Search results

I actually meant bias in direction/trend of the underlying. But I guess bias in vol trend should also be part of the formula to be competitive. So you are saying all automated market making algos do take all that into account and reprice all offers constantly?

RE: directionality input in option pricing I am assuming that a lot of otions marketmaking is automated with some presumably sophisticated option pricing models. I wonder if the models include some directionality besides purely statistical/volatility inputs. A human trader presumably always...

RE: screen/search over volatility data in the past I am looking to screen/search over volatility data in the past to backtest some strategies. I dont think ThinkOrSwim ondemand provides that.

Aslo curious about possible arbitrage strategies? Or is it all eliminated with auto trading?

Weekly options: SPY vs ES Weekly options on SPY have much higher volume/openinterest than on ES. Bid/ask spread wider on ES. More granular strikes with ES. SPY subject to pattern day trader rules. ES trading extended hours. Position sizing can be adjusted proportionally (but not...

I heard many times that one should close out short OTM options at pennies, rather then let them expire shortly. In case of conservative credit spreads those pennies are a big chunk of profits.

Do you mean not deep enough?

Someone said reallife optionchains dont have any profitable trades or asked for specific examples how about this for example: SPY sep2010 (85/95) put spread now is at credit .30 (0.41 - 0.11) 100 verticals like that = margin 100K for 3K return over four weeks. commission is a couple...

(almost) riskless strategy ? 1) a couple/few weeks before expiration 2) DeepOTM-Call-Spread or DeepITM-Put-Spread (on some major index underlying) 3) hold to worthless expiration. Ignore the greeks (theta is your only true friend) Granted it will have a big margin, but it is a...

Thanks! TraderGreg123, that makes sence

InteractiveBrockers paperTrading account ES futures automated startegy: target + a tick stop - a tick reverse on close set it up and let it go for a while... I was expecting about 50/50 win/loss trades. Not so... I get pretty consistenty almost 3:1 losses why is that?

Today was my first day trading ES - SnP e-mini (1 contract at a time) Trading all day Filled orders: 365 Result P/L: +$634 This is probably called scalping - tried to win just 2-3 ticks per trade. Morning and parts of afternoon was very hard to trade - very volatile; best was during...

Today was my first day trading ES - SnP e-mini (1 contract at a time) Trading all day Filled orders: 365 Result P/L: +$634 This is probably called scalping - tried to win just 2-3 ticks per trade. Morning and parts of afternoon was very hard to trade - very volatile; best was during...