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I wanted to address this point separately. Of all the forums on this board, I find the option discussions most filled with disagreeable comments. I may know a lot, but I certainly don't know everything (LOL no matter how sure I may sound at times.). I can learn from almost everyone. IMO there...

SLE: You are right. I used listed when I shouldn't have. I don't trade such animals, I trade options and am always suspicious of their pricing as well. I treat the options market like I knew for certain everyone around the poker table is double-dealing and taking a cut when I look away or go to...

Discussions with three former market makers (different places and different times) and one trading VP - warrant specialist. I doubt that they will sign an affidavit, but it's not like a big secret or something. So far the computer replacements aren't talking - more liquor needed I guess.

"Very well - if IV is the measure of percieved risk, what is the generic measure of risk?" Sorry, I am not sure I understand what you are asking. Risk is not an objective thing. Risk is trader specific isn't it? Is this a philosophy question?

"So what? when I have to make a price on a quarter-yard of single stock collar, I don't go into philosophy, but rather look at it's realized volatility etc etc. In Black-Sholes world the stock is just an underlying asset, an abstraction in a risk-neutral world. It could be any other underlying...

"Sure, give me an example of a listed derivative that is "marked to fantasy"? Also, please tell me why aren't you arbing that mark with all of your tragic net worth?" SLE - as my example I present the london whale derivatives. See...

Here are some related questions for you. Can any entity see the release of market moving data or news before the rest of the market? How would we know this? Does someone sell this information to others for big money? Have firms been fined for this by regulators? Has everyone been caught yet...

Stop running CERTAINLY (AKA not a myth) occurs but only when someone wants to position using them. They don't run stops to take 20 cents from the little guy's account. Certain market conditions must exist to make it profitable. Most traders would do best not worry about it. The sharper ones...

To paraphrase Pogo .... it's not really so new and not really so clear! Does anyone else find it just a tad curious that EBT fails after market hours on the one big weekend before US default? After all nobody is working by decree, supposedly workers have been told to make sure the shutdown...

How about using mark-to-fantasy like some of the listed derivatives today? A stock's price can also be looked at as a kind of implied volatility limit as theta approaches zero. I like to think of IV as a measure of the market's perceived risk at any given point.

I have heard rumors that market maker options sellers tend to last about 7 years or so but I have found nothing firm about where that "nugget" comes from. Why do sellers tend to blow up? (Improper position sizing? Gamma risk? Improper hedging? Ego gets larger than their account? )

That is perfectly said. Caring is simply the mind popping in again and stepping out of flow. a quote from http://www.theguardian.com/lifeandstyle/2013/aug/10/stop-minding-psychology-oliver-burkeman "Part-way through this particular talk," writes Jim Dreaver, who was present...

Great comment and insight No Doji. In time, I believe that many good traders eventually become intuitive (AKA unconscious competence). Plans can be specific or general - enter when this bar appears (specific) or trade with the trend of the sector ( principle). Perhaps in time, you will revisit...

It is for use against political enemies like it always has been. The security they talk about is of the power base, ordinary folks. The same reasoning is why government overuses secrecy in the first place. The truth can topple governments.

Their is an oversupply of lazy asses and a great shortage of hard effective workers in many many fields. Until that changes, one can always make a fortune with relative "ease".

Did you consider yourself to be lucky or skillful while you were making money using this method in the past? How about now? There has been much discussion on whether trading is luck or skill in past threads. IMO, successful traders will tend to say it is mostly skill (or it's cousin the...

While I can't tell you what I have found about posting prices in my "real time" tool since it may be different where you are and it can lead to a definite information edge. I have noticed one particular "correction" that leads to important tradeable information on a short term basis. One should...

I have written many times against the evils of HFT trading and repeatedly said something like what happens to one, happens to us all. This is an interesting article for me. http://www.zerohedge.com/news/2013-09-13/what-has-your-equity-hedge-fund-manager-done-you-lately I think that the...

It's a quantum mechanical thing - the measurement result depends on the observer. Just like trading. Actually this kind of thing happens frequently during the year depending on server/program time differences and locations. I have even seen it corrected the next day. I have bought things and...

SLE - some posts in this thread appear to support the hypothesis. Nitro - Correlation doesn't imply causation. There could be other factors like the quality of food or quality of friends for example. Interestingly enough, IMO, the reverse statement is also true.