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I don't want to short vol using options. Is there an ETF on Gold that derives its price from the volatility of the Gold prices and not actually from the actual returns on Gold? I want to eliminate market direction and focus on vol. Thanks -Larry

Thanks a lot everyone. That makes sense now...

Thanks all, especially equalizer. Now, in your expression you said it could be one or the other? So it is not a bound like (-3, 5]?

Why is it that European options can trade below parity (& have positive theta), while American Options cannot?

The Cox-Rubenstein Model for Calls is C = 1/(rr)^n[sum(from k=0, n) of (n!/(k!(n-k)!))(p^k)*(1-p)^(n-k)max(0, u^k*d^(n-k)*U-E] What does the max(0, u^(k)*(d^(n-k)U-E) mean? More generally, what does the max() function mean when it follows an infinite series? Much appreciated,

I've been reading Natenberg's book 'Options as a Strategic Investment' and was wondering several things. On pg. 48, he says "If the underlying contract is subject to stock-type settlement, as we raise interest rates, we raise the forward price, increasing the value of calls and...

Hi guys, I'm new to options and I am currently going through McMillan's book "Options as a Strategic Investment." In it, he says that the Reverse Straddle is an equivalent strategy to using Puts (haven't gotten there yet). He says that the maximum risk for a reverse hedge (reverse...

I've started learning a bit about options and I have a couple of questions on covered calls. If you buy a stock and write a call that is deep, deep, in the money, you will have downside protection of Stock Price - Option Price. However, your profit will be much smaller. I've done several...

Hi guys, I just joined the forum and was wondering what is the "Bible" of options trading? I know 'Security Analysis' is for I-Banking. What about options trading? I am looking for something that gives strategies and how to implement them, as well as binomial pricing and black-scholes...