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This is all just my opinion. I prefer to sell OTM options in indexes rather than "stocks". When OTM options expand in individual underlying, you take the risk of "hot" money knowing something you don't. It increases the risk of an "event" causing a loss. With regard to Index options like SPX...

Sorry, that was not meant toward you, but in general from the post over all. Yes, your last statement I agree with. What many on ET often say is that trading ATM options is better than trading OTM options. That buying vol is better than selling. That sell ATM options is better than OTM options...

I look at this a little differently. The ATM IVol is the based on the current market expectation of uncertainly/price movement. If you have a statistical way of determining that: -the market is mis-pricing future price movement -the market will shortly do something to raise or lower Ivol based...

I agree.

It was my understanding that cox-Ross- Binomial options pricing model was the standard now.

I'd be interested to know, on average, if most leaps are initiated from a buy or sell order. I never activity traded options going out longer than 6 months.

The Skew comes from assumptions, not the model. For a short period of time after I left the Amex floor, I was going to trade options on sugar. I noticed that the skew was the reverse of equity options. Why, because the fear was from a shortage. The OTM calls were much higher than the OTM puts...

In my experience, there are a few factors that tend to create the typical equity skew where OTM puts are higher than OTM calls. -stocks tend to go down faster than they go up. -when stocks go down, since most investors are long, there is increased fear/uncertainly-Ivol will tend to increase...

Dark pool operators don't want details known about how they operate. Same with "Smart" routes. No one will provide details.

Keep in mind that many of these books a biased against the industry. They often don't tell a balanced story.

DEF, just to be clear, this statement is referring to equity orders, not option orders?

The LP protects the investors by limiting their liability to the funds invested. The manager of the fund is normally a General Partnership. None of this will stop an investor from suing you if you break the law or do business contrary to your Investment Management Agreement.

My personal preference is to NEVER use market orders. I'd rather enter a limit order through the offer or bid. You never know when there will be exchange system problems and liquidity will disappear.

IB charges but if you are non-pro, the MD cost is very low.

The funds I'm referring to are not HF. Option PM margin is a moving target. House rules can be too. They would like the opportunity to adjust to market conditions on their own. Remember, we are talking about margin, not losing money.

hajimow, I can see you are VERY happy with IB, and that's great. However if you are a hedge fund, auto-liquidation, that can occur from wide markets in options during times of stress or exchange system issues, and can cause losses, even though the fund was not losing money. They would like the...

NeoTrader, Some how, as with many threads, this has gotten off track. I can't speak for IB, so I'll speak in general terms. With regard to equity orders that are full DMA, where you can route your orders, you have the expectation that those orders will not travel first though an equity dark...

If you can make $300/day on $5K, on average, that is badass.

I guess it make a difference if that is on $5K, $50K or $500K. 10% per day is an interesting goal. 10% per quarter is hard when you scale up.

I can't respond to that in a public forum. I'm sure others will be happy to provide their opinion.Keep in mind that the best rebates for options are between $0.45 and $0.85 for non-penny equity options . Reg fees around around $0.0947/contract. If you buy and sell at the same price, you will...