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http://www.nakedcapitalism.com/2014/04/michael-lewis-repeat-omission-crimes-committed.html Michael Lewis’ Repeat Omission: No Crimes Were Committed Posted on April 2, 2014 by Yves Smith In Flash Boys, Michael Lewis has again launched a book that hews to his established formula: colorful...

I walked away being up overall on the trade(s) but it sucked to do all that work and finish close to where you started.

No, I didn't even know what trading was prior to 2006. I started "trading" in 2008, that's when I opened my first brokerage account. My first trade was in SRS and made a small amount...then proceeded to suck @ss wile learning how to truly trade. I started option trading late 2012. Below are...

20% is a considerable move in something like an index (SPX in this case). If this event was to occur in such short notice to where people didn’t have time to respond, I would personally speculate that there would be some type of mean revision in that same time period - similar to the flash...

I haven't verified but don't forget during that time period the VIX was greater than 30 (maybe even 50). A 2SD move during that time frame may have encompassed the move you speak of. SD is a moving target.

Question for anyone able to find these stats easily: Has the market (SPX for that matter) been down +50% in a 40-60 day period of time? It seems that if she trades having an idea of what here margin requirement would be (not guaranteed, but an idea) base off of what options she already has on...

She sells individual calls and puts in SPX. She hasn't sold ICs since the 2007-2008 timeframe. Her call/put selling strategy has been adapted to the market conditions over the years.

I am not sure about going and finding the data but it would be interesting to know how many consecutive years the market (S&P500 in this case) has performed >25%+. Is it unheard of or does it happened often? In any case, it would be amazing to me if the market performed back-to-back 25%+ years.

It will take me a few days to read and digest the information in that PDF. Having graduated with a bachelor’s degree in electrical engineering and physicals and a master’s degree in Industrial engineering, I am sure I will eventually figure out what is being stated. From...

I’m not sure what you mean by normalizing price and what it has to do with using a ranking of Implied Vols within the TOS platform for a particular underlying. Not saying it isn’t important but I’ve done quick a bit of trades where the IVR as >50%, and yes the price was still gyrating...

Tastytrade teaches to only use underlyings that are deemed *tradable*. People that follow this method of trading would avoid names that don’t meet the *tradable* conditions regardless of the IV Rank. These requirements are high volume of the stock, high volume and open interest of the option...

Which schools/universities teach trading? How much is the cost? Is the cost comparable to what someone would possibly lose trying to learn on their own? My education in option trading has been orders of magnitude cheaper than a university and I'm making money. My case does not represent all, but...

You definitely gave an example of mark-to-fantasy when it comes to OTC derivatives (CDS’s in this case) so I can’t fault you on that. As a retail trader though, do I even have access to OTC derivatives? If not, then all retail derivatives that I have access to are mark-to-market throughout...

I also wanted to add that this is one of many considerations I use to enter a trade. If the underying is a stock and earnings are near, I don't make the trade. I wait until the day of earnings to try and capitalize on the binary event.

My bad, for some dumb reason I was calculating reward/risk which returns <1. So yes, credit spreads have a risk/reward ratio >1 sense the credit one receives will be less than the potential loss that can occur. So a shout out to drownpruf and newwurldmn for correcting me on that.

I don't know if it will be better for the trade that I do, but vol *should* be higher than if an underlying is just slowly moving in one direction. No guarantee of an win, just trying to fade a >+/-5% move with time/duration and potentially higher Vol prior to the trade (assuming no earnings...

Oops, my bad, I mint to say that OTM credit spreads have a R/R<1. Anyway, I will continue trade the way that I've learned due to the fact that it is working for me. I'm not knocking your method or saying that my way is the only way. That's all.

R/R > 1. It is impossible for credit spreads to have a R/R > 1. But I do like the statistical edge they provide on top of event driven entry points I trade off of. Yet again, I just think we are similar just on two different sides of the isle. If you’re winning trades and money, everything...

I would do so if this particular strategy never worked, so there’s no need to. I instead pat myself on the back for a job well done in learning how to option trade. It isn’t the only way to trade options, but I’ve found it works for me. Man, such dislike for the guy huh? Why don’t...