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Take a look at this: http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=6&ved=0CGIQFjAF&url=http%3A%2F%2Fwww.math.ku.dk%2F~rolf%2FWilmott_WhichFreeLunch.pdf&ei=L7DtT7mZLbPY4QTrg_H9DQ&usg=AFQjCNHqAe2S-SlSVVroJCypPtZdNPz1ww&sig2=sicj6SuO7s61pI0tRFf5wg On page 9 in the PDF, the pros...

Again, knowing your risk and tolerance is not the same as forecasting where what you are exposed to will move. You're still confusing the terms. And please explain how my points are "smoke", preferrably point by point instead of one broad, general statement. Because so far, the only smoke I...

The greeks tell you what risks you are exposed to and how much. A forecast on the other hand, is a prediction of where what you are exposed to will move (i.e will the UL move up or down, IV up or down and so on). Gamma corrects for the convexity of value, it tells your exposure to changing...

Because forecasting is not the same as understanding risk. You're still confusing the terms.

You've misunderstood completely. The greeks aren't meant as a forecasting tool. They're meant as a tool to understand what risks your portfolio is subject to. If you want forecasting, go buy a crystal ball.

Did you get that book yet?

Charm, Vanna, Gamma measure Delta decay, delta to volatility and delta to underlying respectively. If IV went down you as you say, Vanna would explain the change in delta. if UL moved, gamma would explain it. If time went forward, delta decay would. P&L greeks is measured as dC = (delta *...

The guy claims to run a hedgefund, yet doesnt list AUM or any info. At least I cant see it. Also YTD return of -7%? not very impressive.

Just a regular guy trying to help out :)

Impled Volatility is not the same as the VIX. Implied Volatility is unique for each and every option in the market depending on its underlying supply/demand. The VIX on the other hand, is a general measure of volatility accross the board.

Delta is affected by IV because, if IV goes up, traders feel the market will be more volatile. A more volatile market means a higher probability of your strike being touched, thus delta of it goes up. This is all in the Black-scholes formula. Delta and all the other greeks are dependand on...

Livevol.com has IV-data You can also derive IV from historical option prices, which I would assume are more widely available than IV data.

Okay thanks I'll look into the software. In the meantime perhaps someone else has suggestions?

Thats how it goes... anyways it's 1AM here now, time to hit the hay... Again atticus your help is much appreciated, hope you stick around these forums for the time being, despite what certain idiots want...referring to that argument on page 9-10 somethig....Personally I've only been trading...

lol, I read that as either A there was a huge demand for labor or B the rest were busy cashing welfare checks. after all we do have a very liberal welfare system so I'm used to people critisising it :p

Why would an average individual hang out on elitetrader.com? You cant put the elite in elitetrader if you're average.

You know it, $530 billion in the pension fund so far....10% growth yearly on capital thanks to great managers. 4% of this goes to subsidizing the budget yearly, keeping a healthy budget surpluss. couldn't be happier with where i was born tbh.

Thanks, yeah I see what you're saying. And "even" a nor huh.... barely even scandinavian in the mind of a swede :p

That makes sense. 1345 based on WVAP, expiries based on rollover edge and long vol based on downside directional bias or flat, so there is directional bias in this spesific trade, if I read right? Anyways, makes sense.

Nice. I understand how you quote possible trades now, I assume data visualization is important to you...only question is what do you look for in the quotes/data, but I guess that's the "secret sauce"