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LOL new season starts soon...

There is some skew effect, and there is certainly some carry, but the largest effect in slightly different pricing for puts and calls could be the dividend.

I think a more appropriate comparison would be to the home builders not internet stock. The home builders were trading at a PE of 6, yet still fell 80%. You may have a months worth of due diligence in supporting your bull position on POT but remember: The market can still irrational longer...

I don't wanna over explain away the cartoon, but Reagan inherited a rough mess by Carter, Clinton didn't believe in a balanced budget until Newt forced him to, with the large republican congress elected in '94. Bush II decided to spend so much on security, rightly or wrongly. I agree with...

I think it's because they are measured at different times. The Friday close was 4:00 for the SPX, and 4:15 for the SPY? Therefore you will have 2 different "up" numbers. Same thing with the close today - I think it went up slightly between 4 and 4:15.

Not all of us buy into the religion of TA

Oh look, the Dow's green. IMO, a pullback is likely, but this is not an ideal massive short opportunity. I am at an overall delta neutral short straddle.

The prez doesn't have the authority to spend a dime. Congress basically controls the $. It's a spurious correlation.

Great story, thanks for posting

Excellent point. They think they have an edge then develop the mental edge to stick through it thick and thin, then before you know it, the account's blown. And the market infrastructure thanks you for your contribution. So for my own benefit: GET AN EDGE! YOU NEED ONE! STICK WITH IT!

You CAN get a coin to land heads 12 times in a row - just start with a few hundred coins flip them all at once, remove the ones that landed tails, flip again, remove the tails, until you are down to one. I use that metaphor to explain the world's largest skimming operation, err, I mean the...

Risking a max of $1000 would signal a simple call purchase IMO. You could buy DITM calls for a low risk-return or OTM calls for high RR. Or you could buy 100's and sell 110's for a 1k debit.

you might want to check out www.optionsphysics.com it's free and there's quite a few useful videos there also check the book reviews here on ET

The stock price is currently a call option with no expiry.

Many types of statistical analyses would reveal a high reward for buying when there is blood in the streets. I've read quite a few, but can't point to any at this moment.

Excellent post.

I don't think so. There is no inherent advantage to selling over buying so I wouldn't think they'd care.

It's clear I lack the language skills to describe the trading strategy. My ignorance is only surpassed by my arrogance. I won't post anything more about it until I can adequately describe it. IMO any options play- long, short, spreads, diagonals, etc are just different points points on...

I doubt the vix will explode. IMO, the vix is actually higher than the reading indicates as there is enormous sector volatility within the group.

Hi yucca, I have read a lot of your journal. Have you considered what would happen to your portfolio with a market meltdown? Perhaps buying some short-term cheap OTM puts on the general market (say the SPY) might lessen a little stress of those 15% swings.