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be careful about buying a license to OptionVue 5 because it will not be worth all that much now that they have released OptionVue 6 - and it costs $495 to upgrade from 5 to 6.

Try OptionVue (www.optionvue.com). You can get the trial of the new OptionVue 6 at no charge now, and the trial includes their BackTrader data. It has data every half hour going all the way back to January 2001 and you can go through testing strategies over the past seven years to see how they...

It seems like this thread is not that useful form anyone looking for a new book to read, and I have I have never seen one book that covers it all. So I thought I would put down a few that i have really liked over the years and found useful: High Performance Options Trading, by Len Yates...

I did go to one of John's full day seminars in New York a couple years ago. He does trade on a daily absis himself and managing money for others is his primary line of work. I thought it was worth it to hear him talk. He primarily deals with options in the index futures, SPX and DJX, with a...

Well, I guess that is to balance out the recent decision to allow increased logging in our largest national forest: http://www.msnbc.msn.com/id/22868328

You are definitely correct that forecasting future volatility is the key to modeling option positions. While it may be true that statistical analysis is the only way to measure true recent volatility, market implied volatility (IV) is generally considered a better indication of future...

The expected return displayed already takes that into account. First, there is the shift along the vol skew curve. By that I mean that if the implied volatility IV of the November 150 ATM call is 23.5% and the IV of the November 151 call is 22.4%, when the SPY increases in price from 150 to...

I thought it might also be helpful to look at a Matrix of all the call option on the SPY showing their Deltas. It may seem that the trade recommendations posted previously are done just by picking the smallest deltas in the month with the least time left. That is why i also added one...

I decided to run the scenario through my software to see what it says would be the best call options to purchase f you expect a relatively big move up in the next 3 days. I chose to run it on the options of the SPY (currently at $150.15). For my target I said that it would go up between 2.5%...

There are about 3,050 stocks and ETFs that currently trade options, and many of them are smaller cap stocks (not really micro cap for the most part). One thing you have to worry about is liquidity. Only about half of those trade over $40,000 in options per day, on average. I usually screen...

Now I used the same ETF for Emerging Markets (Symbol: EEM), with the same positions: a covered call selling an ATM call in December and a short ATM put in December, then superimposed them for easy comparison. But this time the vertical axis is yield rather than profit/loss. The difference...

Using the current market on the ETF for Emerging Markets (Symbol: EEM), I analyzed a covered call selling an ATM call in December and a short ATM put in December, then superimposed them for easy comparison. You can really see only one line, because the risk graphs for both are almost precisely...

I think that is true. I also do not think he really has much experience being an off-floor trader, which it sounds like you are interested in becoming. You might want to look at Chris Figgy of discoveroptions.com if you want a mentor that not only has pit experience but also has been...

I did not want to post the entire article without permission, but was only trying to show it may be possible to make money on it, at least over the long term. As anyone that trades a few favorite stocks knows, different stocks behave differently. He noted in his article that of the ones he...

I saw one of the free "Inside Wire" webinars on www.discoveroptions.com where one of their Mentors, Chris figgy, (who has traded off floor many years plus was a market maker on the floor) said that the Volatility skew curve begins to shift up for the second month options on or about Tuesday of...

I notice in the recent Informer newsletter, Len Yates - the President of OptionVue Systems - wrote about just this. he looked for growth stocks that are likely to move a lot (scanned for stocks that have PEs>50, 50% year-on-year revenue growth, high price/book value, etc) and he came up with...

You do not say what you have apart from the base program. Do you have the BackTrader module, that allows you to test and BackTrade strategies, using their free historical data for every stock, future, index, and options every ten minutes going back to January 1, 2001?

I was looking to see just that a while ago and there is no way to see when you last logged in, unless it is something very new they added. The only thing you can do is change your password so that they can't do it again.

It always makes sense to to exercise a call option early whenever the option is trading at, or below, parity, and the stock goes ex-dividend tomorrow. In fact, the only time it makes sense to exercise a call option early is is a dividend is being paid before expiration day. Anyone trading...

There are other ways to hedge of course. One is by trying to diversify between asset types. But one thing I have noticed is that when things get bad, unusual things start to happen - like assets dropping in price together despite the fact that they are not usually correlated (think stocks and...