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1) Read Option 101 books by S. Natenburg, L . McMillan 2)venture into Options 102 by looking up C. Cottle. 3) Get yourself Excel and Peter Hoadleys plugin and create your own scanner/modeler 4) Read Market Wizards by J Schwager specifically John Bender's interview. 5) Stay away from tickers...

runtrader's example is succint yet accurate.. but in that situation you'd have a backtest where stocks bought at the beginning of the backtest would still in your position 10-20 years later. If you say hold on for 10 years, or start the backtest x years ago , then that "P" word comes up again-...

HV is a reflection of a stock's price movement.. so take a stock that is priced at $50 and stock priced at $100 for whatever reason- valuation, float,etc and they both have $3 ATR, first one will have a higher HV than 2nd.. as you can see from this simple example, the HV have nothing to do w...

wait.. they have listed options and they still are not public.? How can that be?

ughh.. be careful... i've not done studies on correlation of IV within sectors but intuitively, a stocks movement hence its HV could "decouple" from others within sector. For instance, 2 stocks in the same sector might have different price action bec 1 stock has a massive float vs the other. In...

Do you have a handle on why it is at 60 in the first place? Did you look at previous years IV and plotted out its seasonaility? Is is a biotech or drug company waiting for a clinical trial result? heading into earnings? You have to have a handle on its unique fundamentals first before.

Count me in...

or you can use technical analysis to screen for chart setups on the stock which you can then translate into an option strategy. That works as well.. if not better.

so, if you can "predict" probability distribution of a stock thru technical analysis, you can then pair off that with an appropriate option spread.

There is a chapter in the"market Wizards" book by Jack Schwager where he interviews John Bender- a money manager with Soros, Quantum,etc. Here is an excerpt of his interview. Jack Schwager: How were you able to make consistent gains trading options? John Bender:To make money in options,you...

My style of trading has changed from trying to make hundreds daytrading to trying to break into managed $$ , where I hope to make 2/20. I have friends who do that (> $100m AUM) and it is a far better life than trying to eke out ticks on a daily basis.. All you need is to make 7-12% with very low...

I never take a concentrated positions on any strike much less make an opinion on where a stock is going . My system is in guessing the terminal distribution of an index. ie put on position that will lose 10 cents from price A-C, make 40 cents from price C-G and lose 10 cents from price G-Z...

There are systems out there that have robust backtesting capabilities- Amibroker, SierraCharts, Tradestation,etc . Most of them have built-in technical analysis functions like RSI, ADX, Bands,etc so you don't have to reinvent the wheel. Some require monthly subscription, some require you to...

tough question.. if you are worried about your position in BAc for example for tomorrow, I dont think there is any move possible wo taking on hidden risks...anyway got to go for the day..

ok.. we agree that gamma is largest at 50 delta and smallest at 100 or 0.. I jut wanted to make sure you knew gamma flips at it goes thru 50 either direction.

just wanna make sure I am understanding you.. If BAC goes from 25 to 22, your 25 line call wings all decrease in price, delta and gamma...if BAC goes from 22 to 25, your 25 wings all increase in price,delta and gamma. when BAc goes from 25 to 28, price , delta go up gamma inverts..

Can't give you advise on BAC ( I trade index and ETF's ) .. I don't quite understand what you mean by vega push. If BAC goes up , then down the net day or so then back up, the vega will hold or even go down (unless there are extraneous factors like an upcoming earnings release). I also don't...

also I think you should be aware that when BAC pops and you make $$ on the calls, you are most likely getting your $$ from the delta change not the vega. In fact you are prob losing out on the vega sinc ein equities, upmoves generally result in IV going down and vice versa on down moves.

I think you are essentially scalping the 24/25 backspread which is fine- selling off contracts on your 25 line on up moves and I presume buying them back on downmoves to re-establish the backspread. or buying DITM call as a hedge (why not just go long stock as a hedge and avoid the bid/ask...

You have a backspread on the 24/25 line (strange ratio of 30:100) hedged w a 28x28 put spread .. Without running it thru my position dissector software, and if you trade this static w/o any adjustment till 1-3 days till expiration you have a huge risk hole around 24.5 till 25.5.. I think?