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You want to decide what you want to be and what style of trading appeals to you. The financial/trading world is vast and diverse - you can be an HFT trader which mostly involves developing software, you can be an options trader (buy-side or sell-side, which is are also very different roles), you...

I am going to repeat myself yet another time. There is way more to the trading world beyond equities and futures. There is a gigantic world of credit/mortgages/govies that is mostly traded by appointment. There is a huge world of OTC derivatives that mostly trade by appointment, equity options...

Sorry, what exactly is "dying"? Card is nothing more then a delivery system, it's the credit aspect that matters. So, instead of credit "cards", it will be credit "accounts" or whatever - the model is still the same...

(a) Options are priced off the forward price, not spot, so both dividend and borrow rates are accounted for in the option price. It is a common mistake to price an option using the spot price and an average dividend yield. (b) There is nothing mysterious about handling the dividends. If you...

Let me quote Terry Pratchet: “If you trust in yourself. . .and believe in your dreams. . .and follow your star. . . you'll still get beaten by people who spent their time working hard and learning things and weren't so lazy.” So, first of all, if you can generate good return on capital...

For someone who supposedly came up with a super-safe zero-volatility strategy, you know surprisingly little about how to measure risk. What I am trying to do is to relate the tails of the distribution (draw-down) to the daily level of noise. Are you measuring your Sharpe ratio based on daily...

Of course I am contradicting you. Probability of OP getting some un-X calls is about 1:10, like everyone else. If you are a long a 100k, chances are 8-10k are not gonna get X-ed, if you do it every expiration. There is no real difference if you sell a large block or bleed them out 1 lot at a...

How many standard deviations is your worst annual DD? ps. Good luck with investors. I don't mean to sound negative but anyone who would give money to a single-strategy risk-premium seller after just 3 quarters on a year like this one has to be an idiot. The only dumber people where guys...

Actually, it's a bona fide strategy utilized by large prop groups. There are a few variations, but the idea overall is to be short of whole bunch of deep ITM calls on the night prior to ex-div date and holding full delta against them in one or another form. On large ETFs, a fair number of people...

Nope. Number 185 in the ranking. Infant mortality is not that high either PS. The "free city" project will fail, however.

A good way to think of it is that all moves are relative to the level of the implied volatility. So, if the annualized implied volatility is 16%, you only need 1% daily move to break even, while if it's 48% you need it to move 3% a day.

I don't think you and the OP are talking about the same thing. His question is "how can I trade options in such way so I would not to lose convexity as the stock is moving away from my strike?". His initial (naive) idea was to roll a straddle as the ATM changes - while it might not be correct...

Well, think about it for a second. If you trade the straddle later, you are going to be trading it at a different implied volatility. Instead, you could come up with a structure that will retain sensitivity to volatility across a wide range of strikes. Coincidentally, a combination of a straddle...

Calculating your deltas with the functions included in either is a sure way to get arbed.

My former junior has recently suggested that I turn my "trading notes" into a book. Said that "You are obsene enough to make it an easy read and know enough to get people to learn".

To achieve the same return, you need to sell a much smaller amount of naked puts. So your proportionate losses would be much smaller.

Actually... (a) without considering any particular stock, in terms of sheer Sharpe and draw-downs in Sd-terms, I am pretty sure naked puts would prove to be a better strategy (in terms of risk/reward). (b) a put spread is more of a binary bet while a naked put is a bit more of a...

I was bored waiting for a simulation to run and stumbled into this thread. You can check all of my prior posts and see that I have butted heads with both Mav and Don a few times, so this will be a bit out of character. I will also note that I have no personal experience with the prop firm...

Yes, that bit has been called "statistical arbitrage" by some...

So it sounds to me that in the end we both do the same thing (careful, intelligent process before initiating a trade), me using "whatever" models and you using fundamentals and technical analysis.