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You are essentially recommending to him to be a net buyer of premium. The price he will pay is that his prob of winning will be lower. If he climbs the ladder as I told him (with the stock facing his part organs), he will pay NO time premium, only the instrinsic value (distance from his feet...

I read about an analogy in a blog that may be of help. Imagine climbing a ladder. The steps are: 1. Find an up ladder (up could be turned to down). 2. Put your feet and your hands on certain steps (steps are strikes). 3. The stock is between your hands and feet (facing your... you know what I...

Precisely correct! In addition in a recession, some corporations can be bankrupt. A lender is always in a better position than an equity holder in a bankruptcy. So either bonds have to go up, and equities have to go down before this bear market ends.

as someone else said it is interesting and you should be thanked. I agree. :p

Atticus point (as I understand it) is that the money is made not because they mis-priced stuff, but precisely because they price them right. So, they price them right, but one can still "mis-use" them in the sense of using them not as originally intended when these components were priced. So...

Paper trading or real trading? :D

Whatelse are you keeping from us IV_trader? Why you don't explain to the folks here in detail what you believe was leacked, otherwise you may risk to be seen as someone who takes and does not give back enough.:D

Well said. Better for him to confess now. :D

Anyone who would have followed your advice (after your post) would have shorted in the area of $64.20 for IWM. In around 2 to 2 minutes around 4PM the market is back to $64.60 area. Those people have losses now. The reward does not justify the risk on the short side. The market can go down of...

bought back a quarter of position at $64.49

Current open position (which is half of what I played today) has $0.05 profit. Playing with the other half allowed me to get so far: $0.83 in profits (on half the position). As long as IWM does not go below below 63.87 I am profitable. But stops are well higher than that.

Thanks for advice. I am aware. I am profitable, and will be profitable no matter what. Check my trades (they are in real-time)and match them with the tape. Indeed do not catch the knife unless you can take cut, the knife is close to bottom, and/or you are skilled in playing with knives.

sold another quarter at 64.80 for $0.25 profit. Remaining position has now a $0.10 unrealized profit. I will sum the other profits later. This is definitely a profitable day.

Sold 1/4 of position at 64.67 for $0.20 profit on this quarter.

Bought back the other quarter at 64.47. Cost of buying back of half position is at 64.51. Stops moved a bit down, to overall profit on IWM trading for today.

bought back a quarter of position at 64.55. Moved stops up.

IWM: Sold half of position at 64.75 for $0.15 profit. Lowered stop on remaining half. I might buy if there is a retest of low at around 64.52. Day will be profitable on IWM no matter what.

just bought back the half I sold earlier for $0.48 profit. New buying point is 74.60. Stops moved up for a bit better than breakeven.

how low will the banks go= Zero Back Value: it is kicking in.It is less than Zero!

I think that one should never vote their opinion in the market. Just follow the market, and be on the look out when she flash to you that she wants to reverse. I think Madame market is signaling to us that she might want to go higher. We buy, place out stops to forgive her in case she mis-speaks...