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Well, of course selling options is a viable strategy. There wouldn't be a market in any instrument if there werent both buyers and sellers at any given price. It's ridiculous to attempt to convince everyone they should only be long vol. The key for vol sellers is to avoid over-estimating...

He's not the only one making that argument. That argument is, in fact, the core of how the Black-Scholes formula is derived/proven. The number of expected whipsaws/hedging costs is what the BS formula is calculating for given strike, expiration, and volatility.

Oh, and as long as we're sharing "when I was in college" stories... I borrowed $20k from my parents, and promptly lost $16k in about 2 months. Horrifying experience!

If you're an applied math major, I'd suggest your focus should be on learning about as many markets/instruments as you can... the idea is to build experience, so that *eventually* (a decade from now?) you'll be able to use your analytical background as your edge. I don't think the...

If they don't record losses at all, it just means they're holding on during HUGE draw-downs. See my comment above, re: huge potential loss waiting in the wings.

I agree with Rodney King. Seems to me, especially with the options arena, you have two choices: - lose regularly... if you're still able to come out net positive, then you just might have a real edge. - lose rarely... you'll never know if you have a real edge, and you're setting yourself...

The unmodified S-class already runs you about $160k. Brabus specializes in custom, and very expensive, tuning... and $800k sounds believable to me. The iPad stuff is just for fun. Their real value-add is under the hood.

Very unfair statement. I've tried several IBs, before and during my use of Vision (RCG, MF, IB, Advantage... As well as discussions with NewEdge, Crossland, Credit Suisse, ADM).... Pricewise, they aren't the best, but they remain my FCM of choice. I've done almost 200,000 RTs with them...

Vision has poor international coverage. They aren't clearing members of most (any?) non-US exchanges. Any overseas trades have to be cleared via give-up, primarily at newedge.

This is exactly why it's easier to think of this as two puts at $46 and $54, because it's easier to visualize. What's the best possible outcome? It isn't if the stock oscillating between $46 and $54... it's if the stock goes to $54 or higher. So what if the call gets exercised? That's...

We don't "have" to do anything. We could even make up a name... let's call it the Iron Walrus. Doesn't change anything. The point of some of the posters here... and I would agree on this... is that the P&L and potential risks for a portfolio of "two naked puts" is immediately easier to...

If everyone at the firm was doing it, I'd be using that to my advantage as I speak to the prosecutors in the case. I have zero sympathy for this guy. It should have been immediately obvious to everyone involved that this was illegal activity. The idea of a small financial penalty is...

I'm a little confused, and am wondering if IB isn't skirting the regulatory rules. SEC does offer no-action relief to a number of overseas equity options, as listed here: http://www.sec.gov/divisions/marketreg/mr-noaction.shtml Nikkei options, as well as a number of options on other...

My understanding was that didn't make any difference. The Euro Stoxx 50 option on Eurex is also cash-settled. I see a previous discussion here: http://www.elitetrader.com/vb/showthread.php?threadid=99451

I'm a little confused... I was working under the impression that foreign equity options wouldn't be available for US traders. And that this was why IB didn't list the Euro Stoxx 50 options, while it did list the futures. But why are Nikkei 225 options available? Anyone out there have a...

I believe the NFA is currently soliciting opinions on the possible elimination of the 4.7 QEP exemptions... I've heard from several sources that it's only a question of time until they're gone. So, I wouldn't put that much time into thinking about it!

Platinum is trading at $1 during the day. Overnight when markets aren't being quoted, his personal account buys from the Citi account at $0.98. Rinse and repeat.

The biggest difference? The monsters in your MMORPG don't really care whether they win or not. Their designers want you find it challenging, but thy ultimatly want you to have the satisfaction of winning. In the financial markets, every dollar you make is literally coming from someone...

I think the insurance company analogy is exactly right. Anyone making the blanket statement that all insurance companies are "picking up pennies in front of a bulldozer" and therefore doomed to blow-up is... well obviously, very mistaken. The real key, in my opinion, is understanding the...

Like I said, I try not to get opinionated on here... I try to skip the arguments and ego-fights. But there are clearly a lot of people trying to make serious career/life decisions on the basis of what they read on this forum. And unfortunately, finding good legal advice can be expensive...