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Any other suggestions for option programs other than optionvue, optionpro and option station? One that will save your positions and plot it against time, underlying, vol change skew change? Possibly scan also? Thanks

Thanks for the response y'all. I guess the best answer is always combination of both. Unfortunately in the real world it is sometimes impossible to do both.Case of diminishing returns. There is a question of finite capital-option spreads eat up $, there is an issue with finite time. As an option...

HD and y'all. Here is a question I've been mulling over and need some insights. Take trader A well versed and experienced in options, probably know 90% -95% of what gurus (Cottle,Natenburg,et al) knows as far as theory/rudiments of options. Swing trading going after 2-5$ moves in stocks1-3...

Stay away from them! Use the $ to start a small account and trade 1 lots, log your trades study them read book sby Cottle, natenburg and Mcmillan.

1:3 ratio on a $5 seems a little risky, check out IV also to see if there is some fat on the options you are writing, might want to buy some insurance on upside, turn it into a fly since Jan options is a long time.

Good basic book, typical graph of diff strategies,etc. As you get more familiar with option rudiments, get other written by Cottle, and Natenburg

This is getting way too complicated. Remember the original purpose- to capitalize on a percieved downmove. With 2-4 days to go, if stock is hovering where it would take a 3 sigma event to either 20 or 10, you'd just buy the equal amt of stock you'd get exercised on the short 10 call or better...

you might want to do it backwards wherein you are buying options on the stocks and buying/selling the indexes outright as a hedge. Indexes by their nature are less prone to gaps not like indiv stocks so it makes sense to use the options on the stock side.

Nitro, I agree with HD on this one. Several other things to consider. Being that the vol is in the low percentile, maybe put on away calendar spreads on the strike you think it might leak down to. Vega plus, little time decay since you are buying cal spread cheap, if stock goes down hard or...

Isn't the beta a measure of how a stock correlates with mkt? So a beta of 1 correlates with mkt while a beta of 2-twice as much. If I got this right, you should be looking at a beta of 0 which neither pos or neg correlates. am I correct?

Steve, you listed some equity and index options that are not available to US such as UK/Germany but not Japan and Belguim. does that mean that US trader can trade these options? Thanks

If you are going to go as far as posting last month's 15K plus this month, why not give us the rolling 12 month which featured band breakers like FNM/FRE, HD/LOW. After all, ET traders wouldn't want to be "Fooled by randomness by Taleb". If you can show a more robust sample set, I've no...

I think there is PDT rule in options. I spoke with at least 3 brokers and all of them echoed the same thing -that options are subject to PDT. Eg. Buy x contracts of IBM Jan 80 call incurring a $3000 debit with your account @ $18,000. You can do this round trip 6 times per day since 3K...

Dependingon the IV's of options involved, there are probably better ways of capitalizing on a mkt call of a slow grind down much like the mkt call involved in a covered call which is a grind up. For instance, you could buy OTM calendars on the lower strikes, maybe an asymetric fly where you buy...

I don't think pair trading neccesarily involves playing mean reversion, could be a trend play where one trades breakouts from "bands" since a lot of people are trapped.

hi sslavin. Could you please elaborate on what you mean by unreal trending lately. I interpret it as "pair trading is harder these days since the trends don't revert to mean " and since pair traders generally fade the trends, the "unreal trending " would tend to hurt the strategy. Thanks.

what the experts say. The mkt can stay irrational longer than you can stay solvent.

I don't think we should be picking on IB. IB's SRO is the NYSe which has chosed to interpret the PDT a certain way probably more restrictive than other SRO's. Maybe other brokers which are not NYSe members would have different interp of the PDT law.

For that purpose check out--> optionstar.com , optionstation , larry mcmillan's site, ivolatility.com and optionclub.com Good luck !

Here is how linnsoft.com explains volatility . Historical Volatility reflects how far an instruments price has deviated from it's average price (mean) in the past. On a yearly basis, this number represents the one standard deviation % price change expected in the year ahead. In other words...