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So, discretionary analysis? I always figured you as a more "mechanical" trader valuing trades with complex spreadsheets etc...maybe a combination. I'm just trying to understand how exactly you come up with these spesific trades, I assume you monitor several possible ones in Excel and then pick...

:D How do you come up with all these trades? For instance, how do you see a vol edge in this spesific trade over others like it? Why 1345 and not 1335 for instance.....I assume you're not exactly using a calculator to single out one trade out of hundreds of possible ones as having an edge..

Just a question, why are you going in the 2nd to 3rd month to trade long straddles? Remember that less time decay means less gamma, in other words there is no advantage there over the short term straddles. Also why would you discard a credit less than 15 cents? That depends entirely on...

If you were as smart as you claim, learning options should take minimal time. Derivatives like options also offer 1000x more flexibility than stocks and forex. There you either go long and short, that's it. With options you can trade delta, vega (vola), gamma, theta (time), +higher order greeks...

Thanks, when you say "not a data base", do you mean the data is fed into proprietary software and thus cannot be extracted?

Is there any data service that offers historical greeks?

LOL yes, because we all know those "trade tracking" sites are sooo realistic. Found a system that had 1200% in 100 days. Yeah right. Bottom line, stay the F away from these sites as well.

Are binary options a scam? No. Just like forex isn't a scam. It's the brokers that's the problem. Stay far away from unregulated offshore brokers.

To figure out the change in delta per $1 move in underlying, look at the gamma. To figure out how much the bid-ask will move per $1 move in underlying, look at the delta.

2 standard deviations is simply standard deviation * 2.

Since the market is only open 6.5 hours a day, will MMs discount nearly 24 hr worth of theta in 6.5 hours? (Minus some gap risk/overnight risk premium I would assume). I hear people say this all the time... However I ran the following experiment on Google Jun15'12 570C. The currently...

There's way to little information in your post to critisize or reflect over anything really.

Falcon, you probably stumbled upon a research paper. I meant books written by Hull, spesifically http://www.amazon.com/Options-Futures-Other-Derivatives-Edition/dp/0131499084 This book doesn't require any knowledge whatsoever about derivatives before you start reading it. You will understand...

I thought market making was exclusive institutional activity, but this RMMing sounds interesting.., I've always been interested in market making but never quite understood it. If anyone has some resources on how MMs operate that would be fantastic

Most of the weekend theta gets discounted on Thursday and Friday. There is some discounting over the weekend, but that's the price of gap risks etc that market makers price in.

Falcon, I suggest you get a hold of Hull and Taleb. Reading those books will save you years of years of experimenting and they would answer 99% of the questions you ask in the thread

Simple statistics says he's a scam artist. How many legit newsletters are there out there? 1 in 50? 1 in 100? Since there are so many of these newsletters I figure it has to be a pretty profitable business. I've actually considered starting one myself, just for the hell of it. All you need is...

Yes, but then you get less exposure to gamma and thus underlying movement, which I assume is what you're trying to profit of.

The B&S formula assumes normal distribution, frictionless markets, and other things that don't transfer to real life markets. This is called model risk. It also, to some extent, assumes rational and efficient markets. Bottom line is, if markets worked according to BS, LTCM would still be in...

IBs software is one of the best around if you use an API, Excel for instance.