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you do it the wrong way: you got to have an idea of future volatility first, then you put this in Black and Sholes formula so you get the price of the option. If the option on the exchange differs with the price you get (meaning it has an implied volatility different from your guess of future...

how else are you going to get "implied" volatility, "implied" means the volatility coming from the option model. You definitely have to read up on options: just by reading your questions I know you don't have enough knowledge about this. So there is stuff you don't understand, which will make...

For what it's worht magicdust, I had a rough afternoon too yesterday, it just was hard, even CF started complaining in chat :D To make things worse: I left my trading screen to get something to eat and then we saw a monstermove of over 50 pips, so I even missed that one. However I kept on going...

it's like MTE says: build a model in excel, put your data in and your vol should come out. If you think the options are mispriced you should easily make some money. However remember: garbage in, garbage out ... BTW: buy "option market making" by Baird to know how to make some money, also get...

it's not mean to be funny. Get yourself "options as a strategic investment" by McMillan and "option market making" by Baird to read up a bit on the subject. You should be able to find an option model to calculate vol if you google.

read the journal: intraday fx player the short answer is yes you have to use stops if you are scalping, otherwise you will get killed. To get the 'right' stops takes some subjective judgement, but most of the time they are rather close.

whatever, keep on nagging ... mr. 26 posts

the fact is you behave you behave like a moron, so it's normal I call you a moron I live in Bruges, where they build houses hundreds of years ago that are still standing, a few over even over a thousand years old ... want to compare to your hometown ? I'll bet you they don't come even close...

all these models have their limitations, these are especially important for market makers. They prefer more sophisticated stuff. You can still use B&S, but prices won't be perfect, you have to know how to adapt and realise that a lot of the input/output will be estimates. There is no such thing...

Pedantic insect, like I told you I couldn't care less about being famous (but if you can't think of at least one, one is about to take over the company which produces 'BUD' but let me guess, you don't know that) its only in your small mind that that is important. So now please STAY under your rock.

The benelux was allready erected in 1944. as a custums union so the idea was allready there. In reality there was more than one idea behind the the european community of coal and steel. Yes you are right however one of the main reasons to erect the european steel and coals community was to...

whatever asshole it's obvious you talk big, but you know shit ...

I was an option market maker 10 years ago, even then almost nobody used Black and Sholes anymore. For currencies you can't really use the classic Black and Sholes as two intrest rates are needed. For intrest rates the intrest rate is used for the remaining time of the option, but that can...

Pedantic one who should have stayed under his rock, I couldn't care less if people know 5 famous Belgians, it's only in your narrowminded brain that that is important. And next time (once again) get your facts straight: Belgium didn't JOIN the European Union, they ERECTED it. The EU started as...

good to have you back Yoohoo, hope you enjoyed your trip. I guess a lot of people expect trading to be easy (they call it "easy money" for something), putting a decent effort into it and that it might take months of screentime to learn and make it work seems beyond them. So their easy...

there is no such thing as THE option formula. There are several for several products: options on fx, futures, equites or bonds get priced through a different formula. Even for one product there are several formula's: these are model trying to reflect reality with each one of them having limits...

this is not true, institutions are mainly sellers, individual traders are mainly buyers, it's the overall position that's important. If the market maker is long options he's is seller above the strike and a buyer below the strike. If he is short options he is a buyer above the strike and a...

it all depends whether they are long or short options

I have an English account moron it's the first time you mention that you have a Canadian account and so what, margin is the same worldwide. they have made a mistake: they forgot to correct their website in Canada after they let people use the old lesser daytrading margins again and you feel...

on languages ... there is a big difference in speaking a language or writing in a foreign language, the latter is much harder and you tend to make grammatical mistakes you wouldn't be making in a live conversation.or to misspell words in ways you can't imagine being possible if you reread it...