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I'm in agreement with DRCHA. In order to succeed with trading, for the most part you have to get something right regardless of whether you're trading direction, non-direction or volatility. Perhaps you leg in advantageosly. Or you adjust well (booking profit or mitigating loss) - and get some...

Well, you know what they say, size doesn't matter. :)

I don't think that the Greeks are mandatory if one trades a one or a few different plain vanilla strategies, eg. verticals, condors, etc. One can reference the price domain and still be on top of it. Now if you have a wide variety of option positions, it's a different story. What I'm...

Calculate the change in delta per leg (bid to bid and ask to ask). Adjust for any IV change. Multiply each of those by the change in the underlying . Add em all up. If's it's not in the vicinity of the $25 cahnge you noted, then the platform calc is off.

If you can't trade stocks successfully then you have to be a lot more sophisticated to make money with options. Ignoring the soon to blow out lottery ticket noobs, I suspect that an awful lot of retail trades options because they can be in the game with a modest amount of cash (and risk)...

Every time I've tried to trade a crossed market, the other side conveniently flips against me once the first side is filled. And sometimes it's just bad data.

That's why it's called implied volatility because it can't be solved for in the BS equation :eek:

You cannot solve for volatility in Black Scholes hence the reason that iteration is necessary. If you're not familiar with iteration, it's where you enter a sequence of successive numbers for one variable (volatility) which yields an answer successively closer to a desired answer (the...

A good trading platform will show you prices pre/post regular market hours. If real time isn't essential, you can look em up at (click AFTER HOURS QUOTES under EXTENDED TRADING): http://www.nasdaq.com/quotes/after-hours.aspx $10 per trade is good if you trade larger blocks of low...

You can't make the assumption that because 4 stocks lost 2/3 of their value after delisting that RINO will do the same. I've owned stocks that were delisted to the pink sheets because they didn't meet listing requirements and they didn't lose a penny (OK, didn't change much) . Ironically, the...

Well OK, if you expect the UL to trade below $5 when it resumes trading then you have a point. But there's no guarantee that it will.

All pricing models require those inputs. "By definition, the implied volatility of an option contract is the volatility implied by the market price of the option based on an option pricing model. In other words, it's the volatility that, when used in a particular pricing model, yields a...

While I appreciate the effort you put into posting these trading situations, I haven't seen much in them that I could use. Perhaps my threshold for attractiveness is higher than yours. For example, for calendars, you scan for back months that are cheaper than the front by at least 8 vol...

And you would want to exercise "out of the money" puts why ???

Absolutely! At expiration, you collect your money from the leprechauns who run the CBOE. :)

What else can they do other than take the last price of the underlying when the puts expire?

To calculate implied volatility you iterate the option pricing variables in an option pricing formula such as Black Scholes.

And Regis, my final answer is: Note that for November they used a final price of $6.07 for settling options. If that's still the case, you're sh*t out of luck for the Dec 5's. Happy trails... :D

DATE: NOVEMBER 19, 2010 SUBJECT: RINO OPTIONS - TRADING HALT/EXPIRATION PRICING CONSIDERATIONS OCC STRONGLY RECOMMENDS CLEARING MEMBERS CONTACT ALL HOLDERS OF EXPIRING RINO OPTIONS TO APPRISE THEM OF THE CONTENTS OF THIS MEMO. The OCC has been informed that trading in RINO International...

Just to complicate things, have a go at this: OCC memo #27391 http://www.optionsclearing.com/components/docs/market-data/infomemos/2010/jun/27391.pdf DATE: JUNE 15, 2010 SUBJECT: REVIEW OF TRADING HALT PROCESSING Rule 805 provides that if an underlying security is not traded on...