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I feel like I would be trying to overcome theta and force trades. I am playing around with the opposite - sell ATM straddle on volatile stocks. Then try to convert it to covered call or covered put. Since this is a bull market, I am more comfortable with ending up owning shares, so I...

Stock can gap multiple points overnight or on news - you will get filled at the after-gap price.

Gap?

For some reason it feels like weekends is when major news come out. One reason I can think of is that most retail investors don’t follow markets day to day, but they do over weekend. So you see heavy selling or buying on Mondays which sets the mood for the rest of the week. That’s why I prefer...

I don’t know if this is too simplistic for you guys, but I couldn’t resist due to the title

Thanks for replying! It sounds like they came to the same conclusion - while decay may be there, it's compensated/overshadowed by the added volatility over the weekends. "As it turns out, there is risk that exists over the weekend, because the standard deviation range for weekends (Friday to...

I am experimenting with short straddles on weeklies. My preference, not backed by any data, is to sell them on Wednesdays. I was wandering if I would be better off selling Friday to Friday instead. Found below article, but I don’t know if I trust the research. “Novice options traders are...

Here is how to accomplish same thing as D-Limit, but in a fair way - giving people a choice. (The delay was reduced to 10ms since) https://www.nasdaq.com/docs/ELO%20Infographic%20Update%20January%202018.PDF

For some, level2 IS the strategy. For some, enhancement to existing strategies. For others, useless noise.

Nice! Not many automated journals here. Best of luck!

Lol. I checked out the Russian site where that article was posted. Under the "Brokers" menu it says - "There is nothing much to comment here, my broker is - Interactive Brokers." Some more resources from that site: https://optionsoffice.ru/stat-i/

This answers my question, but seems to contradict @newwurldmn's point. Those Russians, alwas have access to the best stuff :) http://optionsoffice.ru/wp-content/uploads/2016/03/Goldman-Sachs_The-art-of-put-selling.pdf

@Matt_ORATS, is this something you can easily crunch? I doubt people who utilize this strategy use full collateral.

Market Maker’s biggest risk is to trade against informed traders (aka toxic order flow). In contrast, trading against non-informed traders (aka dumb order flow) is license to print money. They are still subject to best execution laws, but they have the technology and the brain power (at high...

I think both parties are bluffing. NYSE moving out while the rest stay would not be smart.

The CBOE PUT index is based on using full collateral. Are there any studies available which use same methodology but with partial collateral - like 90, 80, 70, 50 percent? Just curious on returns and draw downs. BTW, while googling, found this interesting article...

You think GS edge comes from computing power?

@Dazz, I understood your reasoning the first time - all valid. I wanted to hear from @SunTrader

I would like to hear your reasons.

Also, I don’t think he would be able to do it with stock index futures. What DD are you willing to live this on your journey to 1M?