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The catch is that they get the order flow for their market making business.

I believe it's called a Wrangle.

Realized and historical are the same thing, just different terms. The term statistical volatility is also used. Implied volatility is the volatility that is implied in the market option prices. That is, you take an option pricing model, such as Black Scholes, and then stick in the current...

1. Not sure what you mean whether S&P 500 is adjusted for dividends? You are correct though, when using an option pricing model you generally use a continous dividend yield. 2. Ok, it is more clear now, but still, why do you need a single implied volatility number? If you are delta hedging...

1. I presume you are asking whether options are adjusted for regular dividends. No, they are not, however dividends are priced into the options so I'm not sure what your dilemma is. 2. Implied volatility is by definition the volatlity that is implied in the current market option prices, so...

When dealing with SPX and others, CBOE is your only option.

No, your option is not worthless. They always list new standard options when a split/reverse split or some other corp. event takes place. The old ones just get adjusted and are no longer standard, but they still trade.

Even though they have 3 legs, the number of contracts is the same - 4 contracts.

I have to agree with spindr0. Nerves of steel means that you remain calm and concetrated, when you are in a position no matter what happens, as that's the only way you will be able to execute your plan.

So true. :)

Use multiple brokers.

Who wipes? (King Julian, Madagascar)

No worries. It's the way the dividend capture works, when you want to exercise a call to collect the dividend.

I mean, the cost of carry on the stock. If you are long a call and exercise it then you are now long stock, which means you either pay interest on margin or you forgo interest on the cash that you now have tied up in the stock. Plus you need to buy the corresponding put to have an equivalent...

It's not jsut the premium. When you are long ITM calls then you have to consider YOUR cost of carry and the decide whether to exercise or not.

MSFT went ex-div today. When you are short ITM calls you should always be mindful of the dividends.

Does it really matter? If you are shooting for 20-40%, isn't that a wide enough range to accomodate commissions!?

NO!

They were OTM credit spreads. Not sure what you are asking about in the second question.

I disagree. You cannot generalize this statement for verticals. For example, I closed out Aug put verticals with two weeks to expiration, booking 90% of the max profit.