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Yes, the clearing house is the counterparty, but if someone decides to exercise and you're the one assigned then it does affect you.

This is a huge topic (like any other one) so you really need to try to narrow it down a bit so it is easier to start researching it. Are you interested in arbitrage, information that the option market may provide, order flow,...

No, not necessarily, it just needs to be ATM. In this case, I guess the 70/75 strangle would've worked better.

0.3229*sqrt(29/365). Volatility is scaled by the square root of time. So annualized volatility (32.29%) times the square root of days to expiry (Mar contract had 29 days to expiry on Thu last week) divided by 365 days in a year.

Actually in cases like this (FDA decisions and etc) the IV collapses no matter which way the stock moves.

Based on 32.29%, the market expected about 9% move, which is about the same as the actual move, add in the slippage and you have a loss. Also the straddle was bearish since the call was OTM.

As the other person noted, it's jsut closing the existing and opening a new one. You can do it as a single spread order though for a net debit/credit. For example, you have a long call and you want it to roll to the next expiration. Selling a call in the front month and buying a call in the back...

I did.

Not enough choices. How about at least adding "index options" and "all of the above"!? I trade equity, index and futures options.

How did you determine that the system is excellent and very profitable if you don't have good results? Backtesting!? In any case. you have already given yourself the best advice possible: FOLLOW THE RULES!

There are plenty of firms and hedge funds that use quantitative methods to trade. However, I doubt that just understanding econometrics and time series, or Bayesian econometrics is gonna cut it. They are looking for PhDs in maths and physics.

There is no direct correlation between the two, except for the cost of carry (the spread between the interest rates of the respective currencies) imbedded in the currency futures.

By the way, Eurodollar futs are on the Merc not Board of Trade.

Options on futures trade on the same exchange the futures trade, so in case of S&P 500 futures, it is the CME. To answer the question of whether the option price will swing or not I suggest reading a book or two on options.

Just look it up, bring up the chains and see which one is the most liquid.

The most correlated options to ES are the options on ES. Otherwise, SPX, SPY and XSP.

Become a market maker.

Post this in the options forum to get replies! I think ORATS has the data.

g is for gamma, v is for vega.

If you buy an option then no one but you can exercise it (well, the exception is the automatic exercise of ITM options at expiry). No matter how deep ITM it gets, it will still be an option until either you exercise it or it is automatically exercised at expiry. There's no particular beauty...