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For example, right now, the ES is up by .55% and VXX is up by .46%. Usually whey ES goes up, VXX goes down. Somebody is keeping the VXX price to the Vix future price. Looks like supply/demand is not a big factor driving VXX price.

Since no body replied, let me ask this question in another way - is the intraday price of VXX purely driven by supply and demand? Or is it also related to VIX future price? I understand price of a stock is purely driven by supply/demand, but should be different for VXX type of ETFs. It would...

Does anyone know how the VXX intraday price is determined? And how VIX futures (front and second month) affect the VXX intraday price? Thanks

You are kidding, right?

Can you explain what you mean "no heat entries"? Thanks.

From the link at the end of your post, I went to your blog and I am still reading your blog. I just ordered one of your book - Rookie's Guide to Options. I also ordered two other option book, The Volatility Edge in Options Trading: New Technical Strategies for Investing in Unstable Markets, and...

Good explanation. Thanks. When I long or short stocks, I use small position to control risk. Because of the small position of each trade (usually a few hundred shares), even the stock moves exactly as I expected, I only make small gains. I thought option would allow me to put on much bigger...

Thanks for the explanation and suggestion. I am reading as much as I can on option trading. The more I read the more I find option is quite complicated. Regarding your suggestion, what's the purpose to put on a bear put spread rather than just a long put? Is it to reduce cost?

OK, I see. Thanks.

Thanks for the reply. When you say "under obligation to buy them from you", you did not mean "obligation", you just mean they can make money from the trade because of the low bid, right? I just want to make sure I understand you correctly.

Thanks for the reply. Yes, I understand the difference between put and call. The reason I want to buy put instead of shorting the stock is because the put option has 1) fixed max loss. 2) high leverage (less money tie to the trade). Why do you say "It is VERY difficult to make money when...

Thanks for the attached picture. That explains very well what's the problem in the thinly traded options. I did not know the spread can be so big in option.

Thanks for the above replies. I will start with options that have high liquidity so that I can easily sell them close when my target is met.

I am learning option trade. My question is: If a stock option only has less than a hundred of open interests, and if I buy 5 contracts of Feb 2010 put and the stock price is moving lower, can I always close (sell) my put position at any time? Or do I have to exercise the option because no body...