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Simulators, aka models, do NOT calculate future IVs, they are simply theoretical price calculators, they take the inputs you give them and give you theoretical option prices based stock price, volatility, time to expiry and etc.

You are missing one important point here. Yes, vega is the sensitivity to changes in implied volatility, but the implied volatility doesn't rise or drop equally across different expiration months. That is, each expiration has it's own implied volatility or rather volatilities, so going into...

I really didn't feel like getting into this zero sum, option selling debate all over again as it has been discussed here on ET numerous times, but what the heck...Taken at face value, there is no edge in selling options vs. buying them. Successful strategies can be built around buying options...

Yes, quarterly options settle into cash. Only the serial options settle into futures cotnracts.

The question is why did you end up with such a concentrated portfolio, why didn't you add new stocks when you sold the old ones? In any case, what you can do is simply buy put options on the stocks you want to protect. The protection will cost you, but assuming you have some reasonable gains...

Oh, yes, you are mixing it up big time! There is no relationship between the size of the vega and the size of the volatility crush. Just because back month options have higher vega doesn't automatically mean that the back month volatility should drop more! Vega is just the option's sensitivity...

You are mixing volatility with vega. Volatility is the one that gets rushed or crushed, vega is just a option's sensitivity to changes in volatility. Higher vega doesn't mean that the volatility should move more.

Bugger off!

Not exactly what you are looking for, but I'm sure it's pretty much the same graph as this one. As you can see the slope really steepens with about 3 weeks to expiry.

ssss, Do you really think you can 100% rely on anything that is said on this forum!? Every country has a different tax code and different rules apply to different things so get a professional tax advice, that's the only way you are gonna get all of your questions answered! A lot has been...

Pattern day trader (PDT) does NOT apply to futures.

Try mentioning that to a bunch of academics and if you're lucky enough, they may let you live after they finish throwing market efficiency studies at you...:D

You should change your handle if you have to ask this question!:D

No, I'm not naive. Once again, your broker, assuming a US one, does NOT report option trades to the US tax authority (the trades are not reported even for the US citizens), so the US tax authority has nothing to forward on to the German tax authority, capish!?

No info is provided to anyone! Neither the US nor the German tax authority have any info regarding your option trades. That's as far as i understand the tax issues, I may be wrong though in case of Germany, but then again, doesn't Germany have a self-assessment tax system, where you report your...

Nope, the option trades are not reported to the IRS (US tax authority) or German tax authority so no tax will be deducted from your US brokerage account automatically.

As a US non-resident alien (i.e. not US citizen, living outside the US), you are not taxed on capital gains from trading in the US, you may be subject to capital gains tax in your home country. In other words, if you make an options trade and make money on it, you won't pay tax on the profit in...

Ok, but it still doesn't make sense. IWM is about 1/10th the size of the RUT so 1 RUT contract is equal to 10 IWM contracts, yet IWM options are about 10 times cheaper than the equivalent RUT, so it all evens out. Could you give an example?

Cash vs. physical is not a big deal if you do not hold to expiration, if do though it becomes a significant issue, not only because of the way the settlement value for index options is calculated, but also because of the resulting position or non-position when trading some strategies, namely...

Depending on whether those 2 options are quarterly or serial. if you got quarterly then you settle into cash and, essentially, it is the same as 1 SPX option. If the 2 options are serial, say Feb as in example above, then you settle into the Mar futures contract and it is not the same as the Feb...