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No, it will just expire worthless. However, even if the option is OTM at the close on Friday you can still get assigned on it so if you do have a chance to buy it back for a nickel or even a dime then it would be a prudent thing to do.

A former GS banker!? Wow, what a coincidence!:eek:

As others have mentioned, it doesn't work this way. You can't have your cake and eat it too.

Jail time.:D

Are you talking about the formula I posted?

Why are the results illogical? It exactly demonstrates the power of compounding, well, in this case in reverse. As you lose your absolute bet size decreases since you are always risking 1% of your current capital. In other words, you are losing a progressively lower amount. Thus it takes more...

It's a simple compounding formula: FV=PV*(1+r)^n n is you number of trades. r is your return on each trade, which will be negative since it's a loss (e.g. -0.01 if you are risking 1% per trade) PV is your starting capital and FV is your ending capital, which you can set to a 100 and...

It's a legal thing, or rather it is illegal in the US.

In two words...volatility crush

Painting the tape

Yes.

Each trade has a buyer and a seller otherwise there would be no trade.

Why not consider SPY options? The spreads are as tight as in QQQQ and it is essentially the same underlying as ES.

you decided that you made enough money and it is time to lose some. So you :D :D :D

This is how they make money, so why would they be willing to share it with you?

Just to add, there's no way of telling whether the option is American or European by looking at the chains or at the ticker. The only way to know is to look up contract specifications on the exchange's website.

I'm not sure, you may wanna try the vol diff and searching for vertical spreads, for example. Since the market is closed now the scanner doesn't work so I can't say for sure, but I think it's worth a try.

On the "stkhacker" tab you can scan for "vol diff" or you can specify the front and back vol separately. You can also do the same on "sprdhacker".

What are you talking about? The guy had a LONG put! By the way, I don't know the answer, newguy.

Volatility can be predicted in a sense that it is mean-reverting, however, it's hard to determine when exactly it will revert to the mean. I also have a model, but I'm not selling it to you! :)