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Enlightening post. OMMMMMM......... I can honestly say I have never looked at options the way you do.. When you are forced to liquidate all your assets give me call... LOVE to pick your brain regarding selling gamma with 4-1 Edge and taking delivery if 4 edges weren't enough

The big difference is when I was younger and dumber,I was lucky enough to work at IB's.. He's young and dumb and on his own.. That is a dangerous combo

Ay chihuahua!!!

So when you price an option and come up with fair value,are you saying the seller has "Edge" because they are collecting theta?? No need for assessment/forecast vol??

It sounds like you are confusing edge with the chance of being profitable

Did you come up with that on your own?? Dont lose your day job :)

Wait, so you are saying the trader didn't make 1 bil selling cheap vol?

Over what time frame..

Other than IV typically priced above HV,not sure I see the edge,and if the edge exists it's really in one's ability to delta hedge better than most

If you are serious,take a look at Orats. ImHO,they have the best backtester on the market... There is NO inherent edge to selling options over buying them.

And quite possibly one letter

Read a decent book on options that's digestable,and look at a program like OptionStrat.I use Orats,but it's above your pay grade right now.. Optionstrat is great for beginners.. I wouldn't waste your time with OI and volume.Understand the option greeks , Vol and take it from there..

Yes,and depending whatctype of margin/asset,the difference can be enormous

Of course the margin requirement is significantly less on a condor/fly vs a straddle/strangle

You recall correctly :)

LOL!!!!!!

If you are referring to my passage,I referred to Technical not Technology..I have never looked at Can-Slim related software,only backtested the related financial metrics..

Read Momentum Masters and you will get a decent feel for Minervini,Ryan.Ritchie and Zangers approach. James O Shaughnessy concluded that the best growth metric was 6 month relative strength,not Sales or EPS growth. And FWIW,his research favored metrics like P/S and EV/Ebitda. I would take a...

I dont think,I know Do you understand synthetics.i.e put and call???

You realize that by exercising, by and large you are giving away a free option with no compensation..