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there is no guarantee you will get filled at midpoint in a hectic market, it might continue beyond your stop and then you are screwed... i think the best solution in your case is simply use a conditional order with ask as reference price. for example, you sell an option for $1.00. the ask of...

well most platforms dont support this kind of stop, so i have an excel sheet which monitors position deltas, and if the price crosses a barrier, like with a regular stop, it submits a mkt order to buy or sell underlyer in a ratio that neutralizes deltas. obviously gamma and vega exposure...

getting stopped out on options isnt the same as on stocks or futures, liquidity might be a pretty serious issue. once i saw on EOE daily options on a sudden drop in AEX, bid-ask going to 0.1 bid 2 ask, that is 1.9 wide... getting stopped then at the ask on 1000s of options would suck, when...

Short 91

Short VXX/short VXX calls/VIX calls are all investments in contango. Richness isn't really a big concern here, unless you want to use delta neutral strats, but then you miss out on contango. I suppose it could count as a secondary profit driver for someone long contango who uses options sale to...

It's like all volatility investments, either a slow bleed or a quick death. Selling them makes profits most of the time but can wipe you out in a 2008-like scenario. That being said it's been my main profit driver for some time now, but I have very spesific plans on what to do if it spikes. Do...

not very much at all

VXX and XIV are not directly inversely correlated, I can't remember why but VXX apparently drops more % than XIV rises on equal rise in VIX. Also VXX calls, which is what I assume you'd buy, are terrible investments. You're probably better off just buying less of XIV to begin with instead of...

Obvious downtrends tend to price into the options.

I suppose you feed Excel with streaming data. Just crunch what's coming in into the BS formula. Here is a sheet w/ greeks + higher order greeks. http://www.elitetrader.com/vb/attachment.php?s=&postid=3452907 Feed incoming data into this. Dissect and rearrange the sheet as needed

A short gamma pos locks in a loss per delta hedge. A long gamma pos locks in a profit per delta hedge.

yes, there was a thread some time back on this video...it was debunked as BS. dont remember details

I'd be interested as well. I reside in Norway, we talked some time back via e-mail... know little to nothing about exotics though, not sure what skill level you'd require from someone... I could set up an account + local machine you could access 24/7...

Yes, if the option is exercised against you, you get 100 shares for one contract. That means you need enough excess liquidity to hold the shares you are assigned, and this number is much higher than what is needed to hold just the option, due to the higher leverage of options.

Hm, what books did you read exactly?

Yes, I am sure the world will blow up like it's done the millions of other times people have predicted so...

Ah, if I had a nickle for every time I discovered a 500% pa. strategy, only to find out later that it won't work as I expected. Newbie mistake, you'll realize this very soon, trust me.

Hope discount my ass. Markets wouldn't be this efficient operating on "hope". If you think the VIX is priced wrongly then go ahead and buy it, see where it lands you. The fiscal cliff is just bullshit, as usual they'll just end up kicking the can down the road. The markets know this and so does...

0.042 times the multiplier (usually 100) gives you the dollar value that theta eats away each day.

The replies are overcomplicating it. The short answer to your question is yes and yes.