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I kinda understand the part about the hedge, If you are up some pnl since xyz advanced from 48 to 53 and u won a 50 55 60 fly, you would attempt to "monetize" some pnl gain by selling 1000 shares of xyz., I would probably sell a back month vertical to gain further time decay, albeit less...

kinda embarrased to admit this but what exactly do you mean by gains to neutrality and hedge ratio. Do you mean using current marks and calculating the pnl if xyz setttels at the short strike and comparing this possible pnl vs current open pnl and finding a ratio where if it goes over you just...

Hi Atticus, Could you offer a suggestion on when to exit a fly? If I put on an OTM call fly 50/55/60 on stock trading at 48 and 8 days later, stock goes to 53, would you close it out for profit x vs. holding on to it till expiration hoping for 3x ? Would it be simply a return on investment...

best suggestion for you is to work backwards,- look at platforms that offer api w options-REDI/Sterling,etc and then find out who their clients are. For ex. Sterling has options API, call sterling and ask them what brokers uses Sterling i.e. Echotrade? (at least they used to 4 years ago)

I thought she was ok up until the part in the video when she said she wants to get her debit back wherever she can get it. That is scary! When you sell a teenie that u now have to buy back for $3, and you want to get that $3 back come what may, you either have to sell a way back month which...

Jeff, listen to the tape again but before you do, look up the lectures of sosnoff in tastytrade where they roll up the "unchallenged" part of the condor or strangle to generate credits. With that strategy as a backdrop, listen to her and u can discern that she as she plays defense by call roll...

This is how i interpret her strategy.Tell me if I am way off, eg. XYZ at $100. Sell 10 90/110 strangles, if XYZ goes up to 107, buy back or roll the call side from 110 to 115, this costs her $ so she needs to get that debit back by selling puts to recoup the cost. Since time has passed, there...

Hi A--x gabby here. I think Augen is saying pros are on the opposite side of the public buy-write crowd which would make the pros new short call as they sell to the public who are currently covering their short calls. I don't buy that explanation to explain the downdraft since the pro have...

Atticus. Are u saying the amount of trades emanating from the OI alone is not enough to push goog around ? He did say that since goog gapped up a lot, it crossed multiple strikes which means that all the players who were short all the calls on those strikes have to participate in the...

I dont know if i agree w him about his last piece detailing the goog downdraft where he says stock goes down when the public covers their covered call position then sells their long stock. I don't think that dynamic adequately explains the down draft. Think about it...he says the public buys...

Credit Debit spreads has been discussed extensively . There is very little material difference betwen them much like a fly is a debit spread but an iron fly is a credit spread . Their pnl is pretty close. As far as OTM/ATM/ITM, again the mkt is very efficient. Kinda like saying which auto...

background might get you that edge so you should try the private equity shops which might be found in Greenwich .

I feel your pain as well . It seems that trading options is less trading more of a data mining/programming exercise. Optionvue has some queries last time I trialed them . However, they are expensive and at a certain point u may find the granularity u seek is just beyond their capability to make...

your best bet is get Excel and buy an addin from Hoadley options and make your own simulator, backtesting,even rudimentary scanning. You won't be dependent on anyone and much cheaper too. Steep learning curve but worth it since your system can grow as u grow. Main problem with any software...

Translation...... Fooled by randomness....i.e. luck

Falconview, do yourself a favor and learn options from the ground up. Get books by McMillan,Natenburg then Cottle. Once you read and mastered all of them go to TOS and use OnDemand for weeks trading simple long calls/short call/(and puts) then move to 2 sided spreads, then to 3 then to...

In my testing I've found out that trades w bad alphas get stale really fast while stocks that have good IV's which result in higher aplhas has a little bit more shelf life. Case in point Nov 11 2011 weekly - AAPL and MA had really bad alphas, both of them sat for about 2 hours, huge pnl down...

Riffraff, I think timestops are very critical in this trading scenario. If you think stock is at a critical point and it does not happen in x minutes or hours. Would u agree that u gotta get out instead of waiting for end of day?

I think ur right on that one, once a move happens I guess you can start selling front month verticals and turn it into a wider and wider long strangle so ur booking pnl and owning a strangle which expires in 2-4 hours that are 2 sigmas out. Ex. XYZ at 50, own $50 straddle, XYZ goes to 53, sell...

RiffRaff quick question if u don't mind. Did a TOS simulation on an AMAZON Nov4 2011 215 straddle . IV at 38 w/ AMZN around 215 around 11AM. AMZN hung around 215 for next 1.5 hours and IV got hammered down to 33 and position on a 1 lot straddle went -40 .Is there a way you can play this...