO seconds, even before...

Like said, you can get rich with luck as well. But that most probably wont last, since luck doesnt last forever. But without luck, there's just NO way you can get rich with options on your own, believe me.

If you're that serious about trading options, then here's the best advise anybody can give you: stop trading for yourself, you wont make it on your own ! Join a good firm, like Optiver or a bank with a big option trading floor like Credit Suisse. Of course, you'll need to pass VERY difficult...

Or in other words: option trading used to be a game of knowledge, now it's a game of technology. And unless you have a very, very big IT budget, you won't win that game for sure.

I've been an option Market Maker in Amsterdam for a year (the year before they replaced the floor with computers), I now trade stocks. Anyway, first of all, THE book every market maker has read is this one: http://www.amazon.com/Option-Volatility-Pricing-Strategies-Techniques/dp/155738486X...

Sorry mate, just telling you the way it is, at least WAS, when I was an MM in Amsterdam. Timberhill MM's were called 'robots' and that was because they didnt have to think themselves: HO programmed volatility and when a broker came into the crowd, they'd just buy below and sell above the IV that...

Dumb = you don't need any brains to do the job: HO does the thinking for you. Smart = you need to pass the most difficult screening tests in the industry to get the job and you'll need to use your brains to get your job done. And no, that doesnt necessarily translate directly into profit, I've...

also, there's no such thing as 'the' market maker, just as there's no such thing as 'the' daytrader. MM's would come in all kinds of flavours, ranging from dumb ones (timberhill) to very smart ones (optiver) and their strategies would of course be quite different.

There was an article in the december issue of 'the economist', asking the exact same question. In short, they said that with some advanced techniques, it IS possible to make money this way (with the carry trade), for more info, I refer to that article.