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Nope, quite the opposite. Selling ATM options means you can afford to sit and be patient. The market is paying you handsomely for your risk. You don't have to react to every up tick and down tick. As the market moves away you lose gamma which is what you want. Gamma is your cost of...

Are these threads real or just trolling? Look at the guys name. LOL. The safest way to sell premo is ATM. By faaaaaaaaaaaaaar the safest way. Selling 5 delta puts and earning less money then what's in your coach and loading up on margin with the underlying? Come on guys....

No sir King. No interview here. Just keeping your tools sharp in the shed. The correct answer is asset B. :(

Price an option on a stock currently trading at $100. In a month's time the stock can either go up to $110 or go down to $90 with equal probability of 50%. Price a one month at the money option on this stock (ignore the discounting factor).

Someone offers you a game where there is a 1% chance of the market going down and a 99% chance of it going up. If the market goes down then it goes down by 1,000 points and if it goes up then it goes up by 10 points. Is this a fair game?

For futures it is simply referred to as the Black model.

Well I assume it's going to work very well as long as the vix trades lower. When the vix spikes though it can be a mess trying to handle 40 or 60 different strikes. I'm just saying there are easier ways to do this. But back to your deltas, shoot IB an e-mail or see if google shows up...

Also, why are you selling vol at the lows?

I'm actually long vol. I try to keep things simple. That's a lot of commissions and a lot of spreads you are giving up doing those 26 legged monster. Be careful. There are a lot easier ways to sell vol. LOL. Yeah I'll be honest, those are too many options for me to look into. I have...

NUGT....those gold miners really have some spicy vol.

OK, so I guess no one else wants to take the quiz. LOL. Either that or everyone is gone. Anyone seen the King lately? I'll answer one question at a time. Shit guys, I was hoping to do several of these quizzes but if it's going to take a month to get 2 people to do one then scratch that...

What in green heaven's is that thing? LOL. Good Lord.

The numbers should match exactly if they are using the same pricing formula of which there are many. TOS allows you to choose which model you want to use. Simply ask IB support what model they are using if it's not already mentioned somewhere on their website. The model is very important...

The long vol trade had more value then shorting the market. Specifically the way I structured the option trade. It would not have lost much had we returned to the all time highs. It just an opportunity to get the downside exposure for little to nothing and give me the optionality to pile in...

Well, that long vol trade worked out pretty well. :)

Beans...

Again, I'm not short the market. I'm looking for value. I have no idea where the market is going to go. All I can do is look for areas of the market where I think the pricing is to my advantage. Try not to think in terms of "can I short the market here". Fisher would call those people...

Correct, he always has these positions in his main fund but he tends to create special vehicle funds that allow him the ability to lever up. I think his main fund he focuses a lot more on containing losses and lowering volatility. These special vehicles he creates throw that aside and say, I...

I think good traders see prices in terms of value or in terms or relative value. They think multi-dimensionaly. When you use the terms bullish or bearish you see one dimension. So If I'm bullish on AAPL, what I'm really saying is I'm bullish on AAPL relative to the S&P. See the...

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