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I don't think that was the issue. I think it was that the volatility started to increase so the price on the front month options went up, whereas the projection was for decreased volatility in the back month and the price didn't go up.

I started trading options on the VIX when they first came out. I noticed that the near month calls were selling for more than the far month calls. I thought I had found a sure thing with a pricing error and bought spreads selling the near month and buying the far month, assuming at expiration...

So are you saying that they went in and adjusted the old VIX numbers using the current formula for calculating the VIX? If not then I don't think you can compare the post VXO VIX #'s to the Pre VXO VIX #'s as they are not based on the same criteria. I was trading options on the VIX at the...

I don't remember which year it was, but within the last 4-5, they changed the way they figured the VIX. I don't know how that effects the older numbers when comparing them to current numbers.

Been in SGMO for a few years . The stock is up about 50% over the last month as it is tied into the HIV drug that has been making news. Still only at 1/3 of its previous high so might have room to climb.

In Jan 2009 I had some money I wanted to park so bought some stock at $49.70 and sold the 2010 50sp call LEAPS for $978. I picked up the 4% divy and at expiration bought the call back for $395 and shorted the 2011 55sp LEAP for $495. Stock is at $65. Assuming the stock doesn't tank before...

I took loses on the puts I recently bought on the oex and GE. I'll I'll buy them back if/when the downturn is more confirmed. Meanwhile my portfolio is going up.

"So I am very puzzled that WHY would you care to read on level 2 AT ALL????? " I have that on my screen, that is not level 2 info.

I did this same thing last year in July, bought Sept 520 puts on the OEX but was too early and they went down. When I got back up to even I didn't hold them or roll them out to the Oct 520's. BIG mistake, those $300 puts finished $10,000 in the money each. This time I'll let them ride and and...

"I think he meant mkt will go higher now that he is short" Bingo, you got it. I really should publish a newsletter lsiting my trades, it would be a great contrarian guide.

I know because I bought puts today.

You know I hate to say this because people will think I'm blowing wind, but I actually have a sysytem for shorting stocks based on a specific criteria that has been working on paper for the 4 years I've been keeping records of it. Unfortunately, I only trade in my IRA now and it doesn't allow...

"Having a technical strategy that is quantifiable is what makes some of the best traders the best. It's all about having a strategy and following it with discipline. Guys like Jim Simmons, Jerry Parker and many other 100% systematic traders do much better then traders who have a "feel" for the...

GOOD ARTICLE

"I don't see any interesting options ideas here now. " You might not be getting any intersting options ideas but this is definitely the most entertaining thread I've read in awhile. But for ideas here you go: short 10 ATM puts on the SPY on Monday and I'm sure you'll have an interesting...

"easily the writer...the only reason more do not 'write or sell' options is because the 'average Joe' does not have the huge cash needed to write/sell options...especially, naked or 'uncovered' options...probably the best and easiest trading vehicle is writing/selling options...BUT..again, most...

I wouldn't care about the option pricing as long as the $ taken in on selling the premium on the put makes it worthwhile when looking at carrying costs. For the IBM example, $35 is a long way for it to fall and if it did there is nothing to prevent you from shorting the stock which is the way...

"Only a poor pricing will lead to a statistical hedge but again it is not inherent..." Are we talking about using pricing to develop a statistical hedge, or a system that has an edge because it wins in 4 of 5 possible scenarios. I think there is a difference. I believe there is an edge to...

"Without the childish insults, can you tell us how you concluded that sellers have the edge?" The market can only move in 5 directions and in 4 of those directions sellers make money, buyers in 1. Does winning in 4 out of 5 times give you an edge? I think it does.

You know when I used to trade the Q's and OEX, I always thought selling 1000 OTM puts for a nickel on the Q's a day or two before expiration was a good way to take in $4000 a month with limited risk. Back then, the amount the Q's would have to move for the put to get in the money made it so, I...