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botpro, I promised I will help you... Here is my question. Assuming some static transaction costs (commissions plus bid/offer), can you estimate what your hedging breakeven point is? Specifically, suppose you have sold the put for a total of X premium. How many times can you perform the...

I agree... That was NOT cool.

Isn't this "possible insider trading" one of the risks that you face when you sell short-dated OTM options? When picking pennies in front of the steamroller, you shouldn't be too surprised when occasionally you get flattened, no? Realistically, the issue is that it will probably be difficult...

Right, let me be serious here for a moment... What you seem to be missing here, botpro, is what someone with a modicum of brain matter should have considered by now. Specifically, ask yourself this question: why are people who have and are actually trading (unlike yourself, a "researcher")...

This sh1t just keeps getting better... Just when I thought we've reached the limit of awesomeness, botpro surprises again!

Read stuff by Ernie Chan, including his book. You can also find things if you search other online fora (e.g. NucPhy). In my experience, the odds of a paid online trading course actually offering value are quite low.

I never thought that I'd be able to witness the Dunning-Kruger effect in all of its glory, but, boy, was I wrong! This is special...

This is a priceless thread! Keep up the entertainment, botpro!

Huh? You're telling me that PNL is irrelevant? That it has no impact on the position itself? I have a feeling that your broker might have a slightly different view of how things work...

Good lord, you're so confused, man...

Let me say it again... If you mark-to-market, volatility matters, regardless of the style of the options and whether one is a buyer or seller. Period.

No, you're wrong... Think about it for a bit yourself and you might get it.

Huh? What difference does it make whether the option is European or American? The development of volatility during the life of the option matters to sellers and buyers alike, regardless of the style of said option.

Riiiight... Your PNL is based on the mark-to-mkt valuations of your options positions. These valuations are sensitive to levels of implied vol, to a lesser or greater degree. Again, think about the logic you have applied to determine that "development of volatility plays a role for the option...

Well, let me ask you a couple of leading questions then... Do you care about mark-to-mkt, drawdown, that sort of thing? Does it make sense to you that a particular factor matters to the buyer of an option and not to the seller, given that these two mkt positions are reciprocal?

You really should stop saying silly things...

The fun never stops at Douche Bank: http://www.bloomberg.com/news/articles/2016-04-14/deutsche-bank-found-systemic-failure-behind-russia-cash-flight

However, assuming you did somehow choose the "optimal" expression, your PNL should undoubtedly reflect that. In the case where you get things wrong, it might help reduce your losses.

TBH, I appreciate this is a discussion of semantics. However, I note that neither the author of your first article nor yourself have any data to corroborate the statement that it's lease condensate that's solely responsible for the increase in world "crude oil" production. In fact, based on...

http://www.eia.gov/totalenergy/data/monthly/pdf/sec11_5.pdf No LNG, lease condensate, which is included, is a fraction of the total.