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Pick the high IV underlyings: http://optionstrategist.com/free/analysis/data/index.html

Perzactly! Commissions are part of the cost of doing business. The general idea is to try get the most out of the trade. Buy sheep, sell deer, you animule!! :)

Ya know, at some point you have to get past the negatives... I don't like paying time premium. I don't like being long options. I don't like being short options. Stock costs too much. Unlimited risk. No dividend. Limited profit. IV too high. IV too low... ad nauseum. At some point you...

FWIW, before it split 3:1, I used to gamma scalp EEM via long straddles and trading the stock intraday against it. I liked EEM because it and the China sector were volatile and there were often opening gaps as well as intraday continuations and reversals. Problems occurred with stretches of IV...

There's no add'l gain from investing the bulk of the cash not used for the synthetic in a MM because that is the cost of carry which is imbedded in the option premiums. IOW, the net credit received for doing the -36p/+36c synthetic long (option premium plus MM interest collected for 4+...

I'm the consumate skeptic and I believe that most of these guys on the internet who are trolling for large fee subscription are bogus. But charging a $2,800 fee is no crime nor is it an indictment of his service. And a first time poster generically railing against Bottarelli isn't proof...

Sorry X-man, I got sidetracked by your previous post. I didn't register that you were talking about IV offsets (even tho it was right there in black and white) whereas I am interested in/was thinking iof price movement in conventional pairs trading.

A wide near-costless collar isn't likely to protect very much.

Can you elaborate on this? (the pairs trading with options, not the dispersion theory)

How is he conning people out of their money? What are his misrepresentations? Why is he a phony? What is he doing that resulted in these conclusions?

If you receive 1 pt for a vertical and you win then that win is no smaller than what you thought you were receiving. Whether the 1 pt received is a fair deal is another story.

Feel free to explore the use of ET's "Ignore User" feature

It's a bit helpful if the underlying in your bullish spreads go up and the underlying in your bearish spreads go down.

How many legs does it have? :confused:

Rumor has it that due to the severe decrease in availability off black swans, Lipizzaner stallions will now be substituted for those who prefer black and white. Giddyup!

If strikes K1 and K2, and P = net premium received then ABS(K1-K2)-P = 1/2 the number of dead swans :)

PS The problem with this strategy is if the underlying moves in the wrong direction. The downside is that you lose money.

You mean that people really think that there's no edge to selling??? I can't believe my own eyes! :D

Because his butter maker broke? Fool Service Brokers are useful for beginners who need hand holding... though I must confess that they were useful to me in the late 90's during the Internet craze when I was an IPO whore :)

You can post about possibilities until the cows come home but it will just be an endless back and forth about just that. If you want something more concrete, set up a generic spreadsheet template (3 month time period) that will crunch the numbers. Include time remaining until expiration...